Can easing financing constraints promote the innovation of charging infrastructure enterprises? Based on the intermediary effect of government subsidies

Easing the financing constraints of charging infrastructure is crucial to promoting the development of new energy vehicles (NEVs) and and green energy. The financing constraints hinders the technological innovation of charging infrastructure enterprises, and the Chinese government aims to address these financial constraints by implementing a policy that provides industrial financial subsidies. This study empirically investigates how government subsidies regulate the relationship between financing constraints and enterprise innovation, based on a sample of publicly listed companies operating in China's charging infrastructure sector from 2016 to 2022. The findings indicate that financing constraints have an adverse impact on both the quantity and quality of innovation. The provision of government subsidies, however, serves to alleviate financing constraints and further mitigate the negative impact through the transmission effects of information. From a regional perspective, areas with limited innovation capabilities require greater government subsidies to stimulate enterprise innovation. Our contribution lies in expanding our understanding of how governmental public policies regulate industrial innovation activities by addressing financing constraints.