This systematic literature review examines the relationship between innovation strategy and firm competitiveness, analyzing 40 studies published between 2015 and 2023. The review uses the PRISMA method and includes studies from Scopus, Web of Science, PubMed, and Taylor & Francis. The findings indicate that innovation strategy has a positive effect on firm competitiveness, with most studies supporting this relationship. The review highlights the importance of innovation strategy in achieving competitive advantage and improving financial performance. It also identifies gaps in the literature, such as limited database coverage, exclusion of non-keyword studies, and the lack of recent publications. The study recommends further research on innovation strategy and firm competitiveness, particularly in different industries and contexts. The review also emphasizes the need for more studies using systematic literature reviews and PRISMA methods. The results show that innovation strategy is a critical factor in firm competitiveness, and future research should explore its impact in various sectors and contexts. The study concludes that innovation strategy significantly influences firm competitiveness and suggests that further research is needed to fully understand this relationship.This systematic literature review examines the relationship between innovation strategy and firm competitiveness, analyzing 40 studies published between 2015 and 2023. The review uses the PRISMA method and includes studies from Scopus, Web of Science, PubMed, and Taylor & Francis. The findings indicate that innovation strategy has a positive effect on firm competitiveness, with most studies supporting this relationship. The review highlights the importance of innovation strategy in achieving competitive advantage and improving financial performance. It also identifies gaps in the literature, such as limited database coverage, exclusion of non-keyword studies, and the lack of recent publications. The study recommends further research on innovation strategy and firm competitiveness, particularly in different industries and contexts. The review also emphasizes the need for more studies using systematic literature reviews and PRISMA methods. The results show that innovation strategy is a critical factor in firm competitiveness, and future research should explore its impact in various sectors and contexts. The study concludes that innovation strategy significantly influences firm competitiveness and suggests that further research is needed to fully understand this relationship.