Abstract:This paper analyzes the dynamic relationship among government R D funding, enterprise R D inputs and innovation performance and the difference between regions of China using PVAR model based on the panel data of China from 2009-2017.The results show that both government R D funding and enterprise R D inputs have a positive effect on innovation performance, and innovation performance is more quickly responsive to enterprise R D inputs, but more violently responsive to government R D funding. Innovation performance has a depressing effect on government R D funding, and it has a positive effect on enterprise R D inputs. The relationship between government R D funding and enterprise R D inputs is first mutually reinforcing and then mutually inhibiting each other. It reflects the complex relationship between government R D funding and enterprise R D inputs. The “lever effect” and “crowding-out effect” have played a leading role in sequence. There are regional heterogeneous effects between regions. The national, eastern, central, and western regions have regional differences in response directions and response speeds.