This probably applies less to big conglomerates who exist and will continue existing regardless of what happens (honestly most of their employees can just not show up and they will be fine), but more to technical innovation.
I can guarantee you that in general in software engineering, you will produce the same result, whether you work 30 or 40 or 60 hr a week. The productive hours will be the same as you just have so much focused hours inside of you.
Anyone being forced to work under the conditions you describe is probably too terrified to do anything more than iteratively replicate existing foreign designs.
You can't force innovation by locking people in a dungeon and screaming "INNOVATE!" at them until they succeed.