Innovation effect of common prosperity within enterprises: empirical evidence from the panel data of Chinese A-share listed companies

This paper discusses the impact of the internal implementation of common prosperity strategy on the innovation effect, aiming to reveal how the fair wealth distribution and opportunity sharing can promote the innovation ability of enterprises. Taking the panel data of a-share listed companies in Shanghai and Shenzhen from 2008 to 2022 as the original sample, this paper empirically tests the influence effect and action mechanism of internal common prosperity on enterprise innovation. The study found that common prosperity within enterprises can significantly increase the innovation output, that is, a significant increase in the number of patent applications. This conclusion remains under a series of robustness tests. Heterogeneity discussions found that the effect of private enterprises and labor-intensive enterprises was more influential. Further mechanism analysis shows that the common prosperity of enterprises alleviates their own financing constraints and information asymmetry degree, and then promotes the improvement of innovation output. Under the background of the in-depth development of the concept of common prosperity, this paper reveals that the common prosperity within enterprises is not only an important way to achieve social equity, but also a key factor to promote the continuous innovation and long-term success of enterprises.