Abstract:The "environmental pollution-economic development" circle is a problem in the process of national sustainable development. As a complex concept of environmental protection and technology innovation, green technology innovation is the key to cracking this strange circle. This paper divides green technology innovation into green product innovation and green process innovation and measures green technology innovation based on the perspective of energy saving and emission reduction. Furthermore, we examine the effects of environmental regulation and government R&D funding on green technology innovation. The empirical findings are as follows: (1) from the dynamic point of view, we test whether there is a significant "U-shaped" relationship between environmental regulation and green technological innovation, and we find there exists an "inflection point" in the role of environmental regulation in green technology innovation, and China is at the stage of inhibition before the "inflection point"; (2) direct government funding and tax incentives can promote green technology innovation, but the promotion of government tax incentives to green technology innovation is not significant; (3) the interaction between environmental regulation and government R&D will promote green product innovation and inhibit green process innovation, which is closely related to the imbalance of environmental regulation intensity in energy saving and emission reduction. In addition, this paper also gives out three kinds of control variables (the level of regional development, the proportion of the regional manufacturing industry, and the development level of regional export-oriented economy) and presents their effects on green technology innovation.
Purpose The purpose of this paper is to compare the effects of equity financing and debt financing on technological innovation, and prove that the enhancement of a financing system’s risk tolerance for technological innovation can enhance the innovation risk preference of enterprises and thus promote innovation. Design/methodology/approach This study is based on a transnational sample of 35 developed countries from 1996 to 2015, by using the panel econometric model to empirically examine the effects of two financing modes on innovation. Findings The findings showed that equity financing, which has higher risk tolerance, has a more positive impact on innovation than debt financing in terms of both economic uptrend and economic downtrend, and that government efficiency plays a significant role in supporting the performance of technological innovation. Originality/value The paper provides a research framework for examining how a financing system’s risk tolerance capacity affects the development of technological innovation through promoting risk preference among enterprises. This paper provides transnational and cross-cycle comparative evidence that equity financing with a strong risk tolerance capacity can better support technological innovation, even in periods of economic downtrend. Moreover, the importance of financing system’s risk tolerance capacity for innovation during economic crises is discussed.
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