Charging and swapping technology innovation strategies in competitive EV supply chains: The impact of incentive policies and time-sensitive consumers

The rapid expansion of the electric vehicle market, coupled with the limitations of traditional charging mode (CM), has driven the rise of swapping mode (SM), leading to coexistence and competition between the two. This study develops a competition model between CM and SM under dynamic power structures to explore optimal technology innovation strategies. By segmenting consumers based on time sensitivity, we examine how behavioral heterogeneity affects technology advancement, vehicle demand, and service adoption. Furthermore, we examine the impacts of different subsidy schemes on innovation and social welfare. Results show: (1) Technology levels in both modes peak under Nash game and are lowest under Manufacturer-led structures. While increased operator investment enhances innovation, an equitable cost-sharing mechanism is essential. (2) Consumer time sensitivity significantly shapes market outcomes, with highly time-sensitive consumers (H-consumers) generating an inverted U-shaped effect on social welfare. (3) Subsidies stimulate innovation in the emerging swapping mode but have limited marginal effects on the mature charging mode. There exists a critical threshold in the effectiveness of subsidies on social welfare. Specifically, consumer subsidies expand the early SM user base, while operator subsidies maximize social welfare. Notably, operator subsidies are more impactful when H-consumers dominate the market.