Automation technology solution providers (ATSPs) offer tailor-made production solutions to their customers. In today's competitive manufacturing industry market, affected by rapid technological transformation, ATSPs need advanced technology skills and high innovation capabilities to develop the right solution for specific customer challenges. This paper is based on an empirical study of 19 small and medium-sized ATSP companies in an industrial cluster. It discusses the role of inter-organisational collaboration for small ATSPs to enhance innovation and mitigate the resource challenges that they face due to their limited size. A conceptual model for collaboration strategies is proposed to support ATSP developing production innovation.