Abstract:Existing research on innovation network mostly focus on the micro level of individual network or the macro level of overall network, with less attention paid to the formation mechanism of network community and its impact on enterprise knowledge innovation. Therefore, this paper explores the formation mechanism of network community based on the faultlines theory, and analyzes the impact of enterprise location embedding characteristics and network community structure characteristics on enterprise knowledge innovation.Then, this paper proposes reference suggestions for isolated enterprise in innovation network, core enterprise within network community, and liaison enterprise between network communities to effectively embed innovation network and improve innovation performance. Research has found that the degree centrality of enterprise within network community, the betweenness centrality of enterprise between network communities, the stability of network community, and the closure of network community all have an inverted "U" shaped effect on enterprise knowledge innovation.