Local government innovation has become one of the most important topics on China's policy agenda in recent decades. This book explains why some local governments are more innovative than others.This book uses a novel theoretical framework and points out that in China's multi-level government structure, the administrative hierarchy and the span of control could shape local governments' innovation motivation, innovation capability, and innovation opportunity, thus influencing local government innovativeness. The author systematically analysed the 177 winners and finalists of the biennial Innovations and Excellence in Chinese Local Governance (IECLG) Awards Programme from 2001 to 2015 to provide convincing empirical evidence to support this theory.This book adopts an institutional approach to explaining local government innovativeness in China and may be a useful reference to help us learn more about local government decisions and behaviours.