Abstract: Innovation is the primary driving force for economic growth, and basic research is a key source for promoting innovative growth and stimulating breakthrough innovations. Based on the annual survey data of 63,000 science and technology enterprises in Shanghai from 2008 to 2018, patent applications and paper publications, this paper provides new evidence for the trends, motivations and innovation breakthrough effects of basic research in enterprises. The research findings are as follows: First, basic research by enterprises has a promoting effect on technological breakthroughs. For every additional paper published by enterprises, the number of breakthrough invention patent applications increases by 0.8%. Second, the effects of basic research are heterogeneous and are related to the R&D investment, human capital and the intensity of technological returns in the industry. Third, basic research promotes technological breakthroughs through three mechanisms: increased knowledge density, expanded technical scope, and enhanced economic value. The conclusion of this article provides theoretical support and policy reference for giving full play to the role of enterprises as the main body of innovation, achieving science-driven innovation, and accelerating the implementation of the innovation-driven development strategy.