Abstract This paper puts forward the concept of dynamic institution environment and discusses the dimensions of uncertainty and complexity of dynamic institution environment from regulative institution, normative institution and cognitive institution. Based on the theoretical analysis of seeking political connection and promoting innovation capability of corporate innovational strategic response under the complexity and uncertainty of dynamic institutional environment, this paper constructs the theoretical framework of the relationship between dynamic institutional environment, strategic reaction and innovation performance. Under the different conditions and different evolution of dynamic institutional environment, it reasoned that choosing different strategic response, will have different strategic results, furthermore the positive impact on the performance of innovation is also different.
