In the era of Industry 4.0, fostering innovation through strong collaboration among universities, industry, and government is crucial. However, the Tanzanian economy has faced challenges due to, among others, weak links between these entities. To address this, Sida initiated the Innovation Systems and Cluster Development Program (ISCP-Tz) in partnership with the University of Dar es Salaam. This was followed by a program at COSTECH focused on fostering innovation for socio-economic development. As part of these programs, 15 clusters, including KIWANGO Leather, were selected for documentation of their experiences. KIWANGO Leather exemplifies successful collaboration between cluster firms, the university, local government, and research institutions. Operationalizing guidelines for collaboration led to cooperative innovations, knowledge exchange, internships, and long-term partnerships established through Memorandum of Understanding (MoU). The cluster's experiences highlight a less-linear, inclusive innovation process with positive outcomes. Thus, this paper not only illustrates a less linear, inclusive innovation process, but also its results can motivate actors in emerging innovation ecosystems in the Global South to adopt and scale up suggested approaches for knowledge co-creation benefitting sustainable development. By adopting these approaches and fostering collaborative networks, countries can leverage their resources and expertise to drive innovation, create economic growth, and address societal challenges.