4 Answers

Knowledge is just what you know.
Being smart is your ability to think critically. applying what you know to real life and problem solving.

Knowledge is gathering the tools, Smart is the person who uses his "tools of knowledge" to get things done and make a difference.  Knowledgeable people usually hire the smart people to solve their problems. 

Knowledge is commonly referred to as "book knowledge", and those who possess it, as being knowledgeable, whereas a smart person can be considered to have common sense. The two concepts are often confused. To wit, I had a neighbor who graduated from Dartmouth and went on to be a cancer specialist (M.D.) He has knowledge as far as cancer goes, however, he is a moron; no common sense. His mother used to ream him out when he was playing with his friends, calling him a moron. There is one lousy rating after another on the internet about him; no bedside manner, rude arrogant....Don't be enamored with one's title. One can be uneducated yet smart, or a have all sorts of degrees yet be really stupid.

A knowledged person knows, a smart person does.......