Impacting Mechanism Of Environmental Regulation On Enterprise Technological Innovation And Its Empirical Research

Tight resource constraint and severe environment degradation make people gradually shift from a relentless pursuit of economic efficiency to the works in pollut ion control, ecological regeneration and environmental protection. Facing fastly growing appeal of ecologicalization transformation, strengthening environmental regulation has become an important measure to enhance the quality and quantity of economic and social development. At the same time, technological innovation has became the basic instrument in the process of solving contradiction between environmental problems and sustaining economic growth.This innovativeness has been the fundamental way to achieve a “win- win” situation between environmental protection and economic development. Previous literature lack of in-depth study on impacting mechanism of environmental regulation on enterprise technological innovation, empirical studies have been done from a specific application of individual perspective, less on the interacting effect, and the results were in- conclusive.Thus, in order to thoroughly implement strategic of the ecological civilization construction and innovation- driven growth, this study reviewed the related studies on the relationship between environment regulation and technology innovation. By establishing a mechanis m of mutual benefit between innovation and environment efficently connected by the environmental regulation, this study examined the impacting mechanism of environmental regulations on technological innovation, and analyzed the interactions between different environmental regulations and intensity. Using the sample from provincial data sets to do empirical test, in order to examine the non- linear nature of the relationship between different types and intensities of environmental regulations on technology innovation. This study is organized as follows:Firstly, related concepts and theoretical basis were provided, theoretical research framework was constructed. Through literature review and normative analysis, related concepts were defined, such as environmental regulation and techonological innovation; related theoretical bases were provided, including “Porter hypothesis”, externality theory and institutionalism theory. Then, based on cost-benefit analysis of the environmental regulations on technological innovation and the motivational mechanism related to such, combined with “enter-exit” Barriers to explore the reactive strategy of technolog ical innovation in response to environmental regulations. Thus, the special characteristics and locus of the enterprise technological innovation was revealed. Through these, a research framework, built with equilibrium analysis and dynamic analysis and a theoretical mathematical model, was established to study the dynamics of environmental regulations on technological innovations.Secondly, based on equilibrium analys is and evolut ionary game theory, this study examined the mechanism of the impact of environmental regulation mechanis m on enterprise technolog ical innovation. The direct effect of environmental regulation to enterprise technological innovation was anylzed, deriving from combination of “compensation effect” and “cancellation effect”. Adopting SCP paradigm and mathematical derivation, the indirect effect of environmental regulation to enterprise technological innovation was anylzed through industrial concentration, corporate environmental management, FDI and public environmental preferences. O n the basis of the theory of supply and demand, it analyzed the impacts of environmental regulation on margina l utility and marginal cost, demand and supply of enterprise technological innovation. Through finding the equilibrium by equilibrium analysis of demand and supply, it is found that the environmental regulations affect the path of technological innovation. From the perspective of evolut ion economics, based on the dynamic evolut ionary game theory, construct a two sides of dynamic game model of government and enterprises, and tripartite game model of government, enterprises and the public, to do theoretical analysis.C ombining numerical analysis, it is found that environmental regulation and the choice of enterprise technological innovation strategy is a game process of mixed strategy equilibrium.Furthermore, by studying the impacts of different environmental regulations and policies on the enterprise technological innovation, it revealed the different effects of the impact of regulatory policies on technological innovation. Based on the model with pre- stated assumptions, it is possible to find the set of polic ies that optimize social welfare. This also allows for considering the command control types of environmental regulation po licy tools and market incentives based environmental regulation policy tools for optimal balanced policy regime. Under this, it is possible to understand the impacts of various policy regimes have on different conditions and locus of technological innovationFinally, a dynamic regression models was built to study the direct and interacted indirect impact of environmental regulation on technological innovation, innovation efficiency. Based on the different types of environmental regulation policies and technological innovation, selected and established the corresponding index system; an index system based on GML productivity index method was developed to measure technological innovation efficiency of enterprises in different provinces with environmental regulations. Taking the data sets from 2003 to 2011 in various provinces and in the western, eastern and central regions as sample to do empir ical analysis, a nonlinear relationship existed. And it analyzed environmental regulation?s effects on enterprise technological innovation through intermediary variable based on the intermediary effect analysis. At last, recommendations on environmental regulation regimes were developed to encourage technological innovation and enhance the innovative efficiency.