Innovation has been traditionally recognized as one of the most important determinants of successful firms. Research exploring the antecedents to innovation has covered a wide variety of topics encompassing organizational-, process-, and individual- and group-level factors. Among these topics, the role of leaders in driving innovation efforts in their firms has received particular attention. This dissertation contributes to this important and emerging stream of research across four studies. First, a systematic literature review of the field classifies the different types of influence of top managers on innovation and proposes several avenues for future research. Subsequently, a survey of top managers in small- and medium-sized firms provides insights as to how risk propensities, perceptions of compensation, and job demands at the top management team can drive innovation decisions. Finally, a laboratory experiment uncovers how influence tactics used by leaders can induce risk taking decisions that support innovation in their firms.