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Product development has become increasingly complex and resource-consuming. Consequently, internal development capabilities can prove insufficient for maintaining a firm’s competitive position. External cooperation and networking have been suggested as means for accessing necessary complementary knowledge or resources. In this paper, cooperation is studied as the key to improving competitiveness, especially in case of small firms. Product development distributed across organisational boundaries can also help companies mitigate the effect of uncertainty and turbulence. The empirical part of the study describes supplier cooperation in four case companies. The focus is on software product development cooperation with foreign suppliers. The paper contributes to better understanding of organising product development across a network of suppliers.