Purpose – The purpose of the paper is to extend the understanding of innovation research and its contextual boundaries.

Design/methodology/approach – The paper opted for a systematic review in reviewing literature on innovation. Variation in innovation research that is conducted in the agricultural and forest industry context was analysed. In particular, the review compared type of innovation under investigation and innovation at different levels.

Findings – The paper provides insights on the importance of industry context to innovation research. It was found that industry context significantly separate the type of innovation under investigation and innovation at different levels.

Research limitations/implications – The findings have implications for our understanding of the sources and directions of innovation, and the formation of innovation at the level of the firm and the industry. Also, the review provides a relevant foundation for further research.

Practical implications – The review provide a ground for managerial decision-making regarding innovation.

Originality/value – The review is unique in its emphasis that reviewing studies of innovation requires the consideration of industry context.