Knowledge and Innovation Management TheoryIntroductionIt can be said that the global economy in the recent post-industrial period can be regarded as a high-intensity atmosphere information. A good number of researchers claim that competition in global and local markets, market distinction as well as profitability are influenced by effective knowledge. Many definitions have been proposed to explain the term "knowledge", depending on the domain in which it is applied. In this particular context or rather in the business context, the term "knowledge" is used to refer to the state of awareness and ability to understand specifics, truths or information which is obtained through learning or experience. Certainly, in an organization or rather than a company, knowledge is considered an asset. However, unlike physical assets, this type of asset appreciates over time rather than depreciating (Amrit 2002). It is obvious that thoughts lead to new thoughts, and when knowledge is shared, the receiver is increased while the giver stays with it. In particular, knowledge creation by organizations is seen as fostering the competitive advantage of businesses operating in the modern global marketplace. This is the reason why most companies focus more on honing their knowledge creation expertise in different domains. According to modern organizational theory, organizations are viewed as systems that “process” information and “solve” problems (Nonaka and Takeuchi 1995). It is assumed that the basic task of an organization is how it manages information and decisions in a changing atmosphere. It is argued that enthusiastically managing a changing environment usually creates information middle of paper.... ..o. 1. P. 107-136Davenport, TH & Prusak, L., 1997, Working Knowledge: How Organizations Manage What They Know, Boston: Harvard Business School Press. Demarest, M., 1997, “Understanding Knowledge Management”: Long term Planning, Vol. 30, No.3, pp. 347-384. DeLong, DW, 2004, Lost Knowledge: Confronting the Threat of an Aging Workforce, Boston: Oxford University Press. Nonaka, I. & Takeuchi, H., 1995, The Knowledge- Business Creation, Oxford, United Kingdom: UniversityPress.Jenny, D., 2009, Innovation and Knowledge Management, Boston: Lambert AcademicPublishing.John, D & Dominique , F., 2001, Knowledge Management in the Innovation Process, New York, NY: Springer .Polanyi, M., 1966, The Tacit Dimension, London, United Kingdom: Routledge & Kegan PaulRod, M., Jim, B. & Mike, L., 2009, BlackBerry: The Inside Story of Research in Motion, Dallas: Key Porter Books.