<p>How should “Made in China” be re-defined? This paper revisits and reconceptualizes the “Made in China”, investigating its ongoing shift from a manufacturing to an innovation orientation through the lens of the neoclassical model of investment. Specifically, our empirical analysis, using a firm value decomposition model, reveals that this transformation is more prominent in high-tech industries compared to low-tech industries, and has become increasingly evident in recent years, especially after the implementation of the “Made in China 2025” initiative in 2015. We argue this shift is not a spontaneous market occurrence but the result of a concerted state-led project, driven by the political imperative to secure economic legitimacy and technological sovereignty. This study contributes to understanding China’s unique model of governing innovation commons, embedding firm-level innovation within a broader national strategy. The findings hold implications for policymakers and investors, highlighting the primacy of innovation capital and the need for a holistic governance approach that fosters both hard and soft innovation within a balanced state-market ecosystem.</p>