Research On The Influence Of New Energy Vehicle Subsidy Policy On Enterprise R&D Activities In China

As a representative of high-tech,the new energy industry has gradually risen since China entered the new age of economy.The new energy automobile industry,as one of the representatives of new energy technology,is also booming.However,the development of China’s new energy automobile industry mainly depends on the support of industrial policies especially the subsidy policy,which has advantages and disadvantages.This paper adopts the method of combining theory and case,systematically combs the change of new energy automobile industry policies in 2014-2018,and analyzes the impact of the change on Enterprise R&D activities through the BYD company.The subsidy policy discussed in this paper,including the product subsidy to consumers and the subsidy to the R&D investment of enterprises.According to the old accounting standards,product subsidies were included in the operating revenue,and R&D investment subsidies were included in the nonoperating revenue before 2016;however,according to the revised accounting standards,product subsidies were still included in the operating revenue,R&D investment subsidies related to daily activities were included in the deferred income,and apportioned into other income,and those unrelated to daily activities were included in the non-operating revenue after 2017.And operating income and other income will affect current operating profit.At present,due to the appearance of more technical indicators and the rising threshold standards in the subsidy policy,the incentive of product subsidy to innovative products is gradually strengthened,but the continuous decline of subsidy will weaken the incentive effect.On the other hand,the R&D investment subsidy in the subsidy policy has experienced the change of decreasing first and then increasing.Although product subsidies and R&D input subsidies will affect the R&D input,R&D output innovation degree and R&D capitalization rate of enterprises,their respective roles are not the same.Based on this,this paper draws the following conclusions:(1)When the product subsidy does not encourage innovative products,because the high product subsidy will directly affect the business income,which makes the enterprise have no R&D innovation power,therefore,the change of new energy vehicle subsidy policy can stimulate the enterprise’s R&D input and R&D output innovation degree,but the incentive effect has a certain range,Otherwise,it will cause waste of R&D investment and even squeeze out the R&D innovation of enterprises.(2)Although both kinds of subsidies have an impact on the R&D input and output of enterprises,the R&D input subsidies have a more effective impact on the R&D input of enterprises,while the product subsidies have a more direct and effective impact on the R&D innovation of enterprises.(3)If all R&D investment is included in the current R&D expenses,it will have a great impact on the operating profit.High product subsidies can improve the operating profit situation,and then reduce the capitalization rate of R&D investment.When the product subsidies decrease and the R&D investment subsidies increase,although it can also improve the operating profit,the improvement effect is not equal to the growth scale and capitalization of R&D investment of enterprises the rate was forced to rise.Therefore,this paper puts forward the following suggestions:(1)As a policy maker,the government should continue to maintain the higher technical indicators and threshold requirements of product subsidies,and increase subsidies for R&D investment,but at the same time maintain the two subsidies in a reasonable range;on the other hand,the government should force enterprises to disclose the proportion of product revenue from government subsidies and the main research Development projects,project progress,project R&D investment,detailed R&D investment capitalization conditions,etc.(2)For the long-term development of an enterprise,managers should increase R&D investment and make effective use of funds,increase R&D innovation output,and carefully use R&D investment capitalization means to control profits.(3)As an investor,we should deeply understand the R&D activities of an enterprise and then make the right investment decisions.