The project aims at developing the system of Tailored Applied Research (TAR) to strengthen the cooperation of colleges and business in the area of applied research and innovations. To adjust to constantly changing market environment Lithuanian business enterprises are to analyze the situation and base their activity on thorough research. This challenge of businesses might be coped by educational sector–colleges which could carry out relevant applied research for business. Following the Law on Higher Education, the key documents of Bologna and Lisbon, Lithuanian colleges state in their missions and objectives the entity of education and science, intensive business integration to meet the regional needs. Recently, the necessity for science and education institutions and business to cooperate is being stressed in order to improve study quality. THE MAIN PROJECT AIM is to develop the System of Tailored Applied Research (TARSI) in colleges to strengthen cooperation links with social partners-companies, to improve the study process in terms of practical training. It is RELATED to the objectives of Leonardo da Vinci programme, as the System developed by the project will allow improving study process by updating and enriching its content with the latest research data relevant to the regions, by improving the research competence both-of the teachers and companies’ representatives. TARGET GROUPS are the region’s business companies, project partners’ academic staff, students. To achieve the aim of the project the activities will be carried out by Utena College as an applying institution with 7 partners from Lithuania, Bulgaria, Italy, Sweden and United Kingdom and every partner will coordinate one of the work packages. The project is divided into 8 work packages: Sharing experience and situation analysis, the training/practical seminar in the business enterprises, development, evaluation and pilot testing of the TARSI, which results will be: implemented innovative form of cooperation between business and education/science-TARSI, good links between business and education/science institutions, implemented an open network of business enterprises for TAR, etc. Publishing, scientific articles will allow dissemination and exploitation of projects' results. To coordinate and to ensure the quality and timely implementation of the Project‘s activities the Project Steering Board will be designed. Target groups of the project will be trained, gained experience, therefore project will have short-term and long-term impact. Namely, by improving TAR, cooperating with businessmen, involving students into research, integrating theory-practice-research, the training of the professionals would create active institution in TARSI, participants of the project to transfer their positive experience to new business companies, thus future business-education cooperation improved. The activities, results and dissemination means will be introduced and transferred to other institutions.