In the contemporary age of information, organisations have realised the importance of “data” to innovate and thereby attain a competitive advantage. As a result, firms are more focused on understanding the potential to achieve data-driven innovation (DDI). Researchers too have focused on examining this novel phenomenon in a broader scope. In this study, we conducted a systematic and comprehensive review of the literature to understand the DDI phenomenon. The findings of this study benefit scholars in determining the gaps in the current body of knowledge as well as for practitioners to improve their data strategy to enhance and develop innovation capabilities.