Study on the Impact of Breakthrough and Incremental Innovation on Firm Capacity Utilization

Effectively resolving manufacturing overcapacity is an important way for China to stimulate economic vitality and achieve high-quality development. Although research on technological innovation resolve has attracted academic attention, less been conducted from the perspective of intensity. This paper uses panel data 1447 A-share listed companies in China’s industry 2016 2020, based a two-way fixed effects model. The divides into two dimensions explore impact breakthrough incremental enterprises’ capacity utilization. results show that both innovations can effectively improve utilization enterprises; however, greater degree improvement. moderating effect shows good institutional environment strengthens positive relationship between enterprises. heterogeneity analysis finds have stronger state-owned further improves theoretical framework enterprise provides basis motivation Chinese respond national requirements