The shift in industry towards Functional Product Innovation implies more collaborative efforts between the partners forming joint ventures, i.e. cross-company collaboration. Hence, new demands are put on collaborative technology. Insights into needs for both industry and collaborative design teams provide the possibilities for ‘virtual co-location' to be enhanced. Following a workshop format, the radical innovation workshop, industrial criterions for collaborative technology has been analyzed based on empirical data from five Swedish manufacturing companies. During the workshop three scenarios were put forward by the industry as most relevant; (1) the design review, (2) to on-site remotely collaborate with an expert and (3) the day-to-day communication. Based on these scenarios, three industrial criterions emerged, namely efficient collaboration, effortless setup of communication and the capability to create trust without touch. Technologies to support Functional Product Innovation seem to insist on meeting these criterions.