There is a known connection between good knowledge management (KM) and innovation. This briefing identifies and explores ways in which KM can drive innovation within firms. The author compiled data from a detailed literature review. She then added practical elements to the theoretical groundwork in the literature by interviewing representatives of a carefully selected group of innovative organizations to gather best practices. The research shows that KM best practices are contextually appropriate, engaging, and flexible. The ease with which information flows, the culture that supports sharing it, and the ability to make cross-organization connections all contribute to innovation in an organization. However, maintaining an environment, culture, and practices that nurture knowledge exchange, application, and impact takes commitment.