and Communication Technologies on local/regional socio-economic development, with nine local/regional “antennas”. The concept of this virtual structure is quite innovative, since it correlates local economic growth with the use of Information and Communication Technologies (ICT) in order to conclude on the tangible and intangible benefits brought by ICT at macro and micro level for SMEs. The ultimate goal is to increase the awareness of SMEs and policy- and decision-makers of the socio-economic benefits stemming from the Information Society and to offer specific ICT tools that will help SMEs better understand and utilise those benefits. Expected Results: The main results of EMBRACE II will be: - Expansion of the established EMBRACE network to new areas and countries, particularly by creating eight new nodes in EU Member States, Accession Countries and Non-EU Member States, as well as enhancement of the network with new online services; - Design, development and operation of the Pilot Observatory that will identify and quantify the impacts of ICT on local and regional socio-economic development for SMEs; - Establishment of cooperation among organisations involved in the development and operation of the new nodes of the EMBRACE Network, as well as the Pilot Observatory, - Formulation of more focused policy proposals and recommendations regarding the information and knowledge society on the grounds of the data provided by the Pilot Observatory.