The mechanical timber industry is a vital source of employment across the Northern Periphery and is characterised by small and medium sized enterprises. The greatest hindrance to the success of these small and family enterprises in the NPP region is the lack of co-operation, networking, and marketing know-how, and particularly in Sweden and Scotland, the lack of technology expertise. In addition to this, the problems relating to the dispersion of innovations generated, as well as the quality and price of the raw materials and pre-form production relating to the innovations are a hindrance to the development and internationalisation of the mechanical timber industry. The Bitwon innovation network will investigate, develop and commercialise heat-treated, oil-treated and pressed timber products from the NPP area that can be utilised by the DIY and construction markets in the EU region. These products will be developed and modified using innovative ideas exchanged by SMEs from the programme area. This process will follow the principles of sustainable development, thereby creating more environmentally friendly products than many of those currently on offer. These products will be suitable for the needs of dwelling, interior decorating and construction. Expected Results: • Local timber alternative innovation networks• Commercialisation systems of pilot networks• Sales promoting systems for pilot networks• Service tool packages for pilot networks• Through the analysis carried out and closer co-operation between business, the dissemination of commercially important innovations will be made more rapid. This will improve the opportunities to attract higher quality students to an economically important industrial field.