When power is shared from the national and local countries, what is it known as?

Federalism.

Explanation:

The term "Federalism'' refers to the sharing of power between the states and the central or national government. The reason for this is to make sure that power is evenly distributed and not centralized towards a particular group(although this has been changing over time as more power is being shifted to the central or national government).

The distribution of power between the state governments and the central or National Government is backed up by the Articles IV and V of the Constitution of the United States of America.

answer; by working independently, the states have a high likelihood of developing innovative solutions that can be employed in other states;