Policy Pathways for Promoting Green Innovation in Small and Medium-Sized Enterprises (SMEs) in the Era of Green Development: Evidence From Segmented Market Leaders

To align with the global demand for green transition, addressing the green innovation bottlenecks faced by SMEs and cultivating segmented market leaders to boost green innovation performance have become critical directions in global policy-making. Existing studies have shown that the enabling effect of policy instruments on green innovation relies on multi-dimensional synergies, a feature that is particularly crucial for segmented market leaders with limited resources. This study employs a multi-period difference-in-differences (DID) model to empirically analyze Chinese listed firms, aiming to examine the impact of segmented market leader cultivation policies on corporate green innovation. The results indicate that such cultivation policies significantly promote corporate green innovation. In terms of the underlying mechanism, this study demonstrates that these cultivation policies drive corporate green innovation by alleviating financing constraints, optimizing the human capital structure, and accelerating digital transformation. Heterogeneity analysis shows that the promotional effect of these policies is more pronounced for manufacturing enterprises, firms located in eastern China, and non-state-owned enterprises. This research provides policy implications for economies worldwide to foster segmented market leaders and advance green innovation.