This paper analyses inter- and intra-organisational interaction in cases of product development, which involves significantly new technologies that affect core product sub-systems. The analysis shows that in such cases, there is a need to collaborate with suppliers to learn about the new technology. Moreover, provided that the firm's existing technology is still relevant, there is a need to integrate the new technology with existing technologies. Therefore, close supplier interaction has to be associated with close intra-organisational interaction. However, even a case where there is a limited need to integrate the new technology with existing technologies, there is a need to justify the new technology internally and negotiate the process of adopting it within the organisation. The paper thus demonstrates a two-way relationship between organisational characteristics and multi-level technological change. On the one hand, different types of technological changes demand different kinds of R&D organisations and supplier relationships. On the other hand, decisions to implement technological changes are influenced by existing organisational structures and product development philosophies.