Environmental Regulation And Innovation Of Enterprises

Using the bidirectional fixed effect model,this paper precisely estimates the different incentive effect of the environmental regulation policy on the innovation of industrial enterprises above designated size in different parts of our country from 2008—2016,and it’s found that in terms of the eastern part of our country,there exists a “U shape” correlation between environmental regulation strength and the innovation of industrial enterprises above designated size,and to be specific,when the average pollution treatment costs of the eastern-region enterprises are lower than 17.0% of their total production costs resulting form the implement of the environmental regulation policy,the environmental regulation policy shows significant restrictive effects upon the innovation of the enterprises,but instead,when the average pollution treatment costs of the enterprises exceed 17.0% of their total production costs resulting form the implement of the environmental regulation policy,the environmental regulation policy then shows significant promoting effects upon the innovation of the enterprises.In terms of the western part of our country,there exists a “inverted U shape” correlation between environmental regulation strength and the innovation of industrial enterprises above designated size,and concretely,when the average pollution treatment costs of the western-region enterprises are lower than 62.3% of their total production costs resulting form the implement of the environmental regulation policy,the environmental regulation policy shows significant promoting effects upon the innovation of the enterprises,but instead,when the average pollution treatment costs of the enterprises exceed 62.3% of their total production costs resulting form the implement of the environmental regulation policy,the environmental regulation policy then shows significant restrictive effects upon the innovation of the enterprises.While in terms of either the middle or the whole part of our country,there exhibits no explicit correlation between environmental regulation strength and the innovation of industrial enterprises above designated size.Further more,using the threshold effect model,this paper explores the regionally heterogeneous effects of the “support conditions for innovation”(own capital,outside available capital and the R&D personnel)on the innovation-incentive path to the environmental regulation,and it’s found that none of the three “support conditions for innovation” shows a significant threshold effect in terms of the eastern part of our country,which suggests a large compensating bonus space of the environmental regulation policy.In terms of the middle part of our country,both the two capital support conditions of the three “support conditions for innovation” show a significant threshold effect,while the R&D personnel shows no significant threshold effect,and moreover both a lower level for the abundance of the own capital and a higher level for the abundance of the outside available capital can indeed contribute a larger bonus space of the environmental regulation policy and of the above the outside available capital exhibits a stronger effect compared with the own capital.In terms of the western part of our country,both the outside available capital and the R&D personnel show a significant threshold effect,while the own capital shows no significant threshold effect,and moreover both a higher level for the abundance of the outside available capital and a lower level for the abundance of the R&D personnel can indeed contribute a larger bonus space of the environmental regulation policy and of the above the R&D personnel exhibits a stronger effect compared with the outside available capital.