In this paper, we defined the knowledge government as the government in which its knowledge activities are highly encouraged for its productivity. From the perspective of this concept, we attempted to examine the four processes of knowledge activities, that is, knowledge creation-proliferation-utilization-accumulation. Empirical analysis shows that all four independent variable, IT-Engine, Institutional System, Individual and Organization Factors affect government innovation. Since institution and IT-Engine variable work independently, these are required to perform at the same time. However, IT-Engine and institutional variables affect organizational innovation by influencing individual and organization. This implies that IT technology and institutional system should be a prior concern for the governmental innovation. Because organization and individual variable are affected by the IT-Engine and institutional foundation respectively, it could be inferred that innovating individual and organization factors should be performed by effectively implementing IT-Engine and the institutional foundation, including team system and the merit-based payment.