Abstract:The management and operation of the old and new technologies is a decision-making problem commonly faced by enterprises. It’s of great significance to study the policy with characteristics of subjective guidance and punishment when the efficiency of market resource allocation is low. To industrial policy which measures technical performance of fuel and new energy vehicles in the form of double points, this paper analyzes the causal loop relationships in two sub modules of technology operation and R&D, and then establishes a system dynamics model. Simulation results of multiple scenarios show that, by reducing fuel consumption or raising mileage of new energy vehicles, R&D is the key to make integral positive from negative. External market demand influences R&D capital input, while learning curve affects R&D process directly. These two factors affect implementation effect and duration of industrial policies. On the other hand, the difficulty and cost of purchasing positive points through market are determined by the regulation of policies on key indicators, such as the standard value of fuel consumption. The policy will affect adaptive decision-making of enterprises, jointly with the demand factor. It is suggested to design policy with staircase tighter technical indicators, while policy pressure is applied to stimulate R&D at initial stage. Enterprises should avoid absolute market oriented operation and improve technology efficiency actively during the policy buffer period. The strategy will provide space for production capacity adjustment when policy is tighter.