In developing economies, universities are increasingly pivotal for driving innovation-led growth. However, their potential is often constrained by a lack of strategic knowledge management capabilities, particularly in the area of Intellectual Property (IP). This study examines the effect of IP awareness on innovation within Zambian higher education, using Mulungushi University as a case study. Grounded in innovation systems and knowledge management theories, it investigates how understanding IP rights, protection, and commercialisation influences research output, technology transfer, and entrepreneurial activity. Employing a mixed-methods design, the research surveyed academic staff, researchers, and students, and conducted interviews with administrators and IP officers. The findings reveal a strong positive relationship between IP awareness and innovation outcomes, including patenting, commercialisation, startup formation, and industry collaboration. Key constraints include absent IP policies, limited training, and weak enforcement. The study concludes that integrating IP into curricula, enhancing capacity-building, and strengthening institutional support can significantly boost innovation performance in Zambian universities.