This study empirically examines the differential impacts of government support on firms’ innovation performance. Government support is categorized into financial support (tax, funding, and finance) and non-financial support (technology and human resources), and their respective effects on market performance and innovation capability are analyzed. Using data from the 2022 Korean Innovation Survey (KIS) conducted by the Science and Technology Policy Institute (STEPI), the analysis applies propensity score matching and logistic regression, along with moderation tests using Hayes’ process macro. The results indicate that both financial and non-financial support significantly enhance market performance, while only non-financial support exerts a meaningful influence on innovation capability. Furthermore, Non-financial support exhibited a positive moderating effect on market performance when market-based information sources were utilized, while its impact on innovation capability varied with the level of utilization. In contrast, the use of science-based information sources had significant positive effects on both market performance and innovation capability, with the latter strengthened particularly at higher levels of utilization. Additional mediation analysis shows that non-financial support enhances market performance through innovation capability, whereas financial support exhibits no such effect, highlighting the need for firms to build internal capabilities for sustainable outcomes. These findings suggest that government policies should be tailored to the type of support provided and that integrated strategies combining external knowledge sources are essential. In addition, strengthening innovation capability is critical for achieving sustainable innovation outcomes in the long term.