[Purpose/significance] In the Internet era, the knowledge innovation is related to the knowledge network. Knowledge innovation which is beyond organizational boundary has become a frontier issue in the field of knowledge management. The paper attempts to explore the formation process of knowledge innovation in the knowledge network, and build a model of knowledge innovation based on network embeddedness. The paper enriches the knowledge management theory, and improves organizational innovation performance and ability of innovation. [Method/process] The paper is based on literature review of network embeddedness, external knowledge search and knowledge innovation, analyzes the general process of knowledge innovation, understands enterprise network embeddedness of relation and structure, and external knowledge searching and acquisition behavior, and builds a model of knowledge innovation based on network embeddedness. [Result/conclusion] The research concludes the knowledge innovation process is composed of knowledge acquisition, knowledge integration, knowledge creation and knowledge utilization; The enterprise which is in the center of internet searches and achieves organizational external knowledge by network embeddedness relationship and structure; The knowledge innovation model based on network embeddedness is a dynamic model where knowledge network and outside and inside organization interact.
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