By 2000 two things have become clear. First, the roots of international competitiveness lie in the microeconomic fundamentals of an economy. Macro-economic factors play a role in creating the environment for competitiveness but are not sufficient to enhance prosperity. Second, international competitiveness results from firm level choices that produce distinctiveness, not from replicating the choices of other firms, regions or nations. Now more than ever we live in a world that moves at a bewildering speed. Innovation is an important topic in the 21st century. Innovation management has become a compulsory path to sustained enterprise growth. In today’s society, intellectual capital has replaced the more traditional meaning of the capital needed for success in business or in life. Knowledge management is now recognized as the management of the 21st century, therefore understanding knowledge management processes and factors leading to its success or failure is an important key to help managers identify and understand what is required to make knowledge management work.