Location awareness is an essential characteristic of cognitive radios as well as networks. In this article a location awareness engine architecture is proposed for the realization of location awareness in cognitive radios and networks. The proposed architecture consists of location estimation and/or sensing, seamless positioning and interoperability, statistical learning and tracking, security and privacy, mobility management, and location-based applications. However, the focus of this article is on location-based applications where we demonstrate the utilization of location information in cognitive wireless networks by presenting some representative location-assisted network optimization applications such as location-assisted spectrum management, network planning and expansion, and handover. Our study unveils that location information can be used in cognitive wireless networks to optimize network performance. Possible solutions to the implementation issues are proposed, and the remaining open issues are also addressed.