- Innovation is the main element to obtain sustainable competitive advantage. Based on the report from Global Innovation Index (GII), Indonesia has ranked on 85th position. The rank is behind neighboring country in Southeast Asia. Indonesia still need to improve their innovation activity. However, there are not much literature that discuss the determinant factors in order to improve innovation activity comprehensively in developing countries, especially Indonesia. The objective of this article is to build a review from previous study and discover the determinant factors that can improve innovation activity. This article use systematic literature review. The result is that there are 7 determinant factors that can improve innovation activity in developing country. Those 7 factors are separated into internal factors and external factors.