Makerspaces are a relatively new phenomenon that seem to create an innovative environment for individuals to work on projects and learn about technology. This article presents a grounded theory study, which investigates the impact that makerspaces have on innovation. Strauss and Corbin's grounded theory methodology is used to research this exploratory topic. The data sample consists of 16 interviews of members of a makerspace in Shanghai, China. Data analysis was conducted abiding by Strauss and Corbin's coding framework, entailing open coding, axial coding, and selective coding as well as coding tools, such as the coding paradigm and the conditional matrix. Collaborative learning was identified as the core phenomenon of this research, and The Collaborative Learning and its Outcomes Theory was created. The emergent theory contributes to the understanding of how makerspaces impact outcomes, such as innovation and venture creation, as well as explain how collaborative learning in conjunction with other modes of learning can facilitate learning at various complexities. As such, this study's contributions are in developing the theoretical understanding of makerspaces as well as collaborative learning. It offers managerial and pedagogical implications that can help create learning environments where collaborative learning is fostered.