Abstract: The successful transformation of the driving energy for China's economic development requires not only the dominant role of innovation driving played by enterprises, but also the coordinated efforts of market mechanism and government intervention. Taking the A share listed companies from 2007 to 2017 as the research objects, this paper investigates the relationship among market driving, innovation efficiency (IE) and corporate risk-taking(CRT). The empirical results show that IE can provide resource support for CRT based on competitive advantage effect and signal transmission effect. The above-mentioned effects are more significant in the enterprises located in the areas with higher degree of marketization. Further research shows that in regions with lower degree of marketization, it is more necessary for“activist government”to play a guiding role to overcome market failures. Compared with the non-innovation subsidy, the innovation subsidy plays a more prominent guiding role. Based on this, considerations should be given to the collaborative efforts of the“activist government”while improving continuously the market mechanism. The corporate internal innovation management should be improved with efficiency as the orientation, at the same time, the fair competition among the enterprises should be promoted with fair supervision.

Key words: innovation efficiency, corporate risk-taking, market mechanism, activist government