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In order to enhance the advantages of financial service innovation for state-owned commercial banks in Shanghai Free Trade Zone, this paper puts forward the conceptual model of knowledge management in financial service innovation, analyze the influence factors of knowledge management for state-owned commercial banks in financial services innovation. A knowledge management system dynamics quantitative model based on financial service innovation was built with Vensim PLE, and the validity of the model has been verified. The results show that the model can better fit the process of knowledge management in financial service innovation activities, and conclude the influence degree of each factor in knowledge creation, knowledge sharing and knowledge application stage.

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