In the 21st century, global corporations have accelerated knowledge sourcing and innovation activities in the global network. In the process, these firms have diversified global knowledge sourcing and creation modes which include overseas R&D labs, M&As, and open innovation. I investigate the evolution of global knowledge sourcing and innovation with a special focus on these major modes. I also examine the current status of global knowledge sourcing and innovation activities of Korean firms and review existing studies on those of Korean firms. Although strengthening global knowledge sourcing and innovation activities become imperative for Korean firms which face tougher global competition, they are still in the early stage as opposed to leading global corporations. I suggest how Korean firms should beef up their global knowledge sourcing and innovation activities. Based on the review of existing studies on this topic, I conclude this paper by suggesting the future research directions as follows. First, researchers should adopt more comprehensive and multi-level frameworks. Second, future research should take more dynamic and evolutionary approaches. Finally, researchers should investigate global knowledge sourcing and innovation activities of firms from emerging economies and identify similarities and differences between firms from advanced countries and those from emerging economies