The growing importance of concepts as circular economy and industrial symbiosis paved the way for setting up a tighter set of interconnections between different sectors and collaborations within different companies belonging to different sectors. The purpose of this work is to examine how collaboration within small and big companies can influence business model innovation, including industrial symbiosis and circular practices within them. The company that was chosen for this investigation is situated in the Veneto region, Italy. This case study involves a manufacturer of recycled graphite pencils Alisea s.r.l which represents an important example of collaboration between companies of different sizes and encourages sustainable practices. In this context, the work attempted to analyze how strong specialization of the sector and collaboration between companies and how sustainability, implemented through the reduction of waste production and the use of by-products has influenced the business model innovation of the company.