Based on theoretical and empirical research, this authoritative book explains why, how and under which conditions innovative policies are achievable in multilevel governance. Taking a forward-thinking approach, the book also addresses implications of the rise of multilevel governance for research and practice. Arthur Benz explores multilevel governance both in relation to and beyond governments' responses to an increasing complexity of public policies. Chapters analyse how political authority is divided and policies have to be coordinated across jurisdictional boundaries. Utilizing case studies on energy and climate policy in transnational, national and local contexts, and on fiscal equalization in federations, Benz illuminates the interplay of policy change and institutional change, as well as the particular conditions that enable or constrain these mechanisms. The book concludes that complexity in multilevel systems of governance does not rule out policy innovation, but rather it establishes both favourable and constraining conditions for significant change. Providing an overview of theories of multilevel governance, this book will be critical reading for scholars and advanced students of political science and public administration. It will also be beneficial for policymakers interested in complex governance.