Active participation in joint innovation projects with other organisations. These may either be other enterprises or non-commercial institutions.

The partners need not derive immediate commercial benefit from the venture. Pure contracting out of work, where there is no active collaboration, is not regarded as co-operation. Innovation co-operation can take place along supply chains and involve customers and suppliers in the joint development of new products, processes or other innovations. Innovation co-operation can also involve horizontal collaboration, with enterprises working jointly with other enterprises or public research institutions.