Abstract:This paper empirically analyses the role mechanism between S&T funding, S&T policy tracking audit and urban innovation level using panel data of 274 prefecture-level and above cities in China from 2017 to 2020. The results show that S&T funding positively affects the level of urban innovation, and the role of funding for basic and applied research is greater than that of experimental development. The S&T policy tracking audit has a significant impact on the level of urban innovation and plays a positive moderating role in the relationship between S&T funding and the level of urban innovation. Its moderating role varies across different types of S&T activities. Further research found that the role of S&T policy tracking audit on regional innovation development is stronger in the eastern region than in the central and western regions. In addition, S&T policy tracking audits have a positive spatial spillover effect, which radiates to the neighboring regions to achieve the common development of overall S&T innovation.