The article explores how China is moving from being known for manufacturing to becoming innovative in services. The researchers reviewed Chinese literature on service innovation and found that organizational innovation and regulation environment are crucial. They suggest that China needs to focus on marketizing services to boost innovation. Policy makers should prioritize services like they do manufacturing and reduce regulations to encourage innovation. The government should also support the development of service infrastructure. This study sheds light on how management, sociology, and economics play a role in service innovation in China.