The Impact of Government Subsidies on Enterprise Innovation Ability

With the global environmental pollution problem increasingly serious, green development has become a general trend. Under this kind of background, new energy vehicles, as an important tool to promote sustainable transportation and facilitate the transformation of the energy structure, have become an important development direction of the global automobile industry. In the initial stage of development, new energy vehicle enterprises are unable to open the consumer market due to their high research and development cost and limited technology. However, since 2009, China’s central finance has given subsidies and support for the production to the promotion and application of new energy vehicles. This paper analyzes the positive and negative effects of Chinese government subsidies on the innovation ability of new energy vehicle enterprises, and thus I put forward relevant suggestions.