Digital innovation capability (DIC) has become a foundational differentiator for enterprises competing in fast-changing markets. As emerging technologies—AI, cloud computing, big data analytics, IoT and blockchain—reshape business models, organizations need reliable frameworks and measurements to evaluate their digital readiness and innovation capacity. This article provides a conceptual and empirical review of methods used to measure DIC, develops a comprehensive measurement model, and proposes an integrated framework for assessing digital capabilities at strategic, organizational, and technological levels. The study also introduces a Digital Innovation Capability Index (DICI) that enterprises can use for benchmarking. Findings emphasize that digital innovation capability is multi-dimensional, influenced by leadership orientation, technology architecture, agile culture, data maturity, and ecosystem partnerships. The paper contributes to theory and practice by clarifying constructs and offering practical tools for managers.