Since the 1990s, the entrepreneurship literature has given more attention to institutional theory as an essential element for defining startup incentive structures (Aldrich & Fiol, 1994; Baumol, 1990, 1993). Three decades of research have enriched the topics and progressively deepened the levels of analysis (Acs et al., 2018; Bruton et al., 2010; Shane & Foo, 1999; Su et al., 2017). Introducing institutional factors has boosted entrepreneurship research with novel insights about the entrepreneurial process, entrepreneurial motivation, opportunity identification, and entrepreneurial cognition at the meso level, breaking through the traditional framework of enterprise micro-analysis. Innovation-driven entrepreneurship, unlike traditional opportunity- and discovery-based entrepreneurship, is a substantial driver of technological innovation and incremental social progress, and simultaneously leads institutional innovation. Entrepreneurs, therefore, are subject to institutional constraints while, at the same time, they are the economic agents that reshape institutions. Therefore, institutional theory serves as a fundamental theory for innovation-driven entrepreneurship.