The relationship between geographical distance and innovation has been widely studied, but the impact of supply base distance on firm exploitative and exploratory innovation remains unclear. Using panel data from listed high-tech manufacturing firms in China, we investigate this association, along with moderating effects of startup ratio and industry distinctiveness at the supply base level. Our findings reveal an inverted U-shaped relationship between supply base geographical distance and exploratory innovation, with both supply base startup ratio and industry distinctiveness flattening this relationship without altering the optimal supply base geographical distance. In contrast, our findings do not confirm a significant link between supply base geographical distance and exploitative innovation, nor do they indicate moderating effects of supply base startup ratio and industry distinctiveness. This study extends the understanding of the role of supply base geographical distance in firm innovation by distinguishing different types of innovation from the organizational learning perspective and highlights strategies for facilitating targeted innovations.
