This　paper　investigates　the　impact　of　corporate　collaboration　culture　on　firms’　breakthrough　innovation.　Utilizing　MD&A　texts　from　the　annual　reports　of　Chinese　A-share　listed　companies,　we　develop　a　measure　for　collaboration　culture　and　examine　its　influence　on　firms’　breakthrough　innovation　outputs.　Our　findings　indicate　that　collaboration　culture　inhibits　breakthrough　innovation　through　two　primary　mechanisms:　1)　it　fosters　innovation　path　dependence,　whereby　firms　prioritize　refining　existing　technologies　over　exploring　new　avenues,　as　collaboration　culture　promotes　collectivism　while　discouraging　individual　creativity;　2)　it　restricts　knowledge　spillovers　between　firms　due　to　internal　collaboration　substituting　for　external　collaborative　efforts.　The　adverse　effects　are　particularly　pronounced　among　private　enterprises,　within　competitive　industries,　in　regions　characterized　by　lower　levels　of　industrial　clustering,　and　among　firms　with　limited　digital　transformation　capabilities.　©　2025　Elsevier　Inc.