Today’s world and its globalized business environment focus heavily on designing effective team climate based on innovation and collaboration to protect their corporate interests as well as market share. The referred corporate requirement is discussed and analyzed in the current study by attempting to evaluate the effectiveness of new product development team climate based on team collaboration to strengthen innovation process on the basis of a newly established research tool and a newly validated extended theoretical framework. The survey is conducted on 30 team member’s representing new product development (NPD) operations at three selected work locations (i.e., Finland, Norway and the UK) of a European multinational company. The results of the study reflected the desire to establish strong team climate potential supported through team collaboration to support innovation at the studied work locations.

However, the weak areas in operations management were identified as the real time team cooperation, effective communication process and timely completion of work targets, limitation in the capacity of data collection and record keeping. All the above referred areas are critically significant in building effective NPD team’s innovative capabilities to strengthen healthy NPD team climate supported through collaboration and innovation.