Revision with unchanged content. Knowledge management (KM) is on its way to becoming an integral business function and a new aspect of management for many organizations. Although it can be argued that public sector organizations increasingly face similar pressures as the pressures on the private sector, public sector organizations, partly because of their public ownership and limited competition, may not pursue KM as strongly and effectively as private sector organizations. It seems, therefore, reasonable to expect that there will be differences in understanding, best practice, and performance indicators between the two sectors and how they impact drivers for KM activity. This study tests empirically the basic KM arguments that KM in public organizations differs from that carried out in private organization. In the literature review, the key dimensions of KM are described (chapter 2). In Chapter 3, research model and the hypotheses were developed. Chapter 4 covers the analysis and the findings from the survey. Chapter 5 summarizes findings and connects them to the purpose of the study, and makes recommendations for further developments of KM in pubic organization with some conclusions. This book makes a contribution toward the knowledge and competences needed by researchers and practitioners in KM field.