Building on extensive literature reviews, a case study method with explorative in-depth field interviews with three innovation teams, and participation in two innovation projects, this paper fills identified research gaps by proposing a customer value based opportunity identification (OI) framework, which is composed of the occurrence of the customer value space mismatch (CVSM), a customer value based OI process, and individual attributes of the innovation aspirants. According to research findings, this research suggested what target customers value to be a customer value space (CVS) of a business and validated the CVSM to be a direct, precise, and systematic source of OI. Specifically, dimensions and driving factors of the CVSM are constructed. Furthermore, this research identified customer value based OI consists of four interactive stages of reconceptualization, exploration, creation, and evaluation. Additionally, the success of the customer value based OI process is influenced by entrepreneurial cognitive schemas, creativity, and innovation strategic logic.

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