Aiming to provide a theoretical background and empirical insight regarding knowledge management and innovation in the digital era, this study offers a comprehensive literature review on how contemporary organizations develop strategies for knowledge creation, sharing, and exploitation. Since innovativeness can have a significant impact on knowledge management practices in different organizations, this study aims at exploring the diversity of approaches labeled as knowledge management as well as the relationship between knowledge management, innovation and organization's performance. Hence, understanding how this concept works has become crucial for encouraging breakthrough innovations that will have a major impact on global economic growth. Since, in order to create an environment for knowledge-driven growth, it has become absolutely necessary to ensure the investments in knowledge, science, technology, education, and human capital, the Global Innovation Index was introduced as a key tool of detailed metrics for 126 countries worldwide. According to the Global Innovation Index, significant investments in innovation and the creation of knowledge as well as other intangible assets are central to this goal. This study aims at providing an overview of how significant investments in knowledge, science, technology, education, and human capital can foster innovation, and adequately address the knowledge management -while ensuring a sustainable solution.

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