According to literature on teams and group learning it is important for heterogeneous teams to share knowledge, through the use of different forms of interaction. However, little is known about how different forms of interaction influence knowledge sharing and secure progress during innovation processes. In order to achieve an increased understanding, literature concerning teams and group learning are integrated within a case study of Public-Private-Innovation partnerships (PPI). Specifically, the distinction between different forms of interaction, such as collaboration and cooperation is used to clarify how knowledge sharing and progress are influenced during innovation processes. Three PPI projects have been chosen due to the particularly challenging nature of their composition; consisting of heterogeneous members from both the public and private sectors with dissimilar logics. Overall, our findings point out that 1) those heterogeneous teams that are able to continually integrate their team members' heterogeneous knowledge through a balanced use of collaborative and cooperative interaction forms seem to secure progress during the innovation process, and that 2) those heterogeneous teams that are able to continually re-establish a shared knowledge base, when it has been challenged by a critical incident, seem able to achieve progress during innovation processes.