Technology and innovation are key drivers of economic growth and global competitiveness. However, technological (computer-implemented) innovations are extremely heterogeneous in value. In this study, we investigate the impact of social capital accrued by inventors from collaboration networks in which they are embedded on value of software innovation. Based on empirical analysis on software patents data collected from United States Patent and Trademark Office, we find that the quality of a team’s external direct contacts significantly influence the value of innovation while the quality of indirect contacts on the other hand has no significant impact. In addition, teams that have access to diverse knowledge across multiple regions are more likely to produce valuable innovations. Our results suggest the importance for firms to understand interpersonal collaboration network of inventors across traditional firm and regional boundaries to implement effective hiring, improve team productivity and create valuable innovations.