A tale of two cities: mission-oriented innovation policy in China’s green industries

Mission-oriented innovation policy (MOIP) has become an important means of fostering green transition in many countries. However, few studies have focused on how the various challenges unique to developing and emerging economies affect the design and implementation of MOIPs. Through a longitudinal comparative analysis of China’s two green industries, our study contributes to understanding MOIP instrument mixes within the context of developing countries and industrial differences. First, we identify a four-dimensional framework of MOIP instruments aligned with the existing literature, while also highlighting China’s policymaking features under authoritarian yet adaptive governance. An in-depth analysis of the implementation of MOIP instrument mixes throughout niche development uncovered dynamic mechanisms, industry differences, and complex local government responses. Our work suggests that, with an adaptive instrument mixes that focuses on both types of missions and the local institutional context, MOIP can potentially promote green transition in developing countries.