This paper proposes a quality knowledge value chain to show that how quality knowledge management lead to quality improvement and innovation Firstly, a review is made of the literature about the relationship between quality and knowledge. However, these researches provided little insight into what it means of to effectively deploy quality management. Based on knowledge value chain theory, we put forward a quality knowledge value chain. Then the elements and details of the chain are analyzed from quality activity perspective. Finally, in order to make clear the function of quality knowledge value chain, using Kaplan and Norton's balanced scorecard strategy map, we discuss the relationship among the chain, quality improvement and innovation and core competence.