Evolutionary theory focuses on the dynamic process of organization birth, growth, maturity, and death, emphasizing the agency of environmental factors. The theory argues that organizations passively endure environmental selection, and only those that have certain variations suitable for the environment can ultimately survive the resource competition and environmental selection. However, this theory faces many challenges in the context of innovation-driven entrepreneurship. The innovation-driven entrepreneurship context features highly circulated data, information, knowledge, and human resources; significantly enhanced entrepreneurial ecosystem support; and high uncertainty in the new globalization context. This chapter reviews the development of evolutionary theory, its application in the field of entrepreneurship and propose future directions of evolutionary theory in the context of innovation-driven entrepreneurship. Combined with practical development and theoretical exploration in the context of innovation-driven entrepreneurship, this chapter aims to further enrich evolutionary theory and provide practical guidance for innovation-driven entrepreneurship.