Science Research Management ›› 2015, Vol. 36 ›› Issue (5): 65-71.

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20 Years of Porter Hypothesis-A literature review on the relationship among environmental regulation, innovation and competitiveness

Yu Wei, Chen Qiang   

  1. School of Economics & Management, Tongji University, Shanghai 200092, China
  • Received:2013-09-09 Revised:2014-10-23 Online:2015-05-25 Published:2015-05-19

Abstract: The famous Porter Hypothesis advocates that more stringent but properly designed environmental regulation can trigger innovation and then build the competitive advantage. This paper starts from the interpretation of the meaning of the Porter Hypothesis, reviews related studies from both empirical and theoretical perspectives, and then analyses the deficiencies of the previous research and points out the policy implications for the Porter Hypothesis. At last, this paper identifies the directions for future research on the relationship among environmental regulation, innovation and competitiveness, including solving data and methodological issues, strengthening dynamic test of the Porter Hypothesis as well as studies on the environmental policy design characteristics, extending the scope of research, and strengthening the empirical and applied research in China.

Key words: environmental regulation, innovation, competitiveness, Porter Hypothesis

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