Research On The Impact Of Environmental Regulations And Government Subsidies On Technological Innovation Of Enterprise

Since the reform and opening up,China has experienced more than 40 years of significant development,but the rough economic development model has led to many environmental problems,thus how to protect the ecological environment under the premise of economic development has become an urgent problem in the context of new development.Additionally,in recent years,the global technology blockade and trade protection incidents have been frequent,and the problem that hinder the country’s development in the field of high technology has become one of the main factors affecting economic security.How to effectively balance the relationship between economic growth,environmental management and technological innovation to achieve high-quality and sustainable economic development is a major challenge for China.The research on environmental regulation and enterprise technological innovation has always been a hot topic in academic,but there is no unified conclusion.This paper mainly focuses on whether environmental regulations can promote enterprise technological innovation,whether government subsidies can adjust the effect of environmental regulations on enterprise technological innovation and its regulatory mechanism.Firstly,this paper focuses on the relevant literature on environmental regulation,enterprise technological innovation,government subsidies and enterprise technological innovation,and organizeds the main research views and conclusions.Secondly,taking government subsidies as an intermediary variable and incorporate it into the impact mechanism of environmental regulation and enterprise technological innovation for analysis,and put forward the hypothesis of this paper.Finally,this paper selects the panel data of A-share manufacturing listed companies from 2007 to 2020,constructs an intermediary effect model,and empirically tests the transmission mechanism of the impact of government subsidies environmental regulations on corporate technological innovation by using the fixed effect method.Through theoretical research and empirical analysis,the following conclusions are drawn: there is a significant negative correlation between environmental regulation and enterprise technological innovation,there is a “U”-shaped relationship and is on the left side of the curve.The government subsidies have a positive regulatory effect between environmental regulation and enterprise technological innovation.The transmission path of “environmental regulation-government subsidies-enterprise technological innovation” has been verified.In addition,from the perspective of corporate heterogeneity,there are differences in the impact of environmental regulations on technological innovation in manufacturing.It is easier for weak financing constraints to improve the negative impact of environmental regulations on technological innovation,and the mediating effect of government subsidies is verified in enterprises with weak financing constraints.Environmental regulations have a significant effect on the technological innovation level of non-state-owned enterprises,and state-owned enterprises have less motivation to change to better environmental protection governance;the crowding-out effect of key monitoring enterprises is more obvious.In terms of industry and regional heterogeneity,environmental regulation significantly improves the level of technological innovation of clean enterprises,and the mediation effect of government subsidies is verified.The non-pilot regions are more negatively affected by environmental regulations,and the positive moderating effect of government subsidies is obvious in the region.Based on the conclusions,this paper proposes several policy suggestions to provide some reference for achieving environmental protection and economic growth.First,assessing and improving the effects of environmental regulations,which are combined with innovations to improve production will contribute to a shift in the relationship between environmental regulations and enterprises’ technological innovation from suppression to promotion.Second,the coordination of various government policies should be strengthened to give full play to complementary effects.Third,due consideration should be given to the heterogeneity of enterprises,so as to set reasonable environmental regulations to stimulate enterprises to improve the utilization of production resources.