Abstract: Both knowledge network and organizational learning have been viewed as major sources as innovative capabilities of companies under open innovation. This paper first discusses the connotation of knowledge network embeddedness and its measures. Second, it analyzes the relationship between and among knowledge network embeddedness, organizational learning and innovative capabilities. Third, it presents a conceptional model of knowledge network embeddedness facilitating innovative capabilities of companies emphasizing the mediating effect of organizational learning, and proposes some basic assumptions. Finally, through the investigation and empirical analysis of 139 questionnaires, we found the size, centrality, tie strength, and tie quality of knowledge network have a positive effect on innovative capabilities of companies. Organizational learning acts as a partial mediator between knowledge network structural embeddedness and innovative capabilities, and as a full mediator between knowledge network relational embeddedness and innovative capabilities.