Jay Ward, the creator of Bullwinkle and other popular television cartoon characters, died of kidney cancer on Thursday at his home in Los Angeles. He was 69 years old. Mr. Ward, whose innovative work contributed sophistication and wit to television cartoons for more than three decades, was best known for his series about a bumbling, deep-voiced moose - Bullwinkle - and his sprightly companion, Rocky, the flying squirrel. The duo's exaggerated and satirically drawn sidekicks included the Cold War-vintage spies Boris Badenov and Natasha Fatale and the eternally backward Capt. Peter Peachfuzz.

The series, which Mr. Ward created with Bill Scott, made its debut on ABC in 1959 under the name ''Rocky and His Friends.'' In 1961, Rocky and Bullwinkle's capers moved to NBC as ''The Bullwinkle Show,'' and became one of the first prime-time network cartoon series. Mr. Ward and Mr. Scott had a particular penchant for literary and historical puns, and they produced episodes with such titles as ''The Guns of Abalone,'' ''The Whale: Maybe Dick'' and ''On the Shores of Veronica Lake There Sails the Ruby Yacht of Omar Khayyam.'' The series was canceled in 1964, after 156 episodes, although it has continued to be broadcast in syndication throughout the world. Parents Laughed, Too

Commenting on the show's popularity among adults as well as children, the film director Steven Spielberg said in an interview with The New York Times this year: ''It was the first time that I can recall my parents watching a cartoon show over my shoulder and laughing in places I couldn't comprehend.''

After attending the University of California and Harvard Business School, Mr. Ward returned to his hometown, Berkeley, Calif., to open a real-estate business. While recovering from injuries suffered in an auto accident, Mr. Ward, with Alex Anderson, came up with the character of ''Crusader Rabbit,'' the first cartoon created for television. It was introduced in 1949, and its menagerie of characters included Bullwinkle and Rocky.

Mr. Ward produced several other series after Bullwinkle, including ''Hoppity Hooper,'' ''Fractured Flickers'' and ''George of the Jungle,'' a gentle satire on the Tarzan story that was broadcast from 1967 to 1970. He also produced commercials for Cap'n Crunch breakfast cereal for 18 years.

Mr. Ward is survived by his wife, Ramona; two sons, Ron, of Redman, Wash., and Carey, of Newport Beach, Calif.; a daughter, Tiffany Fabregas of Los Angeles, and two grandchildren.

Jay T Ward