Abstract:The issue "Is knowledge management a science or an art" is discussed on the basis of knowledge utilization and innovation. The implication of science and art is defined at first. Different kinds of knowledge (explicit and tacit, individual and collective) related to their applications and limitations in various areas of management especially in the innovation are investigated . The conclusion is: management practice is art, general principles and rules belong to science. Management is both a science and an art, moreover it is the fusion of science and art.