Abstract: In the face of the challenges of rapid urbanization, the innovation-oriented urban construction plays a crucial role in the promotion of sustainable development, and the improvement of residents' quality of life. This article constructed an index system to measure the progress of innovative urban construction in Hubei Province and used the method of Mean Observation OLS (MO-OLS) regression to study the temporal and spatial effects of environmental factors on innovative urban construction from 1990 to 2019. This study aimed to overcome the shortcomings of traditional statistical methods that adopted fixed coefficients. The study found that, the entrepreneurial environment and venture capital showed a synergistic growth trend in promoting the innovative urban construction in Hubei Province. The impact coefficient of the entrepreneurial environment fluctuated less and had a relatively stable pushing effect. In contrast, the impact coefficient of venture capital was distributed in a wider range, with larger fluctuations. The impact coefficient of foreign investment showed a decreasing trend, while the impact coefficient of environmental regulation and its quadratic term remained relatively stable. Environmental governance contributed the least to the major innovative urban construction in Hubei Province. Specifically, the effects of the entrepreneurial environment, environmental governance, and venture capital in Wuhan City were leading other cities, while the contributions of foreign investment and venture capital to innovative construction varied significantly among different cities in Hubei Province. The use of the Mean Observation OLS method and the application of the environmental factors in the process of innovative urban construction in Hubei Province broadened the analytical paradigm of regional innovation research technically, and also provided a new perspective for understanding the spatiotemporal heterogeneity and complexity of innovation impact theoretically.