Influence Of Government Subsidies On Enterprise Green Innovation

Green sustainable development has become an indispensable part of China’s construction and development,green innovation has injected fresh blood into green sustainable development.Energy conservation and environmental protection enterprises as an important place for green innovation research and development,the 12th Five-Year Plan has put it in the "New Seven areas" the most concerned first.Since the 19th National Congress of the Party,environmental protection enterprises have taken green technological innovation as the main driving force to realize the rapid expansion of industrial scale and ushered in the heyday of development.Although environmental protection enterprises are strongly supported by national policies,there are still many difficulties to be faced by environmental protection enterprises in China,such as weak green independent innovation ability,insufficient R&D investment,large financing constraints,excessive dependence on industrial policies,and so on.These problems are the realistic factors that restrict environmental protection enterprises to climb another high building.In this way,we need to be clear,what is the impact of government subsidies on green innovation in environmental protection enterprises?What ways does government subsidy affect the green innovation of environmental protection enterprises?This paper first combs the relationship between government subsidy and green innovation,and then explains the necessity of government subsidy to environmental protection industry from externality theory and signal theory.The data of A listed environmental protection companies in China in 2012～2019 are selected as samples.Two specific transmission mechanisms are tested:stepwise regression method is used to test the intermediary role of R&D investment between government subsidy and green innovation.The addition of interactive items verifies that government subsidies regulate financing constraints and green innovation.On this basis,the heterogeneity between state-owned environmental protection enterprises and non-state-owned environmental protection enterprises is further discussed.It is found that government subsidies can significantly improve the level of green innovation of environmental protection enterprises.And in the path of government subsidies to promote green innovation of environmental protection enterprises,R&D investment has play ed a part of the intermediary role,facing the financing constraints of enterprises,government subsidies have also played a regulatory role.It shows that the incentive effect of government subsidy on green innovation of environmental protection enterprises will be realized by increasing R&D investment,and at the same time,government subsidy will weaken the restraining effect of financing constraints on green innovation of environmental protection enterprises.Compared with non-state-owned environmental protection enterprises,the promotion of R&D investment is more significant.In conclusion,this paper proposes that the government should adhere to the general direction of government subsidy enterprise innovation;the government should subdivide the green subsidy fund to the enterprise when implementing the subsidy,on the one hand,it can make the use of the fund more standardized and controllable,on the other hand,it will also release a positive signal to attract external investors to inject more funds into the enterprise to ease the financing constraints;Strengthen the subsidies and technical support to non-state-owned environmental protection enterprises;Enterprises should also establish a sense of long-term development and focus on green innovation research and development that can improve the competitiveness of enterprises.