The Impact Of Government Subsdies On Firms’ Innovation Quality

The prosperity of the industry is inseparable from a series of supporting policies provided by the government’s "tangible hand".Based on the development of the energy vehicles(EVs)industry,this study attempts to explore the impact of the evolution of government policies on EVs firms from practical and theoretical aspects,so as to improve the feasibility and effectiveness of the policy to provide a scientific basis.Taking new EVs industry as an example,this research studies the role of government subsidies on industry development and figures out the following three core theoretical questions:Firstly,through quantitative mining and qualitative analysis of policy texts,we seek the internal structure and relationship between policies.Secondly,based on signal theory and resource-based theory,this part is based on signal theory and resource-based theory,using Probit regression in order to reveal the motivation behind the choice of firms.Thirdly,to compare the changes in the choice of innovation quality after the government announced the decline of subsidies,this study use the empirical test method of RDD and explain the reasons behind this phenomenon.The results show that the subsidy policy is an important driving force for innovation in the EVs industry.In the initial stage of the EVs industry,government subsidies have a positive impact on the innovation output of enterprises,and government subsidies will promote the role of their own innovation funds on innovation activities.When the industry develops to a certain stage,the decline of subsidies can effectively promote the technological transformation and upgrading of firms,and comprehensively promote full market competition.This research has the following contributions:First,from the perspective of innovation policy research contribution.This research grafts the textual data science research paradigm into the research field of innovation policy,broadening the boundaries of policy research.In addition,from the theoretical level,it reveals the role and influence of the government’s implementation of policies on different dimensions of EVs industry,and fully reflects the evolution path of the EVs industry policy.Second,from the perspective of policy effect test.The research combines resource-based theory and signal theory,and finds the motivation of EVs firms to choose the type of innovation quality,which provides a practical analysis tool for the research on the impact of government subsidies on enterprise innovation quality.Third,the research provides empirical evidence for the rationality of the existing EVs subsidies reduction policy.