Ageing population, safeguarding a healthy workforce, and an emerging demand for quality and highly professional health services have boosted the significance of the health sector. The health sector absorbs large amounts of labour, commodities and research and thus creates incomes, which in turn flow back into the economic cycle of locations, regions and the overall economy. Within regions, health sector spending ranges from 5.5% to over 11% of regional GDP. This is a significant level of economic activity. But it is not optimized to positively contribute to regional development agendas. SMEs are the main origins of innovation in the health sector, and are catalysts of growth and competitiveness. As such their needs must be considered when drawing up successful EU and regional policies for health and industry. This is the competence of regional/local public authorities providing health services and developing the sector in their regions.Aware of this responsibility and in need ofworkable, innovative solutions in this field, Municipality of Debrecen launched this initiative and joined forces with regions setting the OVERALL OBJECTIVE to improve the effectiveness of regional development policies regarding the operational environment of local/regional economic players within the health sector and promote their cooperation in order to exploit the growth and innovation potential of the sector.They have jointly identified the most challenging barriers of SMEs’ development in their regions, and will work along the following SUB-OBJECTIVES to:1. Explore and develop new models to improve the cooperation infrastructure between all players of the health sector, and find solutions for regulatory problems hindering commercialisation of new technologies.2. Explore options to ease the access of SMEs to finance and the design of innovative, sector-specific financial schemes.3. Explore the options to improve management skills of SMEs and transfer know-how on availabletraining programmes.Objectives will be accomplished by an integrated approach, with the involvement of relevant stakeholders and capitalizing on partners’ experiences and know how, exploiting complementarities in the best possible way. Project ACTIONS and their OUTPUTS (State of Play Reports, Collection of Good Practices, Thematic Workshops, Master Class, Comprehensive Implementation Plans, policy recommendations) will directly contribute to the achievement of these objectives. The project will increase the pace of innovation in regional policy in all involved regions, create better and more standardized solutions which can be implemented in other European locations.The PARTNERSHIP includes 11 partners, representing 4 old and 4 new Member States. Partners are local and regional authorities, public bodies and knowledge institutes with experience in health sector development plans and policies and with capacity to ensure direct continuity of the project results. Achievements: Municipality of Debrecen (LP) and its project partners have initiated Health4Growth with the aim to work together effectively to improve the effectiveness of regional development policies regarding the operational environment of local/regional economic players within the health sector and promote their cooperation in order to exploit the growth and innovation potential of the sector. The project brings together 11 European partners: local and regional authorities, public bodies and knowledge institutes with experience in health sector development plans and policies and with capacity to ensure direct continuity of the project results. Preparation activities have been carried out as planned, reaching the set objectives: the LP has coordinated the preparation of the project, assisted by external expertise. After the two preparatory partner meetings organised in Hungary in March 2012, the project was submitted duly. As the very first step of the project's implementation, the internal management system, the Project Management Team (PMT) has been set up consisting of Project Manager, Project Coordinator, Communication manager, Financial Manager and Project Assistant. Project Manager (PM) initiates regular contacts via mail, phone & Skype/other online meeting tool with Project Management Team members for smooth daily implementation. The partners met for the first time at an internal Kick-off meeting on 9-10 May, 2012 in Debrecen, where transnational structures, procedures & upcoming tasks were discussed and agreed on. Together with the internal Kick-off Event the partnership held the Expert Teams’ Kick off as well. The LP has started to implement the start up activities in CP2 and CP3: has been in contact with the CP responsibles and the Expert Teams’ Leaders; started to carry out the necessary procurement procedures needed for professional activities. At the end of the period LP has set up regular contact and a feedback system with all partners and has started to prepare the 1st formal Steering Group meeting of the project (will be held on 10 July, 2012 in Debrecen). By this time the basis of project website (www.health4growth.eu) was created, and the first version of project logo was presented.