Two of the most important issues in knowledge age are knowledge management and innovation. Companies that is able to control knowledge, able to develop the ability of innovation. Therefore, understand how to acquire, encode, diffuse, storage knowledge, and how to match knowledge and management system, is very important for organizations. Knowledge workers are the most important carrier of knowledge. They are the one who actually learn, share, use, and create knowledge. Thus, understand and pay attention to knowledge worker and the management of knowledge worker should be considered one part of knowledge management. Moreover, knowledge management should match corporation¡¦s competitive strategy. The purpose of this thesis is to examine the relationship among organizational characteristics, knowledge management, strategy of knowledge management, organizational innovation, and consider the influence of the strategy of knowledge management and organizational characters to knowledge management and organizational innovation. The results of the research indicate that: The lifecycle of a company has significant difference on organizational innovation. The scale of a company has also significant difference on organizational innovation. In addition to difference analysis, relation analysis indicates that ¡§connect performance and reward¡¨, ¡¨improve knowledge which is already there¡¨, ¡§leadership of knowledge¡¨, ¡§institutionalize the measurement of knowledge¡¨, ¡§organic organization structure¡¨, and ¡§culture of learning¡¨ has significant influence on organizational innovation. As the result, the suggestions are: companies should develop their manager¡¦s ability of leadership of knowledge; connect performance and reward; improve knowledge which is already there; institutionalize the measurement of knowledge; establish organic organization structure; and create the culture of learning.