Knowledge management (KM) is widely accepted as an indispensable management discipline. It has now emerged as the next likely source of sustainable competitive advantage. However, as to how knowledge management (KM) practices can be harnessed to leverage the pursuit of knowledge innovation has yet to be fully explored. This article discusses the significance of knowledge by describing the transition from “information revolution” to “knowledge revolution” – which enables various forms of knowledge to be absorbed, assimilated, shared and utilised. Next, it highlights the practice of knowledge management (KM) and explains why KM could enable knowledge innovations to evolve, and how information technology (IT) should be exploited for this purpose. It then proposes a management framework for leveraging knowledge innovation (KI) by focusing on knowledge-centred principles, knowledge-sharing infrastructures and knowledge-based initiatives, to offer insights into integrating concepts of knowledge management (KM) with innovation management (IM). In conclusion, it outlines the challenges of knowledge innovation (KI) that merit attention for organisations to better exploit its full benefits.