Based on the inter-provincial panel data from 2000 to 2017, using static panel and threshold panel model, through the establishment of regression model with government intervention and marketization process as the threshold, empirical analysis of foreign direct investment and regional innovation on China's urbanization development There are significant differences in the impact. The research results show that foreign investment and regional innovation have positive effects on urbanization development. At the same time, foreign investment and regional innovation change from substitution effect to complementary effect; government intervention has a double threshold effect on foreign direct investment, and there is a single regional innovation. Threshold effect; market-oriented foreign investment has a single threshold effect, but there is a double threshold effect on regional innovation. Based on the above conclusions, suggestions for promoting urbanization are further proposed.