The aim of this research is to investigate the role of knowledge assets, knowledge management processes (knowledge creation, knowledge sharing, knowledge application, knowledge storage), intellectual capital elements (human, structural, relational or customer capital). Accordingly, a questionnaire survey has been designed to examine the above form based on a dataset of 189 staffs of tourist agencies in Irbid, Jordan. Questionnaires included 33 items have been used to get data from respondents. Multiple regression analysis has been performed to examine the hypothesis of research. This study identified that all knowledge management processes have a direct impact on innovation. The study also showed that human and structural capital has a positive impact on innovation in the tourist agencies in Irbid. The Customer Capital does not have a positive impact on innovation. The results have a huge impact on the tourism sector, especially tourist agencies in Irbid, Jordan.