Since the implementation of reform and opening-up policy, China witnessed rapid economic development and impressive economic development achievements. However, the environmental pollution situation is not optimistic. As a public item, the negative externalities of pollution are bound to be abused. The root reason of environmental problems is the market failure caused by the negative externalities of pollution, and this require the government to participate into it to correct its inefficiency and injustice in order to promote social welfare. Strengthening the regulation of the resources and environment of the government and improving the effectiveness of regulation is still a very important issue in the process of industrialization in China (Jinbei, 2009).
Economic development and environmental protection seems to be a paradox or a dilemma. Under the framework of static analysis, In the framework of static analysis, the traditional neoclassical economic theory considers that environmental protection and economic development are mutually converse to each other, and the implementation of the environmental regulation is in essence a balance between the needs of social environmental protection and the burden (cost) of the enterprise (Ambec and Barla, 2002), so that they hold the idea that environmental regulation will have a negative impact on the enterprise. That is, strengthen environmental protection will increase the private costs of enterprises, occupy the enterprise’s innovative resources, and ultimately affect the manufacturers of productivity and competitiveness. However, in the dynamic analysis framework, the "Porter hypothesis" regards that rational environmental regulation can stimulate the technological innovation of enterprise. Enterprise can obtain benefits by technological innovation, this benefits can make up or even exceed to the economic costs brought about by environmental regulation, and then improve the productivity and competitiveness. Environmental protection and enterprise productivity can achieve "win-win" (Porter, 1991; Porter and Linde, 1995). Technological innovation is the key to achieving "win-win" for economic development and environmental protection. Then, the core problem of the "Porter hypothesis" is whether environmental regulation triggers to technological innovation, and how the government develops environmental regulation to guide enterprise technological innovation is particularly critical. Before proposing policy recommendations for the government, it is necessary to clarify the following questions: how does environmental regulation affect the technological innovation of China’s manufacturing industry? Under the circumstances of limited resources to consider the conditions of input and output, how does the environmental regulation of China’s manufacturing industry impact the technological innovation efficiency? In the purpose of sustainable development to achieve the "win-win" between economic development and environmental protection, how does the environmental regulation impact the performance of the technological innovation in China’s manufacturing industry? The study of these problems provides theoretical support for the path selection of technological innovation in China’s manufacturing enterprises and provides meaningful consultant suggestions for the government to formulate appropriate environmental regulation policies. Also, it has strong theoretical and realistic meanings for realizing the concept of "innovation" and "green".
The research logic of this paper is "environmental regulation → technological innovation → technological innovation efficiency → technological innovation performance", and the research object is the Chinese manufacturing industry, which emphatically studied the above three important problems. It is particularly important to measure the intensity of environmental regulation before studying the environmental regulation of China’s manufacturing industry. At present, domestic and foreign scholars have used a variety of methods, both a single indicator and a comprehensive index. Relatively speaking, early studies used single indicator more and then comprehensive indicators are more popular in later stage. More single indicators can reflect more perspectives, and comprehensive indicators are reflected in the emissions. Taking the advantages and disadvantages of the single index and the comprehensive index into account, this paper has made some innovation in the measure of environmental regulation intensity.
In addition to use the common indicators, the indicators of the use of common indicators also increased the index of some single indicators, multi-angle multi-faceted comprehensive evaluation of environmental regulation intensity, and finally the use of maximum deviation method to integrate many indicators together.
Based on the panel data of manufacturing industry in China from 2008 to 2013，this paper analyzes the influence of environmental regulation on technology innovation from the perspective of industrial heterogeneity by using dynamic panel data model. The results showed that: (1)There was a significant inverted-U shape relationship between environmental regulation and manufacturing’s technology innovation in China , the inflection point is 0.4962; but lies in different relationships in other industries on account of industry heterogeneity; (2) The human capital has a positive impact on manufacturing technology innovation in China, but the promotion reduces when constrained by environmental regulation; (3) The impact of foreign participation on manufacturing technology innovation in China are different whether constrained by environmental regulation or not; (4) The degree of competition inhibits China’s manufacturing technology innovation. Meanwhile, there is certain inertia in the. That is, the current China’s manufacturing technology innovation will be affected by that of previous. Finally, this paper puts forward specific suggestions to formulate the environmental regulations and policies differently as to different industries.
In the premise of limited resources, considering the input and output should consider the problem of the efficiency. This paper uses the stochastic frontier method to construct the transcendental logarithmic model to study the influence of environmental regulation on the technological innovation efficiency of China’s manufacturing industry. It is found that environmental regulation has a significant "U" type relationship with the efficiency of technological innovation in China’s manufacturing industry. With the improvement of environmental regulation intensity, the efficiency of technological innovation is first reduced and then increased. Enterprise scale, government research and development support, are directly affecting the efficiency of technological innovation in the industry; the degree of competition, the proportion of foreign capital, profit margins are negative impact on the efficiency of technological innovation. Therefore, the government should appropriately improve the intensity of environmental regulation, introduce relevant policies to encourage enterprises to become bigger and stronger, improve industrial concentration, invest more R & D funds, appropriate and reasonable introduce foreign capital, fully dig the technological innovation potential of low-profit-margin enterprises. At the same time, the enterprises should combine their strategic development prospects of their own technological innovation with the "government will", and vigorously attract overseas R & D funds, make full use of the country is conducive to the development of the enterprise policy.
The ultimate purpose of technological innovation is to develop both the economy and the environment. Environmental regulation enhances Chinese manufacturing industries’ performance by inducing technological innovation. Based on the microscopic enterprise perspective, the World Bank’s micro-data of Chinese enterprises in 2012 and the macroscopic data at the urban level were used to test the impact of environmental regulation on the technological innovation performance of Chinese enterprises. It is found that the environmental regulation variables with the pollution index of the pollutant index can significantly promote the economic performance of the enterprise in the current period, but it will not improve the environmental performance of the enterprise. The environmental regulation of the lagging period is not conducive to corporate economic performance. Both from the region, ownership and embedded in the global value chain perspective, environmental regulation of corporate economic performance has a steady positive role in promoting the performance of corporate economy. The government establish and implement appropriate environmental regulation policies can achieve the "win-win " of economic and environmental and then promote the technological progress of our enterprises. At the same time, the government in the implementation of the future environmental regulation policy should also consider how to use environmental regulatory tools, due to the choice of environmental regulatory tools will have a heterogeneous impact on corporate performance. The future implementation of the environmental regulation system should take into account the applicability of various regulatory tools, in addition to "command - control" type of policy tools, but also need to use "market incentive" policy tools, and then "help enterprises to achieve the win-win of environmental and performance". The government can guide enterprises to innovate through tax incentives, more investment and other ways. It is particularly important to find that the implementation of more stringent environmental regulation by the government does not "squeeze" the innovation activities of enterprises, and companies will tend to adopt different innovative ways to compensate for the increase in costs due to environmental regulation. Different ways of innovation are the influence of environmental regulation on the innovation performance of enterprises. It is noteworthy that the measurement of environmental regulation variables will affect the regression results.
Finally, the conclusion of the study of the full text is summarized and refined as the conclusion of this paper which provides some suggestions for improving the environmental policy system of China and puts forward some policy suggestions based on the government and enterprise perspective.