Double-threshold effect of technological innovation on environmental-responsibility fulfillment: Evidence from high-polluting SMEs in China

Abstract

This paper investigates the double-threshold effect of technological innovation on the environmental responsibilities of Chinese small- and medium-sized enterprises (SMEs) in high-polluting industries. A data set of 381 high-polluting Chinese SMEs from 2012 to 2018 was analyzed using panel-threshold effect models. The results show that technological innovation has a double-threshold effect on the environmental-responsibility fulfillment of high-polluting Chinese SMEs. The impact of technological innovation on environmental responsibility is significantly positive only when R&D investment intensity is within the interval between the first and the second thresholds. This study highlights the importance of technological innovation for high-polluting SMEs. It also provides suggestions for both policymakers and SME managers.

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