Organisations are often dependent on each other for knowledge and problem-solving skills in technological innovation. Integration of problem-solving efforts across organisational boundaries is an essential managerial task in such collaborative activity. Knowledge and problem-solvers required in the development of semiconductor components are found to be distributed across the customer–supplier interface. A field study examined problem-solving interaction in this context. Data from 12 projects and 52 embedded cases of design iteration were used to explore the relationship between project definition, problem-solving interaction and managerial response to interaction needs. Projects defined closer to the frontier of knowledge in product concepts and manufacturing technologies were found to require more interaction between problem-solvers engaged in interlinked design tasks. An overlap in participation in design stages between collaborating organisations and co-location of problem-solvers were found to be the managerial response to higher interaction requirements. Hypotheses are developed and implications for research and practice are explored.