Nowadays, several problems exist in the environmental industry in our country, like small size of enterprise, lack of core technology, excess supply in medium and low end products, and insufficient supply of high quality products. The supply from environmental industries apparently failed to meet the increasing demands of environmental governance. This paper conducted a case study in Yixing, the national largest environmental industrial base, to analyze the characteristics and causes of above problems, summarize the strengths and weaknesses of government and enterprise reform and innovation, and put forward some countermeasures and suggestions for supply side reform in the environmental industry. |