Green Finance and Corporate Green Innovation: A Systematic Literature Review

Green finance and corporate green innovation have become pivotal in addressing ecological and environmental challenges amidst worsening global environmental conditions. This study aims to provide a systematic explanation of the factors through which green finance promotes corporate green innovation. By qualitatively synthesizing 42 studies published between 2019 and 2024, the research identifies four key factors influencing this relationship. These include two direct aspects—financial support and policy guidance—and two indirect aspects—financing constraints and term restructuring. The analysis reveals a research gap in market-based financing, where most studies focus on credit financing, while discussions on diverse instruments like green bonds and green equities remain limited. Additionally, the impact of policy uncertainty, particularly on long-term investment decisions is underexplored. Existing research primarily emphasizes easing financing constraints, with limited attention to how green finance can also support green innovation by extending funding horizons through term restructuring. Future research should focus on these areas to deepen understanding and enhance practical applications.