Abstract Using A-share listed companies’ data from 2010 to 2016, this study explores the impact of “dual regulation” on firms’ innovation. The results show that “dual regulation” has significantly promoted the innovation input and innovation output of state-owned enterprises. At the same time, the “dual regulation” has also significantly promoted the innovation efficiency of state-owned enterprises. Further research found that the optimization of corporate governance and the increased preference of executives’ political promotion might become the influencing mechanism under the background of “dual regulation”.
