Dual innovation and enterprise productivity: A resource conservation perspective

To explore how dual innovation stimulates productivity in modern enterprises and unlocks opportunities for productivity growth, this study adopts a high-dimensional fixed-effects model to examine the impact of dual innovation on productivity. Using panel data from Chinese A-share listed companies in Shanghai and Shenzhen spanning 2006 to 2022, the analysis yields three key findings: First, dual innovation significantly enhances productivity, with breakthrough innovation driving more substantial improvements in productivity than incremental innovation. Second, the mechanism analysis reveals that dual innovation can boost productivity by strengthening organizational resilience. Third, both types of innovation are more effective in state-owned enterprises (SOEs) than in non-state-owned enterprises (non-SOEs), while breakthrough innovation has a stronger impact on productivity in large firms compared to small and medium-sized enterprises.