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China has now entered a stage of high-quality development. Realizing the transformation and upgrading of the manufacturing industry in the new stage is conducive to promoting China’s high-quality development process. However, the current problem of insufficient capacity utilization in the manufacturing industry will affect its transformation and upgrading. From the perspective of micro-enterprises based on the data of 1,628 A-share listed companies in China’s manufacturing industry, this paper uses a random panel Tobit model to study the impact of technological innovation on enterprise capacity utilization. The research results show that technological innovation promotes the optimization and upgrading of enterprise products, improves the production efficiency of enterprises, and effectively promotes the improvement of enterprise capacity utilization.