The collaboration between higher education (HE) and education technology (EdTech) companies plays a vital role in developing digitallyembedded learning in the contemporary digital era. The partnership between HE and industry is widely recognized as a means to promote innovation. Moreover, it provides advantages to companies striving to fulfill client requirements. The HE-industry collaboration has garnered increasing attention in academic research. However, there is a lack of studies on the actors’ perspectives and on the required processes and other elements for conducting effective HE-EdTech collaboration in developing learning and teaching in HE. This study addresses this research gap by examining the interprofessional collaborative development process involved in the creation of video-supported collaborative learning. The qualitative research examines the factors of successful collaboration between HE and EdTech companies within the knowledge-building ecosystem framework, using ethnographic data. The findings indicate that the establishment of a knowledge-building ecosystem for the development of digitally-embedded learning in based on collaboration between key actors: teachers, teacher educators, EdTech companies, HE institutions, and students, the end-users and ultimate beneficiaries. The collaboration is manifested in open innovation, practice-based research, and research-based service development processes, and relies on goal setting, continuous dialogue, reflective assessment, commitment, and trust as key elements.