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Fiscal subsidy policies and enterprise R&D investment: Sustainable exploration of China’s new energy vehicle industry

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  • Ban, Ge
  • Wang, Yun

Abstract

This study investigates the impact of government subsidy policies on research and development (R&D) investment in the new energy vehicle (NEV) industry, revealing heterogeneous effects across different contexts. Using panel data from China’s A-share listed NEV enterprises spanning 2014–2023 and employing a fixed effects model, we observe that government subsidies markedly enhance R&D investment. The impact is particularly considerable for midstream “three-electric” enterprises owing to their crucial technological roles. The effect of subsidies varies by enterprise lifecycle stage with more pronounced effects observed during growth and development stages. Furthermore, enterprise scale has a moderating effect and larger enterprises leverage subsidies more effectively. The findings of this study emphasize the importance of tailored subsidy policies to maximize their effectiveness. The government shall continue to uphold the current subsidy policy and to develop a differentiated strategy, leveraging the advantages of large enterprises, enhancing policy precision, and promoting international cooperation and technological exchange.

Suggested Citation

  • Ban, Ge & Wang, Yun, 2026. "Fiscal subsidy policies and enterprise R&D investment: Sustainable exploration of China’s new energy vehicle industry," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325026261
    DOI: 10.1016/j.frl.2025.109377
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