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External Knowledge Sourcing and Green Innovation Growth with Environmental and Energy Regulations: Evidence from Manufacturing in China

Author

Listed:
  • Jian Hou

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Heng Chen

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Jianzhong Xu

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

Abstract

This paper adopts the slacks-based measure-directional distance function (SBM-DDF, 2009) method for deriving the “Green Innovation Growth” rates of 28 manufacturing industries in China. The results indicate that the overall level of green innovation growth in China’s manufacturing is relatively low, with a declining trend. The tradeoffs among energy, environment and economy are rather sharp, and the “Porter Effect (1995)” (environmental regulation will promote green technology innovation) is not currently realized quickly in manufacturing. These evaluations imply an unsustainable development model in China, with significant differences among industries. By using a dynamic panel threshold model and employing an industry-level panel dataset for 2008–2014, we show that external knowledge sourcing has a significant negative impact on green innovation growth but with different constraints on R&D levels among industries. With the strengthening of R&D levels, gradually surpassing “critical mass”, the negative role of external knowledge sourcing in driving this mechanism becomes smaller and smaller; it has a non-linear relationship with the “threshold effect”. Consequently, we provide insights into the relationship among energy consumption, environmental pollution and technology innovation, and show how the heterogeneity of the R&D threshold affects differences in external knowledge sourcing and green innovation growth. These insights lead to a better understanding of the driving force, realizing path and policy design for green innovation growth.

Suggested Citation

  • Jian Hou & Heng Chen & Jianzhong Xu, 2017. "External Knowledge Sourcing and Green Innovation Growth with Environmental and Energy Regulations: Evidence from Manufacturing in China," Sustainability, MDPI, vol. 9(3), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:342-:d:91461
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    3. Angelidou, Sofia & Mount, Matthew & Pandza, Krsto, 2022. "Exploring the asymmetric complementarity between external knowledge search and management innovation," Technovation, Elsevier, vol. 115(C).
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    5. Silvia Martelo-Landroguez & Gema Albort-Morant & Antonio L. Leal-Rodríguez & Belén Ribeiro-Soriano, 2018. "The Effect of Absorptive Capacity on Green Customer Capital under an Organizational Unlearning Context," Sustainability, MDPI, vol. 10(1), pages 1-20, January.
    6. Zhijun Feng & Bo Zeng & Qian Ming, 2018. "Environmental Regulation, Two-Way Foreign Direct Investment, and Green Innovation Efficiency in China’s Manufacturing Industry," IJERPH, MDPI, vol. 15(10), pages 1-22, October.
    7. Bo Zeng & Meng Zhou & Jun Zhang, 2017. "Forecasting the Energy Consumption of China’s Manufacturing Using a Homologous Grey Prediction Model," Sustainability, MDPI, vol. 9(11), pages 1-16, October.
    8. Chenggang Wang, 2022. "Green Technology Innovation, Energy Consumption Structure and Sustainable Improvement of Enterprise Performance," Sustainability, MDPI, vol. 14(16), pages 1-21, August.
    9. Zhongju Liao & Siying Long, 2019. "Can interfirm trust improve firms' cooperation on environmental innovation? The moderating role of environmental hostility," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 198-205, January.
    10. Jian Hou & Yifang An & Hongfeng Song & Jiancheng Chen, 2019. "The Impact of Haze Pollution on Regional Eco-Economic Treatment Efficiency in China: An Environmental Regulation Perspective," IJERPH, MDPI, vol. 16(21), pages 1-18, October.
    11. Xionghe Qin & Debin Du, 2017. "Do External or Internal Technology Spillovers Have a Stronger Influence on Innovation Efficiency in China?," Sustainability, MDPI, vol. 9(9), pages 1-17, September.
    12. Zhijun Feng & Wei Chen, 2018. "Environmental Regulation, Green Innovation, and Industrial Green Development: An Empirical Analysis Based on the Spatial Durbin Model," Sustainability, MDPI, vol. 10(1), pages 1-22, January.
    13. Yong He & Peng He & Feifei Xu & Chunming (Victor) Shi, 2019. "Sustainable tourism modeling: Pricing decisions and evolutionarily stable strategies for competitive tour operators," Tourism Economics, , vol. 25(5), pages 779-799, August.
    14. Wei Sun & Yufei Hou & Lanjiang Guo, 2018. "Analyzing and Forecasting Energy Consumption in China’s Manufacturing Industry and Its Subindustries," Sustainability, MDPI, vol. 11(1), pages 1-26, December.

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