Abstract In order to explore how local enterprises to achieve modular product innovation and to break through the "lowend locking", this study applies the multiple regression method to analysis the impact of technology integration capabilities on modular product innovation and the moderating effect of exploitative learning, exploratory learningand module degradation,using the data of 190 local enterprises. The empirical results show that the technology integration capability has a significant direct impact on module innovation and architectural innovation. Exploratory learning has significant positive moderating effect in the linkages between technology integration capability and itsrelated two types of modular productsinnovation. There is a significant positive moderating effect of the exploitative learning in the linkages between technology integration capability and module innovation, but limited effect on architectural innovation. The degradability of modules has significant positive moderating effects in the relationship between technology integration capability and two types of modular products innovation.