A perspective of government investment and enterprise innovation: Marketization of business environment

Entrepreneurship has become an essential for countries to promote the marketization of the business environment and accelerate economic growth in the post-epidemic era. Based on the investigation of 31 provincial-level panel data in China, this paper concludes that entrepreneurship plays a significant role in promoting the marketization of the business environment. Further research found that the level of government research and development (R&D) funding and regional innovation capabilities are intermediary variables that affect the marketization of the business environment and have a threshold effect. When the government R&D funding crosses the second threshold, every 1% increase in regional innovation capabilities decreases the degree of marketization by 0.197%. Therefore, it is crucial to rapidly streamline the administration process and delegation of power, optimize the government’s administrative efficiency, and give full play to the entrepreneurial spirit to promote the economy’s sustainable development.