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This study bridges occupational health and innovation management by proposing psychosocial safety climate (PSC) as a key precondition for employee-driven innovation (EDI). EDI emphasises employees’ unique potential to generate and implement innovative ideas, with conducive working conditions, particularly those supporting psychological health, being crucial. Using a mixed-method explanatory design, the research draws on survey data from 19 work teams (n ¼ 317) and five in-depth interviews with managers to explore the relationship between PSC and EDI. Findings show that all four PSC domains — support and commitment, priority, communication, and involvement — significantly influence EDI. The study highlights how PSC leadership and communication about worker welfare play a critical role, offering groundbreaking empirical evidence linking PSC and EDI.