With the emergence of the knowledge economy, organizations are beginning to see a need to apply knowledge management (KM) practices to their business activities. While knowledge management (KM) has gathered considerable momentum to be a vital source of competitive advantage, how its role could harvest knowledge assets for innovation has yet to be firmly established. This chapter aims to address this issue by examining how innovation can be fostered through knowledge-centered principles. It first describes the globalization of economies and the coming of the new knowledge age as the backdrop to Singapore’s vision of transiting into a knowledge economy. Then it discusses how knowledge management (KM) practices can be harnessed better for innovation management and explains why organizations should foster innovation by adopting an evolving set of knowledge-centered principles. Next, based on the case of Singapore Airlines (SIA), it provides a theoretical review of these principles. Finally, it outlines the future challenges of exploiting knowledge for innovation.