The study aims to assess corporate governance and innovation in selected listed companies at Bahrain Bourse. The study sample included 39 companies in the year 2013. The study built one Linear Regression Model to study the relationship between corporate governance and innovation. After testing the first hypothesis, there is an accepted level of corporate governance in selected listed companies at Bahrain Bourse. And after testing the second hypothesis, there is no relationship between corporate governance and innovation in selected listed companies at Bahrain Bourse, whether the corporate governance is strong in selected listed companies at Bahrain Bourse or not, it has no relationship to Innovation. In Kingdom of Bahrain the innovation is weak due to the fact that Bahrain imports innovation from other countries. The study recommends that all companies listed in Bahrain Bourse to send their employees for special courses on corporate governance, which shows its benefits and to increase their awareness and advises to conduct a workshop of innovation in companies listed in Bahrain Bourse by professional institutes