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This volume represents the proceedings of the Second International Conference on Innovation through Knowledge Transfer, InnovationKT'2010, organised jointly by KES International and the Institute of Knowledge Transfer, and taking place in Coventry, UK on 7&8 December 2010. Featuring world-class invited speakers and contributions from a range of backgrounds and countries, the conference provided an excellent opportunity to disseminate, share and discuss the impact of university-business interaction through knowledge transfer in all its forms. There were two main motivations in initiating the Innovation through Knowledge Transfer series. The first aim was to provide the chance for publication on a subject where few opportunities exist already. The second motivation was to foster the development of a community from the diverse range of individuals practicing knowledge transfer. It is becoming clear that the delegates of the conference are drawn from a diverse community of practice. InnovationKT'2010 has succeeded in bringing together contributions from both the academic and practitioner sections of the knowledge transfer community. The programme contained seven invited keynote talks, 40 oral presentations grouped into eight sessions, and one interactive workshop. The proceedings contain 29 chapters drawn from this material. There were 91 registered delegates drawn from 10 countries of the world. The field of knowledge transfer is still immature, but these proceedings demonstrate that InnovationKT conference is making a significant contribution to its academic development.