Circular Economy, Open Innovation, and Green Innovation: Empirical Evidence From Prefecture-Level Cities in China

Article

Ai, H., Islam, N., Mangla, S. K., Song, M. and Tan, X. 2024. Circular Economy, Open Innovation, and Green Innovation: Empirical Evidence From Prefecture-Level Cities in China. IEEE Transactions on Engineering Management. 71, pp. 5706-5719. https://doi.org/10.1109/TEM.2024.3357350
AuthorsAi, H., Islam, N., Mangla, S. K., Song, M. and Tan, X.
Abstract

In this article, we explore whether and how circular economy policies stimulate green innovation. At the dawn of this century, China launched the circular economy pilot policy (CEPP). Using the panel data of 284 Chinese prefectures, we estimate the effect of this pilot policy on green patent applications. Our findings indicate a significant positive effect of CEPP on green patent applications, including green invention patents and green utility model patents. Mechanism analysis shows that CEPP significantly increases government attention on science and technology and promotes economic agglomeration, which further provides a more conducive environment for market entities to innovate through open innovation. Further heterogeneous analysis reveals that the impact of CEPP on green innovation is greater in southern and developed cities, cities with greater education resources, and cities that are less dependent on natural resource endowments.

JournalIEEE Transactions on Engineering Management
Journal citation71, pp. 5706-5719
ISSN0018-9391
1558-0040
Year2024
PublisherIEEE
Digital Object Identifier (DOI)https://doi.org/10.1109/TEM.2024.3357350
Publication dates
Online01 Feb 2024
Publication process dates
Deposited20 Mar 2024
FunderNational Natural Science Foundation of China
Natural Science Foundation of Hunan Province
Postgraduate Scientific Research Innovation Project of Hunan Province
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