After Moon Jae-in government launched, the government innovation is emphasized as means of settling social issues. Local governments are also making innovative attempts to solve local challenges. However, there is currently an imbalance in the level of innovation among local governments, which poses a risk of undermining the creation of an innovation ecosystem in the long run. Therefore, this study analyze the impact of collaborative governance institutions and local resources and of neighboring region on the level of local government innovation. The level of local government innovation will be measured by the frequency of the innovation policies, which are divided into the current policies and the excellent policies with at least one award. As a result, we confirmed the influence of several factors on local government innovation. In particular, the significant impact of Innovation Ordinances that contain governance elements have been found. We suggest the need to activate and develop collaborative governance institutions that are the cornerstone of local government innovation. This study is significant in providing empirical evidence on the level of local government innovation and demonstrating that a comprehensive effort by local governments should be made to address local problems.