“Sustainability” and “innovation” have become buzzwords used in abundance in the media and in business practices to acknowledge the need for change that takes into account environmental considerations. This chapter focuses on the reasons why sustainability must be embedded into more innovation studies as a way for individuals and organizations to gain a competitive advantage in the global marketplace. Conceptual underpinnings of sustainable innovation are discussed in this chapter as a way to understand its meaning and application to entrepreneurship studies. Suggestions for future research, taking a transdisciplinary perspective and multiple units of analysis approach, are stated. This helps to highlight the rich and diverse ways that sustainable innovation can be construed in the literature but also used in practice.