Debt heterogeneity theory has offered a new perspective to explain the relationship between debt financing and corporations’ technological innovation under the fierce competition environment. The duality property of innovation incentive has been first put forward by this paper, based on which the mediation effect of these two types of innovation incentive between banks’ governance and innovation performance has been tested from the perspective of relational creditor. The moderation effect of property right has also been studied so as to explore the function border of banks’ governance towards innovation performance. It is found out that commercial banks in China have been showing typical features as relational creditor, and its governance mechanism can boost debtors’ innovation performance through the mediation effect of constraining innovation incentive. While the mediation effect of encouraging incentive is not significant. Furthermore, property right can significantly moderate the relationship between creditors’ governance and innovation performance. Along with equity ratio of state owned shares increases, there is less constraining incentive generated by creditors’ governance mechanism, and its boost effect upon innovation performance is consequently weakened.