Enhancing innovation through knowledge spillover: mediating role of enterprise basic research

Knowledge spillover influences innovation within enterprises. This paper categorises knowledge spillover into internal and external types, utilising data from Chinese listed companies between 2018 and 2022. A non-equilibrium panel model is employed to analyse the effect of knowledge spillover on enterprise innovation. This paper examines the mediating role of basic research in knowledge spillover and enterprise innovation performance, as well as the moderating role of absorptive capacity in the relationship between knowledge spillover and enterprise basic research. The findings indicate that both internal and external knowledge spillovers enhance innovation performance. Basic research serves as a partial mediator in the relationship between knowledge spillovers and innovation within enterprises. The absorptive capacity of enterprises enhances the relationship between knowledge spillover and basic research. This study enhances the literature on knowledge spillovers, basic research, and innovation performance, offering both theoretical insights and practical guidance for enterprises in decision-making regarding basic research, as well as for governments in policy improvement.