This paper shows in theory how a knowledge management system can be built as a human resource management (HRM) function. The solution builds on the notion of innovation benchmarking. A case study from the company ST Ericsson illustrates the discrepancy between what the company needs to do and what the HRM function is able to support when it comes to innovation. The study shows the ability of employees in the company to innovate within key success factors. More worryingly, it also shows key areas where the company is not able to compete and where it is not getting any support from the HRM function. At the end, we identify a number of directions for future research in the field of innovation benchmarking as it relates to HRM policies.