We present a framework of how family involvement influences innovation management based on ability (discretion to act) and willingness (disposition to act), two drivers that distinguish family firms from non-family firms and lead to heterogeneity among family firms. Paradoxically, family firms have superior ability yet lower willingness to engage in technological innovation. Resolving this paradox should yield new insights about innovation management in general. We summarize and position the papers in this special issue according to these drivers and set out an agenda for further research that will contribute to a better understanding of family firms’ heterogeneous and paradoxical behaviors.