Green process innovation, green product innovation and its economic performance improvement paths: A survey and structural model

Green technology innovation is an important driving force for high-quality development in China. Recently, much attention has focused on the connotation, influencing factors and mode selection of green technology innovation, yet few studies have systematically tested the transmission paths between green technology innovation and economic performance. Green technology innovation can be divided into green process innovation and green product innovation, both of which can improve the environmental and economic performance of enterprises. Drawing on previous research, this study constructs a model of economic performance transmission for green technology innovation and upgrading, and conducts an empirical analysis based on data from 642 industrial enterprises in China. The results show that green process innovation and green product innovation can effectively improve the economic performance of enterprises. The environmental performance and market competitiveness of enterprises are important mediating variables in the paths of economic performance improvement. An enterprise's green process innovation can positively promote green product innovation, and there is also room for technological innovation upgrading. There are two main differences in the transmission paths for different types of green technology innovation: (1) Green process innovation can improve economic performance directly, whereas green product innovation can only do this indirectly; (2) In most cases, the path from green product innovation to economic performance is more important than that from green process innovation to economic performance. This study deepens understanding of the green technology innovation process and has implications for optimizing policy design for green development.