This paper explores a new way to understand sustainable innovation—new and potentially useful ideas, products, services, or processes to improve sustainability performance. To do so, I adopt a regeneration perspective—an emerging paradigm in sustainability research. Innovation in the regenerative paradigm, or regenerative innovation, seeks to cultivate relationships with nature, and local communities to create positive impacts by restoring, reconciliating, and reinforcing the quality of the social and ecological systems (SESs). This work conceptualizes and operationalizes regenerative innovation as a new construct, juxtaposing it with research on innovation in classical economics and strategy views, and on sustainable innovation in sustainability literature. Attempting to move the innovation construct into a new trajectory, this paper contributes to strategy research by recognizing regenerative innovation as a new, potential source of competitive advantage. I conclude the paper with theoretical implications and future research avenues.