Abstract: Starting from the peer effect, this paper explores the spillover effect of public green procurement on the green innovation in the same industry. The research has found that public green procurement has a significant industry spillover effect on corporate green innovation, that is, public green procurement can significantly improve the level of green innovation among local enterprises in the same industry that have not received procurement. This green innovation spillover effect mainly improves the green innovation in non-purchasing firms by increasing the market competition and promoting knowledge spillover among peer enterprises. The spillover effect of public green procurement on green innovation in non-purchasing enterprises shows obvious heterogeneity under different internal and external constraints: when the environmental awareness of corporate executives is stronger, the attention of analysts is higher, and when the culture of corporate cooperation is better, the spillover effect of public green procurement on green innovation of non-purchasing enterprises is more obvious. Further analyse reveals that the spillover effect of public green procurement has increased the environmental social responsibility of non-purchasing enterprises, thereby improving their environmental performance. It is necessary for the government to effectively leverage its exemplary role in green procurement, optimize the competitive market environment, and amplify policy spillover effects by establishing a multi-stakeholder coordination mechanism involving local governments and institutional investors.

Key words: government green procurement, green innovation in the same industry, spillover effect