Our two main conclusions are, first, KM significantly increases the success with product innovations and market novelties and, second, KM has a differentiated effect on different types of innovation. With regard to the first finding, that means that firms which apply KM have on average a higher success with product innovations and a much higher success with market novelties compared to non-KM firms. Regarding our second conclusion, namely that KM impacts differently on different types of innovation success, we find that, all other things remaining equal, product innovation success and success with market novelties are both significantly positive affected by KM, while process innovation success is not.