This paper explores firm-level innovation in a human capital view using two firm-level datasets from China, one from metropolitan cities and one from provincial middle cities. General human capital level can affect innovation directly and via R&D level indirectly; managerial human capital can affect firm innovation through their decision-making. We find that general human capital and managerial personnel’s education has a significantly positive effect on innovation while the management team’s age has a significantly negative effect on innovation. R&D has a larger effect in less developed areas. Finally, we also try IV estimation and the related results are discussed.