This systematic literature review (SLR) critically examines the intersection of innovation, entrepreneurship, and competitive advantage, analysing 251 peer-reviewed articles published between 2014 and 2024. The study aims to uncover prevailing themes, identify research gaps, and provide actionable insights for scholars and practitioners. Descriptive analysis reveals a marked increase in scholarly output on this topic. However, thematic analysis highlights core concepts such as entrepreneurial orientation, dynamic capabilities, and sustainability as key drivers of competitive advantage. Despite the robust work, the review identifies significant research gaps, particularly in emerging markets and interdisciplinary approaches. Additionally, the study underscores the need for longitudinal research to track the evolving relationship between innovation and competitive advantage in different contexts. This review advances theoretical understanding and offers practical implications for policymakers and business leaders, particularly in fostering innovation and entrepreneurship in today's rapidly changing global market. Future research should address the identified gaps by embracing more diverse methodologies and expanding the geographic and interdisciplinary scope of the analysis. By focusing on underexplored areas and calling for further investigation into digital transformation, sustainability, and emerging market dynamics, this SLR positions itself as an essential resource for academics, practitioners, and policymakers looking to enhance their understanding of innovation-driven competitive advantage.