Corruption and enterprise innovation under the background of transition in China

Abstract

In recent years, both corruption and economic growth have earned substantial attention from scholars, but the relationship between corruption and enterprise innovation has not received sufficient attention in the current literature. Using the World Bank's (WB) survey data on the environmental quality of Chinese enterprises' operating systems, this paper empirically studied the relationship between corruption and enterprise innovation. The results show that corruption promotes enterprise innovation, and corruption has significant different impacts on the innovation of enterprises with different sizes. The results indicate a robust relationship between corruption and enterprise innovation.