How to rely on market mechanism for achieving industrial sustainable development is an important issue both to current scholars and policymakers. Technological innovation is regarded as a mediator to construct a driving mechanism that flexible environmental policy affects sustainable development from the "narrow" perspective of Porter's hypothesis. Meanwhile, environment regulatory enforcement is introduced as a moderator to explore the institutional scenario that drives sustainable development of China's industry. Then we have adopted industrial panel data of 30 provinces in 2006-2015 and emp...