Impact of policy incentives on technological innovation and diffusion within the new-energy vehicle industry: an ecosystem approach

Abstract

ABSTRACT In the context of developing emerging industries in China, this study examines the specific effects of policy incentives on new energy vehicle (NEV) technological innovation and constructs a susceptible-exposed-infected-recovered (SEIR) infection model to simulate the diffusion of the NEV technological innovation process. The results highlight four main findings. First, an inverted U-shaped relationship exists between government-supported policies and technological innovation in NEVs. Second, regulatory policies can significantly incentivize the innovative behaviour of NEV enterprises. Third, the effects of policy incentives are more evident in the technological innovation of non-state-owned enterprises than in state-owned enterprises. Fourth, the SEIR infection model shows that policy incentives significantly accelerate the process of utilising, optimising, and replacing technologies in the technology innovation ecosystem, significantly shortening the iterative process of the entire system.