Abstract:The innovation value chain is very important for the sustainable development of the enterprises, because it can clearly show every link of the innovation activities, which would help the manager to optimize and upgrade the enterprises, and improve the weak links as well as paying attention to each link during the value chain. Based on previous literature, this paper first introduces the concept of innovation value chain, and analyzes the two easily confusing concepts of innovation process and knowledge value chain. Then it reviews knowledge source, knowledge transformation and knowledge exploitation. Furthermore, this paper also explains how to form digital knowledge network in the context of digital transformation. Finally this paper proposes three future research directions, namely the process of digital innovation or the specific forms, the types of participants or constraints in the digital knowledge network, and digital capabilities to coordinate resources. The research provides useful hints for the following research and practice of innovation value chain in China.