Agile software development methods have been argued to enable innovation in software development. However, the existing research is scattered and further work would benefit from a common baseline. This study presents a systematic literature review on the broad theme of agile methods and innovations. By using an automatic search strategy for ten databases and complementing this search by a manual search strategy for the publication lists of the most active researcher in the field, 43 relevant articles were identified and included in this study. With a thematic synthesis, seven recurrent themes were identified. The results show that while the adoption of agile methods as innovations is well-understood, the agile methods effect on the innovation capabilities of a development team needs further work. Furthermore, the article shows that manual search strategy focused on the publication lists of the active authors is useful in literature studies on dispersed and little researched topics.