Political Connections,Government Subsidies And Corporate Green Technology Innovation

With the proposal of the dual-carbon strategy,strengthening environmental governance and control has become one of the current focuses of China.The 19th National Congress of the Communist Party of China(NCCPC)emphasized the need to comprehensively promote green and sustainable technological innovation and drive sustainable economic development with green innovative development.As the core and main body of the national scientific and technological innovation system,the improvement of the level of green technological innovation is of great significance.In the actual economic operation,there may be some degree of political connections between enterprises and the government.Generally speaking,when enterprises establish relations with the government,they have more institutional capital and can obtain information and resource advantages.Naturally,they can increase investment in green research and development(R&D)and improve the level of green innovation.However,some studies have put forward the opposite view,arguing that improper government intervention may also bring the resource curse effect.It can be seen that there is still controversy over the relationship between political connection and green technology innovation in the academic circle.Therefore,this thesis continues to study the influence of political connection on green innovation of enterprises.This thesis selects the data of A-shares listed companies from 2009 to 2018,and constructs an intermediary effect model based on entrepreneur institutional capital theory,social network theory and technological innovation theory to test the impact of political connection on Green Innovation.In order to reflect the impact of different degrees of political relevance on enterprise green innovation,this thesis assigns political relevance from high to low according to the administrative level of Representatives,committee members and other organ cadres,and respectively investigates the different effects of political connections between the chairman and the general manager,and takes into account the regulation of institutional environment.In addition,considering the influence of enterprise level factors on the effect of political relevance,this thesis further makes a relevant heterogeneity analysis.The empirical results show that political connection has a positive impact on enterprise green technology innovation,and the higher the degree of political relevance,the more obvious the effect on green innovation.And the government subsidy plays an indirect role in promoting green innovation,while the institutional environment plays a negative role in regulating the impact of political relevance.In the heterogeneity analysis of enterprise ownership,it is found that political relevance can significantly promote green innovation in state-owned enterprises,but has no significant impact in non-state-owned enterprises.Secondly,the grouping regression results of enterprise scale show that political relevance plays a promoting role in green innovation only in large-scale enterprises.The heterogeneity analysis results of heavy pollution industries show that the political connection of non-heavy pollution industries plays a more obvious role in promoting green innovation.Finally,this thesis finds that the effect of the chairman’s political connection is significantly better than that of the general manager.According to the research conclusion,in order to create a better relationship between government and business and improve the level of green technology innovation of enterprises,this thesis puts forward policy suggestions such as improving the socialist market economic system,coordinating the role of government and market in green innovation,further stimulating market vitality and strengthening entrepreneurship.