In this chapter, I examine how pyramidal group structure and top executives’ concurrent engagements within group affect innovation of listed firms in China. The results show that listed firms in lower levels of group pyramid are less innovative, measured in terms of R&D expense and patent applications. Besides, a listed firm’s innovation activity changes when its CEO or board chair concurrently takes an upstream position, i.e. a position in an upper-level firm in the group pyramid, but the impact depends on the level of the listed firm in group pyramid. In general, the CEO’s or board chair’s upstream position enhances innovation when the firm is located at a lower level in group. I also find that busy CEO or board chair deters firm innovation. Overall, corporate pyramids deter innovation of low-level firms in group, but the problem is partially resolved by having CEOs or board chairs engaging in upper-level firms.