IDEAS home Printed from https://ideas.repec.org/a/bla/asiaps/v13y2026i2ne70072.html

Missionʼs Rudder and Sails: Analysing the Governmentʼs Entrepreneurial Functions Across Supply and Demand in Chinaʼs New Energy Vehicle Industry

Author

Listed:
  • Zhang Huiying
  • Li Yue

Abstract

Mission‐oriented innovation has emerged as a novel paradigm for tackling pressing societal and environmental challenges. Grounded in the theory of the entrepreneurial state, this study contends that governments fulfil various ‘entrepreneurial functions’—acting as directional leader, market shaper, standard setter, fund provider, risk‐taker, and model leader. This study is based on 36,052 policy application instruments implemented by provincial governments from 2014 to 2022. Results indicate that technological support and export orientation are core drivers of new energy vehicle production growth, whereas sales growth depends on a synergistic combination of subsidy‐ and non‐subsidy policy instruments, charging infrastructure construction, local production levels, and per capita disposable income. The proposed ‘supply–demand feedback loop’ and ‘policy–output’ models empirically elucidate the mechanisms by which the Chinese government guides supply‐side direction and shapes demand‐side markets. These findings offer transferable insights for policy instrument implementation in other strategic emerging industries and national contexts.

Suggested Citation

  • Zhang Huiying & Li Yue, 2026. "Missionʼs Rudder and Sails: Analysing the Governmentʼs Entrepreneurial Functions Across Supply and Demand in Chinaʼs New Energy Vehicle Industry," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 13(2), May.
    • Handle: RePEc:bla:asiaps:v:13:y:2026:i:2:n:e70072
    DOI: 10.1002/app5.70072
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/app5.70072
    Download Restriction: no
    File URL: https://libkey.io/10.1002/app5.70072?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mariana Mazzucato, 2018. "Mission-oriented innovation policies: challenges and opportunities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 803-815.
    2. Fan, Xia & Li, Chuanju, 2025. "“To be unfolding” or “be on its last legs”—Preferential tax policies between supply and demand and the development of the new energy vehicle industry based on an ABM model," Energy Policy, Elsevier, vol. 200(C).
    3. Wang, Lei & Fu, Zhong-Lin & Guo, Wei & Liang, Ruo-Yu & Shao, Hong-Yu, 2020. "What influences sales market of new energy vehicles in China? Empirical study based on survey of consumers’ purchase reasons," Energy Policy, Elsevier, vol. 142(C).
    4. Pappas, Ilias O. & Woodside, Arch G., 2021. "Fuzzy-set Qualitative Comparative Analysis (fsQCA): Guidelines for research practice in Information Systems and marketing," International Journal of Information Management, Elsevier, vol. 58(C).
    5. Tobias Kreuter & Luiz Felipe Scavarda & Antonio Márcio Tavares Thomé & Bernd Hellingrath & Marcelo Xavier Seeling, 2022. "Empirical and theoretical perspectives in sales and operations planning," Review of Managerial Science, Springer, vol. 16(2), pages 319-354, February.
    6. Mariana Mazzucato, 2016. "From market fixing to market-creating: a new framework for innovation policy," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 140-156, February.
    7. Matthijs J. Janssen & Jonas Torrens & Joeri H. Wesseling & Iris Wanzenböck, 2021. "The promises and premises of mission-oriented innovation policy—A reflection and ways forward," Science and Public Policy, Oxford University Press, vol. 48(3), pages 438-444.
    8. Wang, Yuanyuan & Chi, Yuanying & Xu, Jin-Hua & Yuan, Yongke, 2022. "Consumers’ attitudes and their effects on electric vehicle sales and charging infrastructure construction: An empirical study in China," Energy Policy, Elsevier, vol. 165(C).
    9. Jenn, Alan & Springel, Katalin & Gopal, Anand R., 2018. "Effectiveness of electric vehicle incentives in the United States," Energy Policy, Elsevier, vol. 119(C), pages 349-356.
    10. Egnér, Filippa & Trosvik, Lina, 2018. "Electric vehicle adoption in Sweden and the impact of local policy instruments," Energy Policy, Elsevier, vol. 121(C), pages 584-596.
