Research on the impact of environmental regulation on enterprise technology innovation—an empirical analysis based on Chinese provincial panel data

Under the pressure of environmental degradation and resource depletion, Chinese companies are confronted with the need for transformation and upgrading promoted by technological innovation. However, environmental regulation can help to promote technological innovation. Based on the panel data of China’s 30 provincial levels during 2009–2016, firstly, this paper describes the connotation of environmental regulation and measurement intensity of the regulation. Then, the anti-driving effect of environmental regulation on enterprise technology innovation is analyzed. Finally, this paper analyzes the spatial heterogeneity of environmental regulation on enterprise technology innovation. The empirical results are as follows: (1) formal environmental regulation has effectively enhanced technological innovation of enterprises. However, informal environmental regulation generally can positively drive enterprise technology innovation. (2) The impact of environmental regulation on technological innovation of enterprises is spatially heterogeneous. On the one hand, the impact of formal environmental regulation on technological innovation has significant regional differences. The Eastern China generally supports the “Porter hypothesis,” while the Middle of China and Western China have the opposite performance. On the other hand, there is a threshold effect between environmental regulation and technological innovation. When the economic development level of the first lagging period is used as the threshold variable, with the gradual improvement of the economic development level, the technological innovation of the enterprise has the effect of first suppressing and promoting, and then verifying the threshold characteristics of environmental regulation on technology innovation.