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Sustainability of the New Energy Automobile Industry: Examining the Relationship among Government Subsidies, R&D Intensity, and Innovation Performance

Author

Listed:
  • Xin Ma

    (School of Management, Capital Normal University, Beijing 100089, China)

  • Hong Jiang

    (Claro M. Recto Academy of Advanced Studies, Lyceum of the Philippines University, Manila 1002, Philippines)

  • Lijuan Tong

    (School of Management, Capital Normal University, Beijing 100089, China)

  • Jingyi Zhang

    (School of Artificial Intelligence and Date Science, Hebei University of Technology, Tianjin 300130, China)

  • Mengyuan Dong

    (School of Management, Henan University of Technology, Zhengzhou 450001, China)

Abstract

One of the most important factors in fostering the sustainable growth of the world economy is the global green low-carbon transition. With its effective use of resources, its high technological requirements, and its high added value, the new energy vehicle industry exemplifies the potential for sustainability. Its growth satisfies the requirements of China’s transition to an economic growth mode. This study performs an empirical analysis, using panel data from 154 new energy vehicle companies for the years 2015 to 2020. It examines the role of research and development (R&D) intensity in the impact relationship between government subsidies, R&D intensity, and innovation performance. The study’s results reveal that government subsidies have a significant positive influence on the innovation performance of enterprises, with this effect being more pronounced in non-state-owned and large-scale enterprises. Moreover, the mechanism analysis indicates that R&D intensity serves as a mediator between government subsidies and innovation performance. Based on this, this paper proposes that the government should refine the subsidy policy and should scientifically classify the enterprise standards and that enterprises should enhance their R&D capability and should develop innovation mechanisms.

Suggested Citation

  • Xin Ma & Hong Jiang & Lijuan Tong & Jingyi Zhang & Mengyuan Dong, 2023. "Sustainability of the New Energy Automobile Industry: Examining the Relationship among Government Subsidies, R&D Intensity, and Innovation Performance," Sustainability, MDPI, vol. 15(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:20:p:14794-:d:1258360
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    References listed on IDEAS

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