The Relationship Between Policy Drivingand Innovation Performance Ofenterprises

Renewable energy has been one of the most important key strategies to address sustainable development and to solve increasingly prominent issues of global energy and climate. Technology innovation benign to environmental preservation, however, is of high risk, long cycle length and low output, which makes renewable energy industry low at market competitiveness, compared to general industries.It is necessary to make support policies to stimulate related businesses and firms to make progress in innovation and improve in environment management.In this study, the listed companies of China's renewable energy are studied. The count of patents applied by these companies is introduced as the production measure. Whether the ISO14001 certification is authorized is introduced as the procedure measure. By quantifying the policies related to renewable energy and applying regression analysis and cluster‐two regression, the relationship between policy‐driven force and innovation of enterprises has been studied. The result shows that policies play an important and significant role in encouraging environmental innovation. High marketization level also is a key factor that increases innovation performance.According to the result, encouraging policies are necessary for guiding the development of renewable energy industry and balancing the positive external effects of renewable energy and the negative external effects of traditional fuel energy. Meanwhile, further enhancement in marketization level should be taken.