This systematic literature review examines the relationship between innovation strategy and firm competitiveness, aiming to establish a theoretical foundation for future research. The study analyzed 40 studies published between 2015 and 2023 from databases such as Scopus, Web of Science, PubMed, and Taylor & Francis. The findings indicate that a majority of the reviewed studies conclude that innovation strategy has a positive impact on firm competitiveness. The review highlights several research gaps, including the need for more studies on innovation strategy and firm competitiveness, the application of systematic literature reviews (SLRs), and the exploration of different models in various industries. The study also provides recommendations for future research, emphasizing the importance of empirical examination from multiple angles and the use of advanced software tools to reduce subjectivity in data analysis. The review concludes by suggesting that further research is needed to explore the unique implications of innovation strategy and firm competitiveness in different contexts.This systematic literature review examines the relationship between innovation strategy and firm competitiveness, aiming to establish a theoretical foundation for future research. The study analyzed 40 studies published between 2015 and 2023 from databases such as Scopus, Web of Science, PubMed, and Taylor & Francis. The findings indicate that a majority of the reviewed studies conclude that innovation strategy has a positive impact on firm competitiveness. The review highlights several research gaps, including the need for more studies on innovation strategy and firm competitiveness, the application of systematic literature reviews (SLRs), and the exploration of different models in various industries. The study also provides recommendations for future research, emphasizing the importance of empirical examination from multiple angles and the use of advanced software tools to reduce subjectivity in data analysis. The review concludes by suggesting that further research is needed to explore the unique implications of innovation strategy and firm competitiveness in different contexts.