Abstract:    As a new innovation paradigm, green innovation has the dual externality characteristics of achieving both economic and environmental benefits. This dual externality feature requires green innovation to require stronger institutional incentives. In recent years, China has issued a series of policies and measures to support energy conservation and emission reduction and green environmental protection, especially the five development concepts of "innovation, coordination, green, openness, and sharing", which have pointed out the transformation of China′s development mode and sustainable development direction. As a powerful safeguard and restraint, the system has an important impact on China′s industrial green innovation. This influence not only reflects the direct impact of the system on industrial green innovation in the region, but also the spatial spillover effect on industrial green innovation in neighboring regions, that is, the green innovation activities in sensitive areas of the system will be affected by the adjacent regional system. At present, most of the literature studies the direct impact of institutional environment on innovation, but less on the spatial spillover effects of institutional environment.
    Based on the panel data of 30 provincial-level units in China from 2005 to 2015, this paper uses the dynamic spatial Durbin model empirical test to explore the spatial effect of institutional environment on industrial green innovation. The spatial effect is embodied and divided into direct effects and spillover effects. Institutions are a multi-dimensional abstract concept that is difficult to measure in a comprehensive and complete manner. Following the principle of representativeness and typicality, this paper decides to discuss the influence of institutional environment on industrial green innovation from three aspects: environmental control system, market system and legal system, and puts forward research hypotheses, and then conducts empirical research from the national level and sub-regional level. The conclusions of this paper include: (1) At the national level, this paper mainly discusses the direct impact of environmental control system, market system, legal system and other institutional environment on industrial green innovation and spatial spillover effects. The conclusions of the study indicate that the environmental control system environment has a significant role in promoting local industrial green innovation, and the positive spatial spillover effect on adjacent areas is also very obvious. A strict environmental control system will drive the surrounding areas to improve the level of industrial green innovation, so as not to become a "pollution shelter". In the market system environment, the level of education support and non-nationalization has a significant role in promoting local industrial green innovation, and the positive spatial spillover effect on adjacent areas is obvious. This proves that the development of industrial green innovation in China is inseparable from the support of institutions of higher learning and non-state-owned enterprises. Science and technology support has a certain degree of negative impact on industrial green innovation. This shows that the lack of independent innovation capability is still an important issue that needs to be faced at present; financial support has a certain degree of negative impact on industrial green innovation. Since the projects related to industrial green innovation have great risks, the threshold for obtaining financial support is high; the positive spatial spillover effect of openness on industrial green innovation is obvious. The low human capital in non-central areas makes the region′s economic cooperation with the central region more frequent. The direct impact of the legal system environment on industrial green innovation and the spatial spillover effect are significant. Innovation can only be more motivated if it is adequately protected by law. The above conclusions passed the robustness test. (2) At the sub-regional level, this paper mainly discusses the regional heterogeneity of the institutional environment in the areas of the Belt and Road and non-Belt and Road areas. The conclusions of the study indicate that the non-nationalization level has a reverse spatial spillover effect on industrial green innovation in the area around the Belt and Road. Lack of government support is a major factor in the lack of motivation for non-nationalization. Financial support presents a positive spatial spillover effect in the Belt and Road region and a reverse spatial spillover effect in the non-Belt and Road region. Financial support is more inclined to projects and regions that are supported by national policies. The purpose of this is to reduce investment risks.
   Compared with other researches, this paper not only explores the impact of various institutional environments on industrial green innovation, but also explores the impact of institutional environment on industrial green innovation on the overall level of the country, further from the Belt and Road region, non-Belt and Road areas. Two dimensions were explored. More importantly, this paper not only examines the direct impact of the institutional environment on industrial green innovation in the region, but also explores the spatial spillover effects of industrial green innovation in adjacent areas. This has important theoretical and practical significance for the targeted and tailored industrial green innovation capacity improvement policy.

Key words:  industrial green innovation, institutional environment, spatial effect, dynamic space Durbin model