Achievements: In Pskov and Tartu region the growing problem for companies in metal and machinery industries in the context of rising labour costs is their low position in subcontracting chain in production process. As a result the companies are not able to take on production with higher added value which would be more productive and benefittable. One of the previously identified reason for that in both partner regions is the low use of product development in the sector and the lack of competence in the field. Within the frameworks of the current project product development current status analysis in Pskov region will be carried out. The analysis will seek to find out the level of use of product development in production processes, the most common methodologies, bottlenecks in the sector's companies. Using the results of this study a product development study program will be developed and printed. The study program is adaptable to both regions and will be used in partner universities in teaching process and in training the entrepreneurs. Exchange of experience between the universities and knowledge transfer is also one important activity in the project - one 1-day seminar will be held in Tartu and one 1-day and one 2-day seminar will be held in Pskov. Also the steering group meetings will be one aspect of cooperation and exchange of experience. To introduce the best practices in both regions best practice tours will be organized to metal and machinery sector companies in both regions for project partners, regional stakeholders and entrepreneurs. This knowledge transfer and cross-border cooperation will create a strong foundation for cooperation in the future especially in the product development field. As a result of the project the study in Pskov region will give a clear picture of the current status and use of product development in region's metal and machinery industries. The developed study program will improve greatly the possibilities of good competence building in the field in partner regions. A 2-day training seminar in Pskov held by the professors from Estonian University of Life Sciences will be the basis and the start of knowledge transfer between the two universities. Also there will be good connections between target groups (companies in metal and machinery sector in Pskov and Tartu regions, the students and lectors in the field of Pskov State Polytechnic Institute and Estonian University of Life Sciences), the regional stakeholders in Pskov and Tartu) in the region which is a good basis for future cooperation. Possible follow-up project could base on the current project - the possible ideas could be to further develop the study program and use it in organizing widespread trainings for trainers, entrepreneurs with and without engineering backround.