Higher education institutions, as the main carriers of basic research in China, play a crucial role in transforming research investments into regional innovation dynamics, a key condition for promoting economic growth. Using provincial-level data from 2006 to 2020, this study examines the impact of university basic research on regional technological innovation. The results show that the basic research of universities as a whole can significantly promote regional technological innovation and achieve the dual effect of “quality improvement and increment”. University basic research influences regional innovation mainly through “explicit channels” and “implicit channels”. The mechanisms of impact of these two channels are significantly different. “Explicit channels” only promote regional innovation quantitatively, while “implicit channels” have a more comprehensive impact on regional innovation, effectively enhancing both the quality and quantity of innovation. Further analysis indicates that the intensity of basic research positively moderates its role in promoting regional innovation development, and this moderating effect shows an increasing trend. The study also reveals significant regional heterogeneity, indicating a decreasing pattern of the impact of university basic research on innovation output in the eastern, central, and western regions of China. Notably, in areas with a higher degree of marketization, university basic research has a more significant role in promoting technological innovation. The findings of this study not only reveal the significant importance of university basic research in enhancing regional innovation performance but also provide policy implications for the formulation and adjustment of science and technology policies under the goal of high-quality development.