Knowledge is the driver of our economies today, and of our societies (Roberts, 2001; Commission, 2004; Grant, 1996). This paper looks at the development from a systems-thinking approach to knowledge (Simon, 1962; Weick and Roberts, 1993 ; Hedlund, 1994, Spender, 1996; Tsoukas 1996) towards a more relational view on knowledge and knowing (Cook and Brown 1999; Carlile, 2004). I argue, that we do not understand, and consequently cannot support the complex social process of innovating with others across boundaries, if we only apply a hierarchical, divisional, system approach to knowledge. In order to meaningfully transform knowledge across boundaries we cannot separate it from knowing and context. We need to adopt a multi-level relational-practice view of knowledge and knowing, embracing the complex dynamic interplay between knowledge and knowing on different levels of the social: relating individuals, group relations and organizational rules. What would a coherent conceptual framework for innovation practice look like?