The Study On The Relationship Between Government Subsidies And R&D Investment In New Energy Automobile Industry

With the coming of global energy crisis and the gradual deterioration of the ecologic environment,the development and application of automobiles with new energy have become the center point for the automobile industries of many countries,the automobile products will be on the direction of safe,energy-saving,environment protection.Automobiles with new energy have become the research target for many countries,major automobile production nations and corporations worldwide have strengthened their R&D input of automobiles with new energy and their application.And this field is also one of our country's strategic emerging industries.As it concerns national energy security,energy saving and pollution reduction,transformation and upgrading of the automobile industry,economic stimulation and other factors,it is of great importance and thus our country attaches great importance to it,as a result,a lot of related policies have been established to support its development.Until 2016,the number of automobiles of new energy in China has reached to 517 thousand,with 507 being sold,both of which ranks the world No.1 for the past two consecutive years.Meanwhile,the number of accumulated automobiles of new energy which have been promoted in China has reached 1 million,which accounts for half of the world total number,among which,the automobiles with pure electricity are the majority ones.The industry of automobiles of new energy is experiencing significant development,though China has becomes the world leader in terms of the production and sales,there are still many hidden problems,for example,there is still breakthrough to be made in terms of the core technology in this industry,many enterprises put more attention to the scale instead of R&D,they are still too dependent on national subsidy,which threatens the healthy and sustainable development of this industry.How to promote enterprises to put more energy to R&D to improve its core competence is the key to the healthy and sustainable development of this industry.Problems such as external,spillover effect and financing limit will restrain the investment enthusiasm of enterprises on R&D.Subsidy from the government on R&D can,on one hand,give out the signal to improve the financing ability of enterprises;on the other hand,it can benefit the investment on R&D for enterprises by reducing the cost and risk of the investment on R&D.For a long time,in order to the development of this industry,China's government has been giving cash subsidy to related enterprises in the initial period of R&D;it also has been carrying out purchase subsidy during the promotion period to enlarge its market and its industrialization.However,can government subsidy help to improve the R&D in the industry of automobiles of new energy? What kind of effect does it have on the R&D behavior? These are questions we need to discuss in details.This article focuses the behavior of R&D investment of enterprises concerning automobiles of new energy.It discusses how the industry groups decide R&D investment under different kinds of government subsidies.Different from the method of previous researches,which use enterprise data to make the proof and analysis,this article builds a model of evolutionary game of R&D investment behavior from the industry based on physical option,and it analyzes situations such as the one without government interference,the one with direct government subsidy and the one with government subsidy in a way of market expanding,from which we can deduce the state of equalization of this kind of enterprise group.Based on the characters in this industry,it uses imitation of Matlab value to illustrate the state of equalization.This article also tries to collect data from related listed enterprises to carry out empirical test on the model.The conclusion of the article can give related advice to decision makers in this industry,and help them to think about the government behavior in an original way as well as supply a reference for the establishment of subsidy policy in the industry in the future.The main research content is divided into 7 chapters,with each being:The first chapter is about introduction.It comes up the research background of choosing the topic of R&D investment in this industry and its research meaning,as well as introduces the research mindset,method as well as content briefly.The second chapter is about related theories and literature review.It introduced the theoretical basis concerning the research in details,which include theory of facts which affect the R&D investment behavior of the enterprise,theory of government interference as well as the investment of uncertainties.When summarizing these theories,the theoretical structure for this research came into being.In terms of the literature review,it summarizes the methods,conclusions and their advantages and disadvantages from previous researches,which lays a great foundation for the future research.The third chapter is about the analysis on the current situation of the R&D investment in this industry.Firstly,it analyzes the basic situation of the industry development both internationally and domestically.Then it concludes,collects and illustrates the government subsidy policies on the industry in different periods in China.Finally,it analyzes the current situation of the R&D investment in the industry.The fourth chapter is about the game analysis on the R&D investment on the industry based on physical option.According to the characters of the industry in China,it analyzes that its R&D investment will face different kinds of uncertainties,it builds the model of evolutionary game based on exchange option.Based on the model hypothesis and the game process,it analyzes the R&D investment behavior of this industry without government