Research on R&D Investment of China's New Energy Vehicle Innovative Enterprises

Purpose: This paper analyzes the influencing factors of China's new energy vehicle R&D investment based on the 2012~2019 data of Chinese new energy vehicle listed companies including BYD, Yutong Bus, Zhongtong Bus, Zotye Automobile, Great Wall Motor, King Long Motor, FAW Automobile, Foton Motor, and SAIC Motor. Design/Methodology: In this paper, the factors affecting the R&D of Chinese new energy automobile companies are evaluated using the unit root test, the Westerlund cointegration test, the Hausman test, and the 2SLS endogenous instrumental variable method. Findings: The number of employees in the company's R&D department is positively correlated with R&D intensity. Increasing the scale of the research and development department and introducing advanced technical experts can improve the quality of research and development. The company's profitability is closely related to the intensity of its research and development. Improving the company's profitability can ensure the company's sustainable operation, carry out other business activities more effectively, and provide a source of funding for technology research and development. Long-term R&D investment is directly related to the competitiveness of enterprises. Reasonable government subsidies can stimulate enterprises’ R&D investment and encourage more enterprises to improve their core technologies and competitiveness. Originality/Value: This paper analyzes the current international competitiveness of China's new energy vehicles from the perspective of global value chains, and analyzes the decisive factors that affect the international competitiveness of new energy vehicles, so as to provide constructive suggestions for increasing the R&D investment of China's new energy vehicle companies.