The Impact of Government Subsidies on R&D Investment of China's New Energy Vehicle Listed Companies —— Based on the Perspective of Industrial Chain

Using the data of Chinese A-share new energy vehicle listed companies, this paper investigates the impact of government subsidies on firm’s R&D investment from the perspective of industrial chain. The results show that government subsidies have significant incentive effect on R&D investment of upstream and midstream enterprises. Further tests document that “consumption subsidy reduction policy” stimulates R&D investment of new energy vehicle enterprises, especially that of upstream enterprises. The findings of this paper have strong policy implications for Chinese government formulating subsidy policy to promote balance development of the whole new energy vehicle industry