<p>This study combines the micro-geographic perspective with knowledge environment spillovers and innovation in cities and uses data from knowledge sources and innovative enterprises in Beijing to explain the evidence of micro-geographic proximity and enterprise innovation within towns. Using the latitude and longitude coordinates of the enterprise, the enterprise’s knowledge environment can be described at a magnificent micro-geographic scale, and the impact of the micro-knowledge environment on enterprises’ innovation can be tested through the propensity score matching method. Results show that the concentration of enterprises began to decline beyond a radius of 50 m. It is difficult for us to find obvious correlations if the distance exceeds 1&#xa0;km; enterprises with market innovation or continuous internal research and development, these enterprises are often closer to other enterprises in the same sector; compared with private enterprises and foreign enterprises, state-owned enterprises are as important as the role of knowledge sources in driving innovation, especially as the distance between enterprises increases, indicating the true microscopic characteristics of the geographical radiation range of knowledge sources in cities.</p>