A novel method based on spectral Green functions is presented for the simulation of driven open quantum dynamics that can be described by the Lindblad master equation in Liouville density operator space. The method extends the Hilbert space formalism and provides simple algebraic connections between the driven and non-driven dynamics in the spectral frequency domain. The formalism shows remarkable analogies to the use of Green functions in quantum field theory such as the elementary excitation energies and the Dyson self-energy equation. To demonstrate its potential, we apply the novel method to a coherently driven dissipative ensemble of 2-level systems comprising a single "active" subsystem interacting with $N$ "passive" subsystems -- a generic model with important applications in quantum optics and dynamic nuclear polarization. The novel method dramatically reduces computational cost compared with simulations based on solving the full master equation, thus making it possible to study and optimize many-body correlated states in the physically realistic limit of an arbitrarily large $N$.