China’s Industry–Finance Collaboration Pilot in Stimulating Corporate Green Innovation

The Industry–Finance Collaboration Pilot (IFCP) integrates governmental green guidance with digital collaboration platforms to promote non-equity-based cooperation between industrial and financial sectors. Using a Difference-in-Differences (DID) approach and a sample of A-share listed industrial firms on the Shanghai and Shenzhen Stock Exchanges from 2011 to 2023, this study examines the IFCP’s impact on corporate green innovation (GI). Results show that the IFCP increases the number of green patent applications by 7.5% on average, indicating its effect in stimulating GI. This effect operates through two main mechanisms. First, under governmental green guidance, the IFCP encourages local green fiscal subsidies, increases green investor participation, improves environmental information disclosure, and lowers agency costs. Second, through digital finance empowerment, it mitigates information asymmetry and transaction costs in financial activities, thereby reducing credit costs and enhancing firms’ access to green credit. The effect of the IFCP on GI is more pronounced in regions with stricter environmental regulation, in pollution-intensive industries, and among firms with smaller asset sizes. Further analysis indicates that the IFCP primarily stimulates tactical, low-value GI driven by compliance or opportunistic motives, rather than promoting substantive, high-quality innovation. This study provides empirical evidence and policy insights into how governmental green guidance and digital finance empowerment can jointly promote green industrial development.