Do National Eco-Industrial Demonstration Parks Promote Corporate Green Innovation? The Role of the Green Innovation Ecosystem

Abstract

The establishment of National Eco-industrial Demonstration Parks (NEIDPs) represents a prominent industrial policy for fostering green development in China, yet its causal effects on corporate green innovation (CGI) remain underexplored. This study investigates the impact of NEIDPs on CGI using a multi-period difference-in-differences model with data from Chinese A-share listed companies over 2007–2019. Our results show that NEIDP establishments significantly promote CGI, particularly high-quality green innovation, and this finding is robust to multiple robustness tests. Mechanism analyses indicate that the policy works by building a green innovation ecosystem that facilitates industry-academia collaboration, inter-enterprise technology exchanges, and tax incentives. Heterogeneity analyses reveal stronger policy effects for firms located in central and western regions, high-tech and non-heavy-polluting industries, state-owned enterprises, and those in new energy demonstration cities. Conversely, the policy inhibits CGI in non-high-tech industries and exerts no significant impact on heavy-polluting firms. Based on these findings, we propose policy recommendations for leveraging NEIDPs to enhance corporate green innovation, emphasizing targeted support for disadvantaged groups and tailored measures for different industrial sectors.