The article explores how different types of environmental regulations affect green innovation behavior in industrial areas. It suggests that strict environmental rules can boost companies' interest in green innovation. The study finds that controlling regulations have a bigger impact on green innovation intention than incentive-based ones. It also shows that being close to other industries can help spread green knowledge and technology, encouraging more companies to innovate in environmentally friendly ways. This research provides a foundation for businesses to adopt cleaner practices and for governments to create policies supporting sustainable development.