Policy Innovation by China’s Local Governments: Beyond the “Championship” Model

Abstract The “innovation championship” model has been instrumental in explaining policy innovations in China’s local governments, particularly at the provincial level. However, discrepancies between this model and real-world cases raise questions about its broader applicability. To address this, we employ a dichotomous framework (innovation generation/borrowing) and conduct multi-level quantitative analyses of government work reports. Our analysis suggests that between 2003 and 2022, most provincial innovations were driven by the championship model, which relies on central government recognition, while others were shaped by peer recognition mechanisms. Together, these form a “central and peer” (CP) model that prioritizes innovation generation while incorporating a degree of innovation borrowing. This CP model differentiates the innovation functions among provincial governments, which have formed a collective innovation network: pioneering provinces generate model policies, while others capitalize on these opportunities. Moreover, the extent of the central authority’s influence determines the relative importance of these two mechanisms.