Diversity in innovation teams has long been recognized as a double‐edged sword. While many theories and empirical findings point to the benefits of greater team diversity to spur creativity and innovativeness in the development process, it has also been argued repeatedly that team diversity might create barriers for collaboration and coordination, potentially hampering innovation teams’ performance. Therefore, research and practice must lead the way in tackling significant challenges of team diversity that might compromise innovation outcomes. To further complicate the situation, team diversity is not a clear‐cut attribute of a team. Rather, a team can be both diverse and homogeneous in a multitude of ways. Generally, the conceptualization of diversity distinguishes between job‐related diversity (such as functional or organizational diversity) and job‐unrelated diversity (such as diversity in team members’ demographics or geographic locations). Whether and how these different diversity types affect team processes, and thus the performance of innovation teams, are the focus of this virtual issue.