On Causes Of The Failure Of Industrial Policy's Implementation

Under the system of fiscal decentralization,industrial policy,as a tool to promote the upgrading and transformation of local industries,has greatly stimulated the participation of local governments in enterprise management.At the same time,enterprises will selectively carry out R&D investment activities under the temptation of high government subsidies.As one of the national strategic emerging industries,the new energy automobile industry has developed rapidly in recent years with the vigorous support of the government,and is favored by the capital of listed companies.With the strong support of the government,the number of new energy vehicle production and sales and power battery patents in China have increased rapidly.However,due to information asymmetry,more and more inferior company have entered the field of new energy vehicles under the temptation of huge subsidies,which has reduced the allocation efficiency of government funds and caused waste of industry resources.A large number of literatures have studied the important role of government subsidy policies in promoting the development of emerging industries.Due to the positive externalities and high costs of R&D activities,industrial policies can compensate for the losses of enterprises in this respect,and to some extent help enterprises to bear the risk of partial R&D investment.However,the subsidy policy seems to “squeeze out” the interest of enterprises in research and development,causing the company to “cheat up and make up”.With the decline of subsidies in the new energy auto industry,market forces are stimulating and forcing companies to invest resources in product R&D and innovation.The existing research discusses the impact of industrial policies on micro-enterprise behaviors from the aspects of financing environment,innovation efficiency and market reaction.It has been demonstrated that industrial policies may or may not promote innovation,but the literature only gives theoretical logic,did not give a realistic path.The problem that this article wants to answer through the case of J&R Optimum Energy is that the reason why industrial policy can't motivate enterprise innovation is that under the information asymmetry,industrial policy will induce the opportunistic behavior of enterprises,which leads to the falsehood of enterprises only to obtain policy dividends.This kind of innovation is not the original intention of industrial policy,and leads to the failure of industrial policy's implementation.At the first sight,the reason why J&R Optimum Energy has fallen to the point where the company has a risk of delisting is that the outbreak of the debt crisis,corporate capital flows are broken.But the appearance of the debt crisis is actually the result of Kennedy's reverse customization and insufficient R&D investment.This paper verifies that the behavior of J&R Company deviates from the objective of industrial policy from both positive and negative aspects: on the one hand,it analyzes the “reverse customization”trading mode that J&R Company can adopt to create battery sales,and digs out this kind of The essence of the “reverse customization” behavior is an opportunistic behavior;on the other hand,from the perspective of analyzing the research and development of the company,it is confirmed that it is not enough for R&D and innovation activities compared with other companies in the same industry.Therefore,in the case of J&R Optimum Energy,the government subsidies brought by industrial policies have not effectively improved the innovation ability of enterprises,and have no obvious incentive effect on the R&D activities of enterprises.Instead,they have urged enterprises to produce false sales behaviors that cater to policy dividends,reducing the efficiency of resource allocation.The research shows that the new energy companies will be affected by the policy dividend and produce opportunistic behavior during the operation process,but will be eliminated by the market with the diversification of the subsidy policy.Therefore,the government should consider strengthening the incentive to enterprise spirit,and adopt guiding enterprise aspirations to improve the core technology R&D capability of new energy enterprises.