Against the backdrop of the knowledge economy, global economy is goingthrough a major transformation. How to alleviate the pressure of resources and the environ-ment and to achieve the sustainable development of the economy has become a global agenda.China＇ s economy growth has been rapid for decades since the reform and opening up policy,but this has also been a great drain on China＇ s resources and the environment, which is an ur-gent problem to tackle. In recently years, the Chinese government has launched many environ-mental policies in the hope of encouraging technological innovation to guarantee the sustain-able development of the economy. However, research suggested that technological innovationis negatively correlated with environmental policies in most scenarios. In some cases, the num-ber of technological innovation decreases after policies take effect and increases after a whilelike a U - curve. In order to solve this problem, I decided to analyze the panel data from 80provinces in China between 2008 and 2014 and conclude that local governance can implementenvironmental regulations while having a positive impact on the technological innovation inenterprises. In the conclusion, suggestions are given to local governments on how to better en-force environmental policies.