Based on Social Anomie theory and Institutional theory, this paper investigates the relationship between the cor-ruption of different regions and firms' innovation activities using the micro data on manufacturing firms from 2005 to 2007. The empirical results shows, firstly,both R&D investment and new products sales had significant negative correlation with corruption;secondly, the negative relationship only exits in the domestic enterprises and a positive relationship is found in the foreigner enterprises;the depressing effect of corruption are more serious on the smaller firms, and relativel...
