Enterprise Innovation Leverage Via Green Credit

This chapter incorporates policy instruments into the enterprise innovation framework by analyzing the impact of green credit policies on exploratory innovation, based on data from Chinese listed firms between 2007 and 2017. The findings demonstrate that green credit policies significantly promote exploratory innovation, with especially strong effects for SOEs, capital-intensive industries, and firms located in central China. Mechanism analysis further indicates that these policies stimulate exploratory innovation by effectively increasing R&D investment. Finally, while higher financing constraints typically exert adverse effects, the influence of green credit policies on exploratory innovation becomes more pronounced as the degree of financing constraint intensifies.