Purpose The purpose of this paper is as follows: studying a case for technological innovation in Iran; studying the process of network creation; studying different challenges in finding, forming and performing of a collaboration network; studying comprehensive identification and analysis of the challenges in the network creation process; studying an active collaboration network in the field of medical equipment; and studying a network with different partners (consisting of a large company, a small- and medium-sized company, two subcontractors, three universities, a start-up, an accelerator and a venture capital fund). Design/methodology/approach The qualitative research method has been used because of a deep and rich analysis of the studied network. The study also provides an overview of finding and forming of partners and details of collaborations in the network, including partner’s goals from network entry, initial negotiations between members, business plan, shared resources and final results are expressed. The data used in this study has been collected by a totally seven semi-structured interviews. To analyze the collected data by open coding, the MAXQDA12 software was used and the basic concepts were identified and were categorized based on their similarities. Findings The studied network was identified as a strategic alliance. Details of finding, forming and performing of the studied network were explained. In total, 4 collaboration models and 28 different challenges in the network creation process were identified. In total, 28 different challenges were divided into 7 categories (based on their existence or absence in each of the 4 identified collaboration models). In total, seven categories of challenges were analyzed completely and the relations between challenges and partners of collaboration models were studied. Originality/value The collaboration network studied in this research involves several technological collaborations among different actors. Saadat, as the hub of this network, has been involved in all these collaborations, and other members have joined the network in accordance with network requirements and their capabilities. This network has been formed and developed with the aim of developing and producing various modules of vital signs monitoring since 2009. Some of the collaborations in this network, which are for production of a specific module and require long-term collaboration between the partners (such as the production of electrocardiograph or heart attack rapid diagnostic module), continue to be ongoing and some of them that focus on research and development or acquisition of technical knowledge (such as academic collaboration) after the specified result has been ended.