The construction of the Hubei Pilot Free Trade Zone is a systematic exploration and strategic practice to comprehensively deepen reforms and expand opening-up in the new stage of development. From the perspectives of dynamic evolution theory and institutional change, transaction cost theory of institutional economics, and public goods supply and demand in public economics, this paper systematically studies the theoretical logic and practical significance of institutional innovation in the pilot free trade zone. The study finds that the Hubei Pilot Free Trade Zone has carried out a series of in...