This paper reports on a qualitative study, carried out at a Swedish aero engine manufacturer. The study was initiated to explore key indicators related to innovation capability in a Product-Service System (PSS) context. Developing PSS changes the dynamics of collaboration, since the offering of such systems usually involves a network of partners sharing the responsibility for a delivered function over a full lifecycle. In particular, this paper focuses on describing aspects related to external and internal collaboration, and it further discusses how to measure the company’s collaborative performance, taking into account both activity and effect measures.