CHALLENGE-DRIVEN INNOVATION: A SYSTEMATIC REVIEW OF CONDITIONS FOR LEADING INNOVATIONS THAT OVERCOME THE CHALLENGES OF OUR TIME

Challenge-driven innovation (CDI) has attracted increasing attention due to pressing societal, climate, and energy challenges. Addressing these requires multidisciplinary efforts and collaboration across sectors. This paper explores the potential and limitations of CDI as an emerging approach to organising innovation. Drawing on a systematic review of the period 2000–2024 across four major scientific databases, we identify twelve enabling conditions that appear central for organisations seeking to engage with CDI, including flexible resource allocation, independence in decision-making, a positive failure culture, networking, and open innovation practices. Leadership emerges as a critical enabler, shaping organisational culture and structural conditions. At the same time, the analysis reveals barriers such as context-dependence, governance complexity, and resource intensity, which may constrain the broader applicability of CDI. These findings have led us to define CDI and outline several conditions for its organisational development. The paper contributes to ongoing debates on mission-oriented and collaborative innovation by clarifying success factors, highlighting limitations, and outlining avenues for future research and organisational practice.