The boundaries of organisations are fading away. Organisations are rapidly developing virtual elements that are blurred with the environment. Consequently, they are much more dependent on the surrounding networks of suppliers and partners than ever before. At the same time new success factors have emerged. Cash plus cheap labour is not anymore any proven formula to survive in contemporary business. The survival in dunamic networks requires the organisation's skill to renew itself continuously. Sluggish dinosaurs of the past will soon be wiped out from the most effective networks. Renewal means the ability to innovate, create new ideas, processes, methods ad ways to make business. Innovation doesn't emerge in a vacuum but requires exchange of knowledge and interactivity with the environment. Knowledge Management gives powerful tools to manage innovation and competence. Modern research of the networks shows the way of how to find the most important partners and how to nurture the partnership for explosive and mutual success.