Study On The Relationship Between Environmental Regulation,Government Support And Enterprise Innovation Efficiency

Since the reform and opening up,China has focused on economic development,while ignoring the serious environmental pollution problems,in order to change the existing extensive economic development,the state tried to impose environmental pressure on enterprises to achieve environmental and economic"Win-win" effect.In addition,the Chinese ordinary people have begun to pay attention to environmental issues and the media on China’s various types of pollution incidents reported transparency is also increasing,which is evolving into an increasingly large informal environmental regulation.The existence of environmental regulation will inevitably bring to the enterprise cost of governance,weaken the profits,occupy the enterprise R&D investment,However,the innovation drive under the new normal of our economy requires enterprises to seek ways to reduce environmental costs and promote enterprise innovation efficiency under strict environmental regulations.At this time,if government support is obtained,it can better solve the restriction of the relationship between environmental regulation and enterprise innovation efficiency.This paper reviews the domestic and foreign literature and summarizes the theoretical basis of environmental regulation and government support on the impact of corporate innovation behavior.At the same time,based on the game theory,this paper establishes the game relationship between the government,enterprises and the public.In the empirical part,using the micro-level data of 104 listed companies in manufacturing industry from 2011 to 2016,this paper investigates how formal and informal environmental regulation affects the efficiency of enterprise innovation under different government support way including direct subsidies and tax incentives.And the sample is divided into two types of pollution-intensive and cleaner production,to explore the different types of enterprises.The results show that:(1)The empirical results of the whole sample show that the relationship between the intensity of formal environmental regulation and the innovation efficiency of enterprises is inverted U,while the media attention shows a significant negative relationship with the innovation efficiency of enterprises.The public attention And enterprise innovation efficiency presents "U" type,the government direct subsidy has no obvious effect on the efficiency of enterprise innovation,and enterprise tax incentives can significantly promote the efficiency of enterprise innovation.When the direct government subsidy is higher,the formal environmental regulation has a significant negative impact on the innovation efficiency of enterprises,while the public attention has a significant positive impact on the innovation efficiency of enterprises.When the government tax incentive is high,media attention shows a significant negative impact on the innovation efficiency of enterprises.(2)If the type of manufacturing listed companies is high-tech,when the direct government subsidies are higher,the formal environmental regulation will have a significant positive impact on the innovation efficiency of enterprises.(3)If the type of manufacturing listed companies is low-tech,when the direct government subsidies are higher,the public’s attention will have an significant positive impact on the innovation efficiency of such enterprises,when the tax incentives intensity is high,the media attention has a significant negative impact on the innovation efficiency of such enterprises.Finally,based on the empirical results,this paper presents the corresponding policy recommendations,as well as existing shortcomings and future research directions.