Unveiling the trajectory of corporate green innovation: The roles of the public attention and government

In the ongoing pursuit of establishing a diversified environmental governance system, individuals, businesses, and various social groups are increasingly articulating their ecological demands in a conscious and organized manner. Recognizing the pivotal role of public attention (PA) in shaping business behavior is imperative for advancing a sustainable and environmentally friendly economy. Consequently, this study delves into the relationship between PA and corporate green innovation (CGI) by analyzing data from A-share industrial listed companies in Shanghai and Shenzhen spanning the years 2011–2020. The analysis employs fixed effects and a mediation model to provide a nuanced understanding of the dynamics involved. The study's findings underscore the following key points: (1) Elevated levels of public attention significantly influence CGI. (2) Government research and development (R&D) subsidies assume a regulatory role in the interplay between PA and CGI, particularly within state-owned enterprises, as well as the mining and manufacturing industries. However, it is noteworthy that an overly generous subsidy policy may inadvertently stifle corporate R&D innovation. (3) Government environmental regulations and corporate social responsibility indirectly shape the association between PA and corporate R&D innovation. Consequently, a fundamental strategy for fostering corporate green development lies in the effective management of government R&D subsidies and environmental regulations. Striking the right balance in these aspects while urging businesses to augment their sense of social responsibility is vital. This approach will pave the way for an efficient and enduring interaction system among the public, government, and companies, ultimately facilitating sustainable development and contributing to the realization of a beautiful China.