There is little doubt that IT innovation can be a driving force for economic growth. Economic theories promote the notion of innovation adoption, in which technological slipover from technologically advanced countries advance growth in less technologically advanced countries. The ability to adopt these technologies is often reliant on previous experience and knowledge. Thus capacity building has been proposed as a central driver to enable the adoption of IT innovation. However, the adoption of innovation and capacity building are subject to significant barriers, which are particular to the context. By viewing IT innovation as a process where IT gets adopted, diffused and assimilated into the organization, we present a conceptual framework that fosters innovation through collaborative innovation spirals. The framework is developed through the analysis of a case study conducted in Ethiopia. The resulting framework presents researchers and practitioners with a potential tool for cross-cultural innovation.