This research aims to explore how the understanding of agile innovation work methodologies affect innovation teams and the progress of innovation projects. In a long-term research, three innovation teams were studied through questionnaires, interviews, audio-recorded interviews and rich notes from. The data was analysed using group development theories and knowledge taxonomy to determine the relation of the teams' estimated knowledge and their performance in relation to the teams’ group development status. The results indicate that innovation teams that are unfamiliar with agile innovation work tend to not seek collaboration due to uncertainty, which results in slow progress. When an innovation team’s surrounding organisation is unfamiliar with agile innovation methodologies it tends to not offer their support until the innovation team can prove progress, also slowing the progress down. The opposite is noticed when innovation teams and the organisation understands how to apply agile innovation work methodologies, collaboration occurs easily, resulting in positive progress. Further research is suggested.