Does Innovation in New Energy Vehicle Enterprises Always Enhance Enterprise Value? Evidence from China

Although innovation is widely recognized as an important driving force for enterprise development, there may not be a simple linear relationship between innovation and enterprise value. An in-depth investigation of the relationship between enterprise innovation and enterprise value is of great significance for the development of new energy vehicle (NEV) enterprises and the industry. Utilizing the sample of Chinese NEV listed companies from 2012 to 2022, this study empirically examines the effects of enterprise innovation on enterprise value from two perspectives: innovation input and innovation output. The results indicate that enterprise innovation does not necessarily promote the growth of enterprise value in all cases. Innovation input exhibits a U-shaped effect on enterprise value, while innovation output has a linear positive impact. And the operational efficiency of enterprises plays a partial mediating role. Furthermore, we explore the effects of internal and external environments on the relationship. High internal control costs weaken the U-shaped relationship of innovation input and reduce the positive impact of innovation output on value. In contrast, greater market competition attenuates the U-shaped effect of innovation input but strengthens the positive effect of innovation output on enterprise value. These findings highlight the contingent nature of innovation value creation in complex industrial systems and provide insights for strategy and policy in the NEV industry.