In this paper my endeavor is to explore the meaning and implication of collaberation within a dynamic frame which I refer to a capacity. First I review the collaboration literature from an innovation perspective and then develop a framework that enables me to engage with the data we collected during the Euro-India Innovation Mapping project funded by the European Union under the FP-7 program. The idea is to refine theory and contribute to a better understanding of collaborative as a capacity firms can build creating the environment of collaboration both within and outside. I conclude this paper discussing the new insight on collaborative capacity (CC) of firms and their implications for ICT collaboration and firm innovativness.