Abstract
Energy efficiency and emissions reductions are effective initiatives to address climate change and energy security. China has increased government subsidies and intellectual property protection (IPP) intensity to promote technological innovation in the renewable energy sector. This paper selects samples of geothermal, wind, and solar energy companies and examines whether the two initiatives mentioned above can improve company innovation, and assesses their action pathways. The results reveal that: (i) government subsidies can directly facilitate renewable energy enterprises’ innovative performance, and research and development (R&D) input served as a medium; and (ii) the intensity of IPP moderation needed for geothermal and solar enterprises to utilize the government subsidy to enhance innovation. The government should consider the differences of different sub-sectors of renewable energy when increasing subsidies. Better laws and policies are needed to strengthen the protection of intellectual property rights and stimulate innovation in renewable energy enterprises.
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