The software development methodology that emphasizes iterative progress and collaboration is known as Agile. Agile promotes flexibility and adaptability in the development process by breaking projects into smaller, manageable units called sprints. Teams work closely together, allowing for frequent reassessment of the project and continuous feedback from stakeholders. This collaborative approach fosters innovation and responsiveness to change, as developers can adjust to evolving requirements more effectively. Agile methodologies encourage regular communication, iterative improvement, and active stakeholder participation, contributing to more successful project outcomes.