Service innovation not only provides important force to the modern service industry development, but also it is regarded as the principle force for the knowledge economy development. Based on the explanation of characters, main types and influential factors, the paper constructs an appraisal framework for service innovation and compares the service innovation ability between Guangzhou and other main domestic cities, then it claims that the service innovation level of Guangzhou is in the middle class, and the talents from knowledge intensive industry has provided a solid industry foundation and knowledge support for the service innovation. However,because of the limited research fund, technology output, relevant incentive strategy and measures, many service innovations fall behind Hangzhou, Beijing, Shenzhen and other main domestic cities. <<