The origins of this paper can be located in the participation of the co-authors in the development of collaborative models of practice-based research. The basis of the inquiry has derived from a collaborative partnership between a University and a variety of schools in the West Midlands, which currently belong to a thriving network. In this context the objective of the research project has been to reach a deeper understanding of the interrelationship between research, evidence based practice and knowledge transfer. The focus on the emergence of 'knowledge-based networks' has been identified as a key dimension in this process, in particular the means by which individual teachers knowledge of practice becomes 'embedded' within the school culture. The paper seeks to map how these knowledge-based networks have developed as interorganisational mechanisms for the spread of innovative ideas that facilitates the sharing of practice. More specifically it seeks to understand how knowledge is acquired and utilised at three different levels by:- individual teachers; schools; and finally networks. A starting point for the research is seen as examining the assumption that networks have a greater capacity for handling and transferring knowledge compared with schools. In this context, it is argued, that because networks are not always based on shared values that can remain constant it is important to consider the existence of tensions between members. It is further argued that the success of networks can be constrained by capacity overload due to the sheer volume of exchanges that potentially results in lower quality ideas filtering out from them. These drawbacks also have specific repercussions for the transfer of knowledge, especially if it is being inappropriately imposed on schools in a disabling way, resulting in them becoming unwilling recipients. Furthermore the paper questions whether specific school 'cultures' possess the necessary absorptive capacity as recipients of new knowledge in order to effectively assimilate and sustain it. This raises important issues, such as whether particular mechanisms are required to be in place in the schools before knowledge can hope to be embedded. The paper finally examines whether, in spite of these constraints, the complex role of networks in knowledge transfer can be effectively sustained through involving a range of dissemination techniques. Dissemination, in this context, is seen as a vital component that can operate at different levels. It can potentially enable knowledge transfer to be extended beyond the individual exchange of information toward the articulation of appropriate innovative models that can then be adapted by other distinctive 'school cultures'. This inquiry also has implications for the development of knowledge-based models in networks in different countries of Europe, particularly those who are members of the Learning Teacher Network.