Abstract: Abstract: In the context of green economy, more and more enterprises choose green technology innovation to gain competitive advantage in the market. Current research shows that under the perspective of green technology innovation, consumer awareness of environmental protection and government subsidies can be treated as two key factors for market and government drive for green technology innovation, and both of these factors havesignificantly impact on enterprises’green technology innovation decisions. The driving factors and action timing of enterprises’ green technology innovation are analyzed based on consumer environmental awareness and government green subsidies. Based on consumer demand theory, the duopoly competition model and the Stark-berg model including green products and ordinary products are conducted under different government subsidies. It is shown that consumers’ awareness of environmental protection can significantly improvethe market share of green products and corporate profits, while increasing of unit cost will reduce the market share and corporate profits of green products. It is found that there is an inverted U-shaped relationship between the unit cost of green products and the profits of ordinary product enterprises. This research indicated that government subsidies for green products can promote enterprises’ green technology innovation. In this essay, it is also found that either subsidize consumers or enterprises generate same effect on the market share and total social welfare of products,however while considering the implementation cost of subsidies, it is better to subsidize consumers. It is pointed out that green product manufacturers have the highest market share of green products and the highest overall social welfare when they were followers in the market. Therefore, the backwardness strategy is the better competitive strategy for enterprises’ green technology innovation. This research can provide useful suggestions for the government to formulate green subsidy policies and enterprises to formulate green technology innovation strategies.

Key words: green technology innovation； government subsidies； consumer environmental awareness； social welfare