Government subsidies and innovation in new energy vehicle companies: An empirical study of new energy vehicle listed companies based on Shanghai and Shenzhen A-shares

Abstract

The panel data of 50 new energy vehicle enterprises in Shanghai and Shenzhen A-shares from 2012 to 2021 are selected to empirically analyze the impact of government subsidies on the innovation of new energy vehicle enterprises and to further discuss the differences between such an impact in different forms and regions. The study finds that, first, government subsidies have a certain promotion effect on the innovation of new energy vehicle enterprises, and an inverted U-shaped relationship exists thereof. Second, at the enterprise level, government subsidies have a significant effect on the innovation of non-state enterprises, downstream vehicle enterprises, and enterprises with lower establishment years, and the inverted-U trend is evident. Third, at the regional level, government subsidies have a more significant effect on the innovation of enterprises in non-eastern regions and low-environmental regulation regions, and the inverted-U-shaped relationship trend is more apparent. The study establishes the nonlinear relationship between government subsidies and the innovation of new energy vehicle enterprises through empirical research, which expands the theory of enterprise innovation and has a certain guiding significance for improving the innovation capability of new energy vehicle enterprises in the future.

Complex effects of cooperative behavior on authorized remanufacturing supply chain decisions under subsidies

“…At present, the effects of government subsidies on enterprise decision-making are mainly studied by two methods: empirical research and mathematical modeling. In the empirical research method, the possible economic impact of government subsidy policies mainly includes the effect of government subsidy on enterprise innovation [41][42][43], enterprise antirisk ability, enterprise performance, industrial chain efficiency [44][45][46], etc. Shi et al [47] studied the impact of government subsidies on the labor productivity of enterprises under the upstream and downstream market forces of strategic emerging industries.…”

Interplay of Government Support and Foreign Investment in Enhancing R&D in China’s Strategic Sectors

“…However, it has funding limitations, uncertainties, and information gaps. Government subsidies can strengthen internal resources or outside funding while mitigating external difficulties (Audretsch & Belitski, 2020;Sun et al, 2023;Sung, 2019;Wang & Sawur, 2022). Although strategic emerging industries have promise, they also face obstacles, which is why different government support programs are designed to encourage innovation and maximize resource use.…”