Analysis of the impact of financial subsidies on R&D investment of new energy vehicle enterprises based on threshold regression

Abstract

According to the news, a huge section of the current profit of NEV enterprises is attributed to state subsidies, while the state's financial subsidies for new energy vehicles have been decreasing year by year, showing a continuous downward trend. To remove the dependence of new energy companies on financial subsidies and make them more competitive in the future, their innovation and technological progress are particularly important. This paper investigates the impact of fiscal subsidies on NEV companies’ R&D investment intensity of different scales through threshold regression and concludes that as the scale of enterprises expands, the motivating impact of fiscal subsidies on the R&D investment intensity of companies will achieve a qualitative leap at a certain point, and puts forward relevant suggestions for fiscal policy designation, refines the implementation methods and targets of fiscal subsidies, and offers some recommendations for the new energy vehicle industry's future sustainable growth. Additionally, it clarifies the objectives and implementation strategies for financial subsidies and offers some support for the future sustainable growth of the new energy vehicle sector.