In a significant way, firms are paying more attention to the concept of open innovation. By implementing open innovation, firms emphasize more on cross-boundary collaboration and strategic alliances to boost their R&D (Research and Development) performance. As a whole, this brings about two major impacts. First, firms’ R&D practices are shifting from close innovation model to collaborative innovation model. Firms are encouraged to expand their R&D activities outside their organizational boundaries. Second, firms become more active in knowledge sourcing and R&D strategic alliance. However, although there are increasing interests in open innovation, and we know relatively well on innovation alliance, we seem to ignore the knowledge creation process within the open innovation model. There are three theoretical gaps. First, when implementing open innovation, we need to integrate, and mix, different domains of knowledge, a process which is known as knowledge brokering. We seem to know little about this brokering process in innovation. Moreover, to understand knowledge brokering, we also need to examine the innovator’s practices, which is another missing piece in current literature. Second, our understanding of open innovation is still base on industrial R&D model. We know little on how open innovation could be used in service sectors. We also pay scant attention to how concept of service innovation could be used in open innovation in industrial organizations. Third, as firms introduce open innovation in their offshore R&D centers, research staffs will surely encounter institutional barriers and have to manage local contingencies. How may innovators turn the local challenges into enablers for innovation? This is another issue unanswered. This research plans to initiate a series of in-depth case studies to explore these issues. The findings will contribute to both the theory and practice of open innovation, service innovation and globalization of innovation.