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This study aims to measure the moderating effect of geographical and organizational proximity by focusing on readily available Chinese regional economic data over a five-year period.

The authors used multilevel regression analysis to analyze the relationship.

Results show that increasing government investment in research and development (R&D) can improve innovation performance during this period, organizational proximity and geographic proximity have a positive moderate effect on the relationship between R&D investment and Innovation performance.

This study enriches the existing theories on government innovation input and output from the perspective of regional differences and provides meaningful guidance for current Chinese regional innovation policies.