Purpose

The concept design-driven innovation focuses on innovating product meanings. It has been studied from a variety of perspectives and contexts since the early 2000s. However, a complete overview of the literature published in this area is currently missing. The purpose of this study is to provide a comprehensive understanding of how design-driven innovation contributes to value creation in product development.

Design/methodology/approach

In this systematic literature review, 57 papers and book chapters that cover design-driven innovation were identified and analyzed. An iterative coding process was followed to derive five facets of design-driven innovation that contribute to value creation.

Findings

Design-driven innovation creates value by focusing on the intangible values of products. The following five facets of design-driven innovation that contribute to value creation were identified: development of new product meanings, knowledge generation, actors and collaborations, capabilities and process. These facets and their interrelations are presented in a theoretical framework.

Practical implications

The main practical implication of this study is that it is now clear that the five facets of design-driven innovation are interrelated and reinforce each other. Therefore, companies need to approach design-driven innovation from a holistic perspective.

Originality/value

This paper contributes to theory by presenting the theoretical framework that provides an overview of available knowledge and that creates a context for future research.