The operation NPD-NET: Innovation and new product development based on inter-regional networks aims to make regions more innovative and competitive by helping small- and medium-sized enterprises (SMEs) to develop new products or redesign existing ones. According to the regions partnering in this project, small companies often lack internal capacities and resources for such product innovation. To address this gap NPD-NET aims to develop and test network-based innovation and New Product Development (NPD) in the participating regions. Objectives NPD is a business and engineering term, which describes the complete process of bringing a new product to market. NPD covers a wide range of expertise from consultancy services - product engineering, marketing analysis, competition analysis, marketing etc. - to product design and prototyping. It helps companies to redesign products that have become obsolete or have lost their competitive edge and develop new products. The partnership also aims to provide a support tool in the form of a digital stepwise guide (NPD roadmap) for product innovation and wants to create an institutional environment in their regions that helps companies create new products. Results The operation improves the capacity of SMEs in the participating regions to engage in innovation processes with regard to their product development. It also improves the external environment in which these companies operate by raising awareness and capacity among regional institutions, stimulating network building and offering support tools. Activities include pilot projects focusing on the creation of business clusters, setting up new industrial design support centres, and promoting learning networks among businesses and the academia. Activities further include studies, the training of service providers and company mentoring schemes transferring the results obtained in specific companies and technology centres to the entire regional productive fabric. Thus, new product development will not be sealed into a small number of firms, but diffused to the entire Region, with positive impact on SME competitiveness and employment.