The aim of this paper is to analyze the extent to which Tunisian firms regard
corruption as a major obstacle to their product and process innovation. Using
firm-level data from the World Bank Enterprise Survey conducted in 2013, we
empirically test how innovation accentuates or mitigates the corruption obstacle.
We show that innovation has a negative and statistically significant effect on the
corruption obstacle. Besides, we prove that competition and the obstacle to corruption
are negatively related. This result teaches that the Tunisian firms face a
rent-shifting corruption.