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As a new kind of organizational forms -alliance network, the status of its service elements in the competition advantage and network value are being paid more and more attentions by academia and business circles. Service innovation is increasingly becoming a strong strength to promote alliance network development. 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 reveals the function mechanism of service innovation. Meanwhile, it puts forward to theoretical direction and research method for practice activity of alliance network.