2.1. Literature Review
(1) Research on Breakthrough Technological Innovation
Our research on breakthrough low-carbon technological innovation is divided into two parts: domestic research and foreign research. The first is related research abroad. Dismukes put forward that most of the innovations in the rising interval of an S-shaped curve are breakthrough low-carbon technological innovations, and the innovation process is divided into innovation prospects, design blueprints and standard designs [
7]. Zhou et al. think that companies with a deep knowledge base are more capable of developing breakthrough innovation through market knowledge acquisition rather than internal knowledge sharing [
8].
Foreign scholars’ research on low-carbon technological innovation is mostly based on the theory of technological innovation, and their scientific research results mainly focus on influencing factors and innovation models. According to the existing innovation theory, Hellstrom analyzed Schumpeter’s innovation types and models, and found that most of the current environmental innovations are gradual innovations [
9]. Crawford et al. discussed the main influencing factors of technological innovation in energy savings and emission reductions from five angles: governments, enterprise organization, policies, regulations and technical analysis and design, and put forward corresponding improvement measures [
10]. Park’s research states that China’s investment strategy for scientific and technological innovation often leads to technological dependence, thus reducing the scale of scientific and technological R&D investment, and thus, affecting the sustainable development of technology [
11]. On the other hand, it is domestic. Compared with foreign scholars, Chinese scholars’ research in this field started late, and high enthusiasm has not been sustained. Chen Jin and others believe that high-tech industries are more suitable for breakthrough technological innovation [
12]. Chen et al. took China Company as an example to conduct an empirical analysis from the perspective of strategy and organization. The results show that both organic organizational structure and explorer strategy are helpful in improving the level of breakthrough low-carbon technological innovation [
13].
(2) Research on Carbon Trading Policy and Low-carbon Technological Innovation
Carbon trading policy is a kind of market-driven environmental regulation. As early as the early 1990s, Porter put forward the famous “Porter Hypothesis”, arguing that environmental regulation policy can effectively encourage enterprises to carry out technological innovation. Scholars’ research on the innovation effect of low-carbon technology in foreign carbon markets mainly focuses on the European market. Green and others have studied the manufacturing industry in Britain and verified the validity of the Porter Hypothesis [
14]. Johnstone and Labonne studied OECD countries and proved that strict environmental control can drive enterprises’ innovative R&D activities [
15]. Galeotti et al. took the data of 19 countries as samples, and their research results show that an increase of the strictness of environmental regulation policies will prompt enterprises to carry out more technological innovations [
16]. Calel and Dechezlepretre’s research found that the influence of the EU’s carbon trading market on emission control enterprises increased year by year, and carbon trading policy did promote the low-carbon technological innovation of enterprises [
17]. From the perspective of the “Narrow Porter Hypothesis”, Yuan and Zhang investigated the driving mechanism of flexible environmental regulation policies for sustainable development, and found that flexible environmental regulation had an obvious positive effect on technological innovation [
18]. Cainelli et al. believe that environmental regulation policies have played an important role in promoting innovation in recycling, reducing waste and reducing the use of materials [
19].
Wang et al. took seven provinces and cities with carbon emission trading pilots as their research object, measured low-carbon technological innovation by determining the number of patent applications and studied the impact of carbon trading on the level of low-carbon technological innovation using the comprehensive control method. Their results showed that the carbon trading pilots promoted the innovation of low-carbon technology as a whole [
20]. Tan et al. explored how carbon trading policies affect the upgrading of industrial structure using the intermediary effect method, and found that carbon trading policies have a positive effect on promoting technological innovation through research [
21]. Liao et al. studied the relationship and mechanism between carbon trading policy and green economy development, and found that policies can stimulate technological innovation and promote the development of enterprises [
22]. Xiong et al. divided the technological innovation of enterprises into internal research and development and external introduction. Through empirical analysis, it was found that the carbon trading market plays an important role in promoting the technological innovation of industrial enterprises in China [
23]. Meng et al. believe that a single carbon trading policy will not promote the low-carbon technological innovation of enterprises in the long run [
24].
At the same time, the impact of carbon trading policy on low-carbon technological innovation shows heterogeneity. Wei et al. used the double difference model to discuss the impact of carbon trading on green technological innovation in China, and conducted a heterogeneity analysis according to the property rights and industries of enterprises. Their research shows that carbon emission trading has a significant promoting effect on the technological innovation of private and non-high-tech industries in China [
25]. Ye et al. used the data of listed companies to empirically test the impact of carbon trading systems on enterprise innovation using the triple difference model. The empirical results show that carbon trading policy only has a significant positive effect on the innovation of large-scale enterprises, but not on small-scale enterprises [
26]. Zhou et al. found that carbon trading pilot policies induced low-carbon technological innovation in the western region, but carbon trading policy did not induce low-carbon technological innovation in the eastern and central regions [
27].
(3) Research on Influencing Factors of Breakthrough Low-Carbon Technological Innovation
By examining the existing research results, it was found that low-carbon technological innovation is influenced by many factors, such as carbon tax policy, environmental regulation, R&D expenses, R&D personnel investment, enterprise decision-making, etc. Zhao analyzed China’s industrial enterprises and thought that environmental regulation could promote the low-carbon technological innovation of enterprises [
28]. By analyzing the power source framework of low-carbon technological innovation, Chen et al. found that China’s low-carbon technological innovation is influenced by the market, technology and policy support [
29]. Based on 229 manufacturing enterprises, Li et al. found a relationship among IT technology progress, government IT policies, IT capabilities and process innovation power sources, and found an influence of IT power sources on process innovation [
30]. Zhang et al. believe that the training of low-carbon technology R&D personnel also plays an important role in the development of low-carbon technology [
31]. Through the empirical analysis of enterprise data, Shi found that China’s low-carbon technological innovation is mainly affected by R&D investment, technological R&D investment, personnel training, entrepreneurial leadership and low-carbon technological innovation strategies [
32]. Xu et al. adopted a GMM estimation method, and the results show that China’s carbon tax policy has obviously promoted technological innovation, but its effect shows regional differences [
33].
2.2. Theoretical Analysis
Carbon trading policies make carbon emission rights a commodity, allowing them to be traded in the market, and if a company’s carbon emissions exceed the carbon quota provided by the government, then the company must go to the carbon market to buy carbon quotas; if a company’s carbon dioxide emissions are lower than the government-provided quota, it can make more profit by selling carbon allowances. According to the Porter Hypothesis, carbon trading policies can encourage companies to carry out low-carbon technological innovation, offset some or all of their environmental costs, and produce innovation compensation effects. Carbon trading policies will encourage companies to make a trade-off between purchasing carbon allowances and technological innovation, and when the cost of purchasing carbon emission allowances is higher than the cost of low-carbon technological innovation, companies will choose to carry out low-carbon technological innovation. Due to the instability of carbon prices due to market fluctuations, in order to reduce risks, companies will be more inclined to carry out low-carbon technological innovation. At the same time, in order to obtain additional benefits, enterprises will also tend to carry out low-carbon technological innovation to reduce carbon emissions and sell carbon allowances in the carbon market. In summary, carbon trading policies can promote low-carbon technological innovation, and their impact mechanism is shown in
Figure 1.
Compared with progressive low-carbon technologies, breakthrough technologies can establish new technologies and production methods that significantly reduce carbon dioxide emissions, thereby greatly reducing environmental costs and leading to additional profits. As a result, the assumptions in this article are as follows:
Hypothesis 1 (H1).
Carbon trading policies can promote breakthrough low-carbon technological innovation in pilot areas.