Innovation is vital for the logistics industry. This paper develops a Daoism-based conceptual model for logistics innovation in China. It identifies research gaps in this area and provides directions for future research. Following a content-based literature review methodology, 45 studies were selected. We identified five research themes: interpretation of logistics innovation; Chinese institutional environment for logistics innovation; innovation generation; innovation adoption; and innovation capability. We integrate the process view and outcome view of logistics innovation and propose that logistics capability, as an innovation outcome, is reflected and measured by innovation generation and adoption. This study is probably one of the first conceptual development papers on logistics innovation in China, providing a model for innovation within this context. It provides new avenues of research in this emerging, albeit important, area of research. Our conceptual framework utilizes Chinese Daoism philosophical thinking to provide a new lens for logistics innovation that is sensitive to the cultural environment.