The purpose of this study is to explore the impact of dynamic adaptation of corporate innovation culture and market demand on corporate sustainable development and the differences in corporate types and regions. The research sample covers 150 listed companies and 100 non-listed companies in eight industries and three economic regions: the eastern coastal area, the rise of central China, and the development of the western region from 2015 to 2020. The theoretical framework is constructed using the system dynamics model, and the empirical methods of multivariate regression analysis such as ordinary least squares, fixed effect model, and instrumental variable method are used for research. The main findings include that there is a significant positive synergistic relationship between corporate innovation culture and market demand, and there are differences in development models among enterprises of different types and regions. These results have important policy implications and can provide reference for the National Development and Reform Commission, the Ministry of Industry and Information Technology and other relevant departments to formulate policies such as industrial guidance and innovation incentives, help enterprises achieve sustainable development, and enhance the competitiveness of the national industry.
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