Team innovation is innovation by a team, for the team, organization, or a broader group of stakeholders and is ever more prevalent in the workplace. Consequently, developing students' competence therein is of increasing importance. The development of team innovation competence is, however, not a priority in most education settings. To contribute towards addressing this shortcoming, this study reports on the use of a project-based assessment for learning, requiring team innovation, in an undergraduate accounting course. In particular, this study documents the design of the project, analyses the student teams' innovative outputs, and reports the students' individual reflections on collaboratively creating these outputs. The analysis of the students' outputs and their responses to a survey, suggest that most of the students' experience of the team innovation project was positive and the project enabled them to socially construct their knowledge of accounting and to develop their team innovation competence. This study contributes towards bridging the gap between professional education and practice and provides a basis for instructors to further develop students’ team innovation competence, even in disciplines not typically characterized as being innovative.