Abstract This systematic review aims to review the effect of innovation strategy on firm competitiveness and to establish a theoretical background for future studies in the innovation and firm competitiveness literature. A total of 40 studies covering the innovation strategy and firm competitiveness were from 2015 to 2023 and analysed via a PRISMA method using the descriptive content analysis. These studies were found in the Scopus, Web of Science, PubMed, and Taylor and Francis databases. The findings from this review show that a large majority of the reviewed studies has concluded that innovation strategy have a positive relationship and effect between firm competitiveness. This study offers the chance to empirically examine innovation strategy and firm competitiveness from various angles. Despite a rapid recent increase in publications and special issue calls, many opportune research avenues within the innovation strategy and firm competitiveness field require further investigation.
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