Globalization and other rapid changes in markets and technologies increasingly require companies to generate new knowledge in order to remain competitive. In order to innovate successfully, firms must generate knowledge faster than their rivals. This study develops and tests a conceptual model that focuses on how managerial controllable variables influence the level of knowledge generation in new product development. Based on literature and 'theory-in-use' field research in seven knowledge-intensive organizations, the authors developed research hypotheses and tested the hypotheses using data collected from 277 firms in high technology industries. The findings suggest that information technologies, organizational crisis, individual commitment, the R&D budget, and job rotation increase levels of knowledge generation, whereas lead user and supplier networks are negatively associated with the level of knowledge generation in new product development, and the influence of co-location of R&D staff is not significant.