Innovation is a necessity for the survival in the dynamic and complex environment companies are currently in. Innovation is not only the result of a creative development process, but comes out also from the value adding process itself, and derives from the generation of knowledge, including the interaction and application of knowledge for market success. Therefore, the ability to collect all possible knowledge and trigger it for success is of great importance for being competitive. This is also the main focus of participatory design activities. In this work, with a special view on the importance of knowledge management, an approach using the analysis of relevant and available knowledge has been set up for the determination of suitable methods for participatory design activities. In detail, objectives of knowledge management are identified according to different requirements of the innovation lifecycle. Cognitive and technology gaps among participants are further analyzed to provide an in-depth view on the problem of participatory design. With the matching of problems with the potentials of possible participatory design methods, proper methods are further identified, which helps to realize objectives of knowledge management, in the end leading to the success of value adding.