We　examine　the　effect　of　corporate　innovation　input　and　output　on　analysts＇　estimates　of　the　cost　of　equity　based　on　data　from　public　listed　Chinese　companies　between　2007　and　2017.　Analysts＇　estimates　of　the　cost　of　equity　significantly　increase　with　corporate　innovation　input,　whereas　their　estimates　decrease　with　corporate　innovation　output,　as　indicated　by　this　research.　The　results　of　additional　analysis　suggest　that　the　role　of　corporate　innovation　input　in　increasing　the　estimates　of　the　cost　of　equity　is　more　significant　with　an　increase　in　environmental　uncertainty　and　negatively　mitigated　by　strong　survival　ability.　However,　the　role　of　corporate　innovation　output　in　decreasing　analysts＇　estimates　of　the　cost　of　equity　is　not　significantly　moderated　by　environmental　uncertainty　or　corporate　survival　ability.　Furthermore,　we　find　that　analysts　consider　financial　constraints　and　information　asymmetry　when　estimating　the　cost　of　equity.　On　this　basis,　the　present　study　confirms　that　investors　are　significantly　responsive　to　analysts＇　estimates　of　the　cost　of　equity　during　investment　decision　making.