The paper aims to examine why innovation network emerges and how it gets configured. To address that, we examine two cases of IoT (internet of things) technologies applied on public service in Brazil. By using the conceptual framework proposed by Ritala et al., (2016), we demonstrate that innovation network emerges because MNEs are under constant need for innovation and second they have limitation to pursuit and integrate complex knowledge on their own and for that reason cooperation becomes crucial. Such process is characterized by a dynamic complex process which the MNEs’ searching-acting-convincing on an opportunity require business and nonbusiness actors participation. The novelty, however, is that, the findings shows that the locus of innovation is not limited to the traditional business to business relationships but it can also arise from non-business actors such as NGOs and local government.