With the rapid development of new generation ICT such as artificial intelligence, blockchain, cloud computing, big data and Internet of things, innovation activities can no longer be conducted by pre-determined participants according to the traditional linear process. In digital economy, the enterprise can use more and more resources. Based on this, the enterprise needs to develop new capabilities, strategies, systems, etc., in order to meet the personalized needs of users. The innovation model, known as “digital innovation”, reshapes physical products and the logic of value creation of enterprises, and even reshapes the form of business. Actually there is a lack of research in digital innovation based on value creation. This paper systematically reviews the researches on digital innovation at home and abroad, which provides a useful reference for accelerating the research on digital innovation and carrying out digital innovation practice in China. It focuses on the following three questions: “what is digital innovation” “why can it create value” and “how to create value”. In terms of “what is digital innovation”, this paper introduces the concept, definition, characteristics of digital innovation and relationship with IT innovation. On the aspect of “why can digital innovation create value”, this paper explains and develops the theory from the three perspectives of subject, structure and action. In terms of “how to create value”, this paper sorts out three ways: efficiency, convergence and generativity. Although some new studies have recognized that the stages of digital innovation are not clearly defined, the theoretical framework does not reflect this. The existing research also fails to clearly explain the value creation logic of digital innovation. Through the content analysis of the literature, this paper summarizes the concept connotation of digital innovation from different perspectives, summarizes its characteristics, and sorts out the connection and difference between digital innovation, IS innovation and IT innovation. On this basis, the theoretical perspective and mechanism of value creation of digital innovation are sorted out. Finally, the future research of digital innovation is prospected from the perspectives of research level, research method, research theory and research object. To sum up, this paper believes that digital innovation research has developed from the discussion stage of basic issues such as concept definition to the research stage of multiple perspectives such as analysis of causes and consequences, and is forming an integrated analysis framework. In terms of concept connotation, the definition of digital innovation gradually turns to comprehensive consideration from the dichotomy of result and process. The theory of value creation is explained and developed from three perspectives: subject, architecture and action. In terms of the way of value creation, there are three ways: efficiency, integration and production. Around the three questions of digital innovation mentioned above, the contribution of this paper is mainly manifested in three aspects: First, through content analysis and systemic literature review, the digital innovation research at home and abroad are reviewed; Second, it provides a useful reference for accelerating the research and practice of digital innovation in China; Third, it summarizes the shortcomings of existing researches on digital innovation, and proposes specific and feasible research directions in many aspects, which lay a foundation for future researches on digital innovation by domestic scholars.