Technological innovation, market proximity, and China's industrial green development

ABSTRACT: Due to environmental damage and natural resource scarcity, the promotion of industrial green development to spur the industrial economy is of concern to many countries. We construct a theoretical framework of technological innovation, market proximity, and industrial green development and subsequently test it empirically. First, the results reveal that technological innovation is beneficial to industrial green development; technological innovation has a positive impact on industrial green development in adjacent regions through technology spillover, but human capital spillover has the opposite effect; the international market can effectively promote industrial green development, but the domestic market does the opposite. Second, the interaction between technology spillover, human capital spillover, and domestic and international markets is beneficial to industrial green development. However, the interaction between domestic and international markets imposes an inhibitive effect on industrial green development. Based on the findings, we make recommendations to improve the level of industrial green development