Breaking Through with Quality: How Innovation Reshapes the International Competitiveness of China's New Energy Vehicles

Abstract

This study investigates the impact of technological innovation quality on the "volume-price rise" of China's new energy vehicle (NEV) exports. Using monthly data from 2018 to 2024, we construct an innovation quality index - measured by the share of invention patents - and employ a Vector Autoregression (VAR) model for empirical analysis. The findings reveal that: (1) Improvements in innovation quality Granger-cause expansions in export scale and unit price, with impulse responses confirming lasting impacts; (2) The "quality" of innovation substantially outweighs the "quantity" (total patents) in driving export performance, with variance decomposition indicating its contribution is more than double; (3) Innovation quality primarily enhances export unit price through a "premium effect" rather than cost advantages. This research provides robust empirical evidence for latecomer economies to achieve industrial upgrading through quality-oriented innovation policies.