It's all about lighting. The more light the better but you want diffused light, either through a white cloth or bounced off of a white reflector or photography umbrella. This will give you a softer, more even lighting without hot spots. To eliminate harsh shadows you really need lighting from multiple opposing angles. Most pros use 3-point lighting. The main light is from above and behind the camera and a little to one side. Fill light is from the opposing side and not as strong as the main light. A third light from above and behind the object will highlight edges and create contrast separating the object from the background.
A flash can be used if it is one that you can pivot the head and bounce the flash off of a reflective surface. A straight-on flash almost never looks good.
Work with the angle of the light and the angle of the object. You want some subtle shading to show the grindlines and countours of the blade. I position a white or metallic silver card so that it reflects in the blade and other reflective parts of the knife. White foam core board from an office supply store works great both as a white card to reflect in the blade and as something to bounce light where you need it.
Also consider that the more light you have, the wider aperature you can use giving you more depth of field, the amount of distance in focus from from to rear.
A light box is great for shooting knives and if you do it much, I would highly recommend that you invest in one or build one. If you do a liitle searching on the knife forums you can find some excellent tips from the pros like Jim Cooper and Buddy Thomason and even some tutorials on building an inexpensive light box.
I hope this helps. A lot depends on the camera and lens too.