Abstract: Abstract: In the age of globalization, innovation is an enduring debate in enterprises’ international operations, the cross-border knowledge spillover and competing for knowledge between different countries have been underscoring the importance of innovation. Based on Hofstede’s cultural theory, this paper analyses the effect of national culture on innovation, the result shows that power distance’s effect on innovation had diminished over time, however, other culture aspect such as individualism, uncertainty avoidance and masculinity have strong and lasting effect on innovation. When implementing innovation strategy, MNES should take national culture into account.