Enhancing the innovation ability of enterprises is the key to promote the high-quality development of the economy, and total factor productivity, as a key indicator of enterprise production efficiency, has an important impact on economic development. Based on the data of China's A-share listed companies in 2019-2023, this paper empirically examines the impact of corporate innovation capacity on total factor productivity and the moderating effect of R&D intensity. It is found that there is an "inverted U-shaped" relationship between corporate innovation capacity and total factor productivity, i.e., the improvement of innovation capacity can significantly promote the growth of total factor productivity at the initial stage, but when the innovation capacity exceeds a certain threshold, its promotion effect on total factor productivity gradually weakened or even turned to be suppressed. Further analysis shows that an increase in R&D intensity can prolong the duration of the positive effect of firms' innovative capacity on total factor productivity and mitigate its negative effect. Heterogeneity analysis finds that the enhancement of innovation capacity on total factor productivity is more significant in non-state-owned enterprises, while it is relatively weaker in state-owned enterprises. Through the above analysis, this paper further suggests the limitations of the study and future research directions, provides theoretical support for understanding the role of enterprise innovation capability in enhancing total factor productivity, and provides a reference for enterprises and the government to make decisions on the enhancement of innovation capability and R&D management.

Yunkai Wang, Quan Zhou, Xin Li. Research on the Impact of Corporate Innovation Capacity on Total Factor Productivity—Moderating Effect Test Based on R&D Intensity. Academic Journal of Business & Management(2025), Vol. 7, Issue 4: 1-12. https://doi.org/10.25236/AJBM.2025.070401.

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