The Impact of China’s Solar Energy Industry Technology Innovation on Corporate Performance and Implications for Sustainable Development

Climate-relevant technological innovation in renewable energy sources, such as solar energy, is essential for mitigating climate change and achieving sustainable development. The recent literature highlights substantial patent activity in China’s solar energy industry, which may contribute to the sector’s success in international markets. This study examines the relationship between patent activity and corporate financial performance in China’s solar energy industry from 2012 to 2022 using panel data analysis. The results indicate that patent applications positively impact firms’ corporate performance, showing a time-lag of approximately 6–7 years. Notably, this positive impact is particularly pronounced for firms located in the eastern region and state-owned enterprises. Additionally, we investigate whether CEO duality affects the relationship between patent applications and firms’ corporate performance, seeking to reveal unique development pathways within the industry. These findings are important for understanding how China’s solar energy sector can advance along sustainable development pathways amid the challenges of climate change.