This paper analyzes, through a longitudinal study of the film industry—a representative high-risk industry—the effects of innovation strategies such as entering new markets or introducing new resources on the risk of organizational mortality, as well as the factors that moderate this causal relationship. In recent strategic management research, the importance of innovation strategies that pursue the creation of competitive advantages through the development of new markets or resources has been emphasized. However, structural inertia theory from organizational ecology and myopic learning theory from organizational learning predict that innovation strategies that radically enter new markets or introduce new resources—departing from strategies focused on the efficient exploitation of existing markets or resources—will generate high levels of risk. Organizational learning theory further argues that most organizations tend toward myopic learning that focuses on exploiting existing markets or resources in order to avoid the risks of innovative change, but that this ultimately leads to another risk of failing to achieve long-term survival. If organizational learning theory's predictions are correct, such exploitation-focused strategies and myopic learning tendencies could pose fatal risks especially to cultural industry firms where creative innovation is a core requirement for competitive advantage, and thus cultural industry firms such as film production companies face a strategic dilemma of needing to pursue innovation for long-term survival while simultaneously avoiding the risks of innovation. From this perspective, this study empirically analyzes whether innovation strategies aimed at creating new markets or resources actually generate risks detrimental to organizational survival, and the effects of factors that moderate the risks of innovation. Based on an empirical study of the entire population of 891 Korean film production companies that existed from 1919 to 2004, the results showed that innovation strategies targeting new markets and resources did increase organizational mortality rates as predicted by organizational ecology and organizational learning theory; however, this effect of innovation strategies on organizational mortality rates weakened as environmental dynamism increased, consistent with what has been emphasized in the strategic management field.