Abstract:Institutional environment, factor market distortion will play an important impact on green innovation technical progress rate. In this paper, using stochastic frontier analysis (SFA)method based on translog production function we calculated the green innovation technical progress rate of 30 provinces and cities in China, and then using the System GMM method which can effectively controlled the endogeneity problem estimated the effect of institutional environment, factor market distortion and other factors on the green innovation technical progress rate. We found that: the green innovation technical progress rate of Chinese industrial sectors shows an overall upward trend, compared to the western provinces, eastern provinces with the higher level of economic development did not show a higher rate of green innovation technical progress; the optimizationSof institutional environmentSandSthe cultural qualitySlevel of regional residents have a positive impact on innovation technical progress rate; the factor market distortion, government funding to innovation activities, capitalization of innovation factors, the increasing proportion of labor costs are not conducive to innovation technical progress rate, and the effect of Enterprises’ own funds is not obvious. Therefore,Sfurther optimization of Sinstitution environmentSof innovation, fully playing the marketSprice mechanismSto improve theSallocation efficiency of factors, improvingS the treatment andSinnovation enthusiasm of researchers are the key to the subsequent introduction of innovation policy.