More Government Subsidies, More Innovation of New Energy Firms? Evidence from China

This paper evaluates the causal relationship between government subsidy and innovation performance of new energy firms through count models using 2007–2021 data from China’s listed companies. By looking at for number granted patents, we find policies significantly boost firms’ performance. We estimate that a tenfold increase in would lead to an 7.11 total patents firms. Furthermore, heterogeneity analysis shows such effect varies depending on nature property rights, scale, region To be specific, state-owned are more dependent subsidy, is generally higher high-subsidy group than low-subsidy while being when it comes low-tech design eastern most sensitive subsidy. also assesses role R&D investment how performance; is, by increasing their funding rather manpower investment. These findings illustrate developing countries, effective boosting