This paper studies the sectoral innovation of antidepressants in traditional Chinese medicine (TCM) within the framework of logic competition between TCM and Western Medicine (WM). We find that with the entry of WM antidepressants the whole sector of TCM antidepressant is restructured. We argue that the coexistence of plural logics can stimulate sectoral innovation by injecting a new logic into each component of the innovation system. Existing sectoral actors innovate by referring to the competing logic to reinterpret their own logic and practice. In so doing they reshape sectoral practices and competitiveness.