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Financial support is of crucial importance for driving technological innovation within the new energy vehicle (NEV) industry. By using the data of listed NEV enterprise in China from 2016 to 2020, the panel regression model is employed to explore the effect mechanism of financial support on technology innovation. Furthermore , Data Envelopment Analysis (DEA) and Malmquist index method are applied to assess the financial support efficiency from static and dynamic perspectives, respectively. The results indicate that: (1) Both market-oriented and policy-oriented financial support significantly contribute to technology innovation across the entire NEV industrial chain, with R&D investments playing a critical mediating role. (2) Upstream and midstream enterprises are mainly supported by bank credit, while downstream enterprises rely more on equity and government support. (3) Upstream enterprises have the highest financial support efficiency and stable total factor productivity (TFP), while midstream and downstream enterprises are affected by external environments, leading to a gradual decline in TFP. Finally, it is suggested to enhance the innovation level of the NEV industry through building a multi-level market-oriented financial support system, improving the policy support mechanism and promoting industrial chains coordination development. This study sheds light on the importance of targeted financial support strategies to foster sustainable innovation in the NEV industry. • The effect mechanism and efficiency of financial support on new energy vehicles technology innovation is explored in this study. • Both market-oriented and policy-oriented financial support significantly contribute to technology innovation. • Upstream and midstream enterprises are mainly supported by bank credit, with upstream enterprises having the highest financial support efficiency and stable total factor productivity. • Downstream enterprises are proved susceptible to external environmental influences and mainly rely on equity and government support. [ABSTRACT FROM AUTHOR]