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This study combines learning, knowledge management and innovation theory to develop an integrated model of production innovation in transition China. We analyze the model using a structural equation model approach, and 208 manufacturing and service firms in China are selected as the samples of this study. The results conclude that: (1) The higher the level of learning orientation, the higher the level of knowledge energy; (2) knowledge energy positively affects production innovation; (3) learning orientation has no significantly impact on production innovation. Finally, implications for researchers and practitioners are presented.