This study examines the causal effects of board power on corporate innovation. We find that lower board stock ownership, higher independent boards, higher level of director compensation are associated with more innovative activities. We also show evidence that the positive impacts of independent board, director compensation and board power on firm innovation tend to be weaker after SOX Act. Our results generally support that board power plays an important role in fostering innovation. Our study contributes to the literature that firm innovative activities are considerably associated to board functions, and this relation is affected by government regulations.