interference,which gets the state of equalization of the R&D investment behavior in this industry.The fifth chapter is about the government subsidy and the evolutionary game analysis on the R&D investment in this industry.Based on the structure of exchange option,it analyzes equalization of R&D investment in this industry under the government direct subsidy on R&D investment as well as subsidy on market expansion.By using the Matlab,it carries out the value imitation from the models under the situation without government interference,the one with direct government R&D subsidy,the one with subsidy on market expansion,and finally illustrates the model results.The sixth chapter is the empirical test on how government subsidy affects the R&D investment behavior in this industry.After collecting date from related listed enterprises,this chapter builds a regression analytic model.By using the data analyzing software,STATA,it carries out empirical test on the model conclusions deduced in the fifth and sixth chapter.The seventh chapter is about summary and expectation.Based on the model analytic conclusion and the empirical test results,it summarizes and illustrates the relationship between government subsidy and R&D investment behavior in this industry.And it points out the limitations of this research and carries out the expectations on the research direction in the future.This article gets meaningful conclusions after building and analyzing the models.1.At the initial development stage of the new energy automobile industr,y When there is no government interference,as the market value of the industry barely exists,then the state of equalization is no R&D investment,which shows from the side the importance of the government interference in the initial development of this industry.2.When the government adopts the subsidy of market expansion,as the expansion will increase the market value of this industry,so it can promote enterprises in this industry to choose to invest on R&D,as a result,it changes the state of equalization of the evolutionary game of the enterprise groups.The subsidy of market expansion will improve the value of related projects and thus it promote the R&D investment of enterprises concerning this industry,3.In the initial development period of this industry,the government should give direct R&D subsidy,which can promote related enterprises enter the equalization of self R&D.And when the market value of this industry reaches certain equalization and scale,the market will promote the enterprises to be more active in the R&D investment.At this point,if the government continues to carry out direct R&D subsidy,it will have a bad effect on the self R&D of the enterprises as some of the enterprises will make use of the government subsidy to invest on the R&D.By using the data from the listed enterprises in this industry,it carries out the empirical test on the relationship between government subsidy and the R&D investment in this industry.It is found that currently,the industry in China is still in the initial period,in which the government subsidy will have a positive effect on the R&D investment in this industry.Expanding the industry value will also promote the R&D investment of the enterprises,but whether the market subsidy can really enlarge this industry is a question to be discussed.Research and discuss factors which affect the government subsidy and its effect is meaningful in terms of helping government to improve the efficiency of R&D subsidy.This article will research questions mentioned above in details,it builds and analyzes the models based on previous researches,with main innovation points being:1.In the research of the relationship between R&D investment of enterprises and government subsidy,it firstly discusses that the government subsidy of market expansion has an effect on the R&D investment behavior in the enterprises,and then carries out different levels of researches.When it is discussing how government subsidies affect the R&D investment behavior,it considers the direct subsidy as well as the subsidy of market expansion,which enriches the research concerning how the government subsidy affects the effect of R&D investment of the enterprises.2.This article firstly builds the structure of evolutionary game concerning the R&D investment of groups of enterprises in this industry based on the physical option.After comprehensive analysis on current situation of the development of automobiles of new energy,it discusses key elements that affect R&D project value,such as technological development,battery and oil price,laws,regulations and policies,market and characters of the project and their uncertainties.It also carries out systematic analysis on recognition of the physical option and settling method of the index for the R&D project concerning the industry,which provides a new mindset for the investment in this industry: exchange option.And it also comes up with a more reasonable investment decision-making method with different stages.Meanwhile,by using the model,it analyzes how government subsidy affect on the R&D investment behavior in this industry,which provides a new research thought and method in terms of the research on the relationship between government subsidy and R&D investment of enterprises.3.This article comes up with new conclusion in terms of the relationship between government subsidy and R&D investment of enterprises.After building the structure of evolutionary game concerning the R&D investment of groups of enterprises in this industry based on the physical option,it gets to the conclusion: effect of the government subsidy on R&D investment of enterprises varies in different development period,that is to say,its effect is connected with the market value of the industry,meanwhile,as there exists the government subsidy of market expansion,its effect will be more complicated.