Understanding the contextual embeddedness of individuals’ mindsets is imperative for our understanding of innovation and entrepreneurship. Diverging mindset conceptualizations have, however, resulted in the fuzziness of mindset research. With this taxonomy, we provide not only a theoretical analysis of differences and similarities across mindset conceptualizations but also six conceptual dimensions for a taxonomy of mindsets, namely, (1) relevant root constructs to operationalize mindsets, (2) the nature of mindsets, (3) behavioral implications, (4) contextual embeddedness, (5) level of analysis, and (6) causal relation of mindsets to other phenomena of interests. Our dimensions represent a continuum of underlying conceptual assumptions and a framework for scholars to explore innovative and entrepreneurial behavior based on mindsets. Furthermore, we propose a theory-driven definition for the innovation mindset resembling the entrepreneurial mindset, and we offer future research avenues to better understand the potential of mindset-based research for inclusive innovation and entrepreneurship.