Abstract: Knowledge innovation is a concept of history and economy. The clarity of its definition helps one understand the theoratical logic of knowledge innovation,and also helps one rationally plan the action of every subject. The affirmation of functional outskirt of a university in the state innovation system, especially the identification of the relationship between the functional outskirt and enterprises,will provide a proper guidance to understand the function of a university in innovation and the enterprisation of a university, and meanwhile provide a theoretical reference for the government to make an innovation system for universities. For a distinct statement of the above relationships, the author presents his viewpoints in the following four perspectives:1.in the connotation of knowledge innovation;2.in the functional outskirt of a university as a subject of knowledge innovation;3.in the similarity and difference between knowledge innovation of a university and the innovation of an enterprise;4.in knowledge capitalization and university enterprisation.