The imitation-innovation trade-off - Does "Borrowing dull the edge of husbandry"?

This article examines the proposition that there is a trade-off between imi tation and innovation when state elites try to "borrow" institutional desig ns from other policies. After synthesizing theoretical propositions both fo r and against a trade-off, the article develops evidence from case studies of two periods in which such institutional borrowing was widely practiced: the post-World War II American occupation of Germany and German reunificati on after 1989. It concludes that imitation sparked innovation in both perio ds, although for two very different reasons. The article emphasizes the rel ation of the research findings to theories of institutional creation and ch ange.