Based on panel data from 30 provinces in China from 2011 to 2018, this paper uses Stochastic Frontier Analysis(SFA) to measure regional innovation efficiency in China. Then a dynamic spatial panel model is used to conduct an empirical analysis of the relationship between development of Internet finance and the improvement of regional innovation efficiency in China. It shows that the development of Internet finance and regional innovation efficiency have significant spatial agglomeration characteristics. Through further testing of the intermediary effect, this paper found that the development of Internet finance has a positive impact on regional innovation efficiency mainly through accelerating financial development and human capital accumulation, and this effect also shows a significant space spillover effect.