    11. Azarafshar, Roshanak & Vermeulen, Wessel N., 2020. "Electric vehicle incentive policies in Canadian provinces," Energy Economics, Elsevier, vol. 91(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Janssen, Matthijs J. & Abbasiharofteh, Milad, 2022. "Boundary spanning R&D collaboration: Key enabling technologies and missions as alleviators of proximity effects?," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    2. Emmanuelle Reuter & Florian Überbacher, 2025. "Coping With Procedural Uncertainty: Firms' Procedural Framings and Political Strategies in the Context of Switzerland's Mission‐Driven Energy Policy," Business Strategy and the Environment, Wiley Blackwell, vol. 34(2), pages 2511-2528, February.
    3. Bellink, Miriam & Verburg, René W., 2023. "A system lock-in blocks the uptake of mixed sustainable Eucalyptus plantations in Brazil," Land Use Policy, Elsevier, vol. 134(C).
    4. Janssen, Matthijs J. & Abbasiharofteh, Milad, 2022. "Boundary spanning R&D collaboration: Key enabling technologies and missions as alleviators of proximity effects?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 180.
    5. Alali, Layla & Niesten, Eva & Gagliardi, Dimitri, 2022. "The impact of UK financial incentives on the adoption of electric fleets: The moderation effect of GDP change," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 200-220.
    6. Laatsit, Mart & Grillitsch, Markus & Fünfschilling, Lea, 2025. "Great expectations: The promises and limits of innovation policy in addressing societal challenges," Research Policy, Elsevier, vol. 54(3).
    7. Jinru Wang & Zhenwu Shi & Jie Liu & Hongrui Zhang, 2023. "Promoting “NEVs Pilot Policy” as an Effective Way for Reducing Urban Transport Carbon Emissions: Empirical Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-24, July.
    8. Yao, Xusheng & Ma, Shoufeng & Bai, Yin & Jia, Ning, 2022. "When are new energy vehicle incentives effective? Empirical evidence from 88 pilot cities in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 207-224.
    9. Wen, Wen & Yang, Shuo & Walker, Richard M. & Zhou, Peng, 2025. "Effectiveness of collaborative policy tools for promoting electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 192(C).
    10. Wiarda, Martijn & Sobota, Vladimir C.M. & Janssen, Matthijs J. & van de Kaa, Geerten & Yaghmaei, Emad & Doorn, Neelke, 2023. "Public participation in mission-oriented innovation projects," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    11. Yang, Chi & Qian, Lixian & Liu, Miaomiao, 2026. "Impact of government policies on the electric vehicle industry, environment, and society: A systematic review," Technology in Society, Elsevier, vol. 85(C).
    12. Austmann, Leonhard M., 2021. "Drivers of the electric vehicle market: A systematic literature review of empirical studies," Finance Research Letters, Elsevier, vol. 41(C).
    13. Matthijs Jansen, 2022. "Legitimation and Effects of Mission-Oriented Innovation Policies: A Spillover Perspective," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 7-28, December.
    14. Odeh Al-Jayyousi & Hira Amin & Hiba Ali Al-Saudi & Amjaad Aljassas & Evren Tok, 2023. "Mission-Oriented Innovation Policy for Sustainable Development: A Systematic Literature Review," Sustainability, MDPI, vol. 15(17), pages 1-21, August.
    15. Suarsana, Laura & Schneider, Tina & Warsewa, Günter, 2023. "Do regional innovation strategies meet societal challenges? A comparative analysis across regions in Belgium, Germany, Netherlands and Finland," Schriftenreihe Institut Arbeit und Wirtschaft 40/2023, Institut Arbeit und Wirtschaft (IAW), Universität Bremen und Arbeitnehmerkammer Bremen.
    16. Anne Rainville, 2022. "Green Public Procurement in Mission-Orientated Innovation Systems: Leveraging Voluntary Standards to Improve Sustainability Performance of Municipalities," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    17. Francesco Molica, 2025. "Reassessing Cohesion Policy Through the Lens of the New EU Industrial Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 63(1), pages 302-319, January.
    18. Guo, Shuocheng & Kontou, Eleftheria, 2021. "Disparities and equity issues in electric vehicles rebate allocation," Energy Policy, Elsevier, vol. 154(C).
    19. Di Wang & Yuman Li, 2022. "Measuring the Policy Effectiveness of China’s New-Energy Vehicle Industry and Its Differential Impact on Supply and Demand Markets," Sustainability, MDPI, vol. 14(13), pages 1-16, July.
    20. Gifford, Thomas & Barbier, Edward, 2026. "The role of charging infrastructure and income on electric vehicle adoption," Energy Policy, Elsevier, vol. 211(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaps:v:13:y:2026:i:2:n:e70072. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=2050-2680 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.