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Against the backdrop of the knowledge economy,global economy is going through 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. Chinas economy growth has been rapid for decades since the reform and opening up policy, but this has also been a great drain on Chinas resources and the environment,which is an ur-gent problem to tackle.In recently years,the Chinese govment 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 innovation is 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 while like a U-curve.In order to solve this problem,I decided to analyze the panel data from 30 provinces in China between 2008 and 2014 and conclude that local govance can implement environmental regulations while having a positive impact on the technological innovation in enterprises.In the conclusion,suggestions are given to local govments on how to better en-force environmental policies.