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In service economy time, the service elements of alliance network are playing more and more role in the course of improving competition advantage and network value. So, its service innovation mechanism is being paid more and more attentions by academia and business circles. Service innovation is increasingly becoming a strong strength to promote alliance network develop. In this paper, the relevant theories on knowledge creation, alliance network and service innovation are analyzed at first. On the basis of this, the relation model of between knowledge creation and service innovation is set up, and the model reveals function mechanism of service innovation. Meanwhile, it puts forward to theoretical direction and research method for practice activity of alliance network.