As for the academics and policymakers, more attention has been given to the issue on how to drive green development of the manufacturing through regulations and innovations. We construct the extended Crépon-Duguet-Mairesse (CDM) model and employ the panel data of Chinese manufacturing industries during 2003–2014 to examine the effects of environmental regulation on industrial innovation and green development. The findings reveal that (1) in the long term, environmental regulation has crowded out R&D investment. (2) Environmental regulation has inhibited patent outputs so that ...
