The goal of this study is an investigation of the moderator role of knowledge-oriented organizational culture and leadership on the effect of knowledge management on innovation. The type of this research is practical and its method is the survey. Questionnaires have been used to conduct the research. Its target population includes knowledge-based companies in Mashhad, which are located in the Mashhad Science and Technology Park and Growth Center of Ferdowsi University of Mashhad. According to a random sampling, 89 companies from 125 active knowledge-based companies were selected. Multi-Regression method was used to test the hypotheses. Findings show, although managing knowledge has a positive effect on innovation, when moderator variables like knowledge-oriented organizational culture and leadership are there to overcome human obstacles toward innovation and managing knowledge, the organization is able to reach higher levels of innovation.

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