The project was to develop cooperation between the University of Joensuu, the officials and organisations in the region, and industry. Consequently, the conditions for cooperation across the border would be improved. A goal was to assess the possibility and need for establishing a development centre that would support cooperation between the University of Joensuu and industry in St. Petersburg (with a focus also on the Republic of Karelia) in cooperation with the universities in Northwest Russia and East Finland. In addition, the operational concept of the development centre was to be drafted. A goal of the project was also to compare new innovation in Northwest Russia and East Finland and the activities and strategies currently being utilised. The ultimate goal of the project was to establish a foundation for the development centre, which would be based on cooperation between businesses and universities, as defi ned in the Objectives of Internationalisation in the Strategy for Internationalisation of the University of Joensuu. Achievements: The project organised three workshop seminars, which were an important function of it. The first Finnish-Russian specialist workshop organised in Joensuu, addressed the situation of new innovation in Finland and nearby areas in Russia. The specialist seminar in St. Petersburg presented innovative models for cooperation between Finnish and Russian universities and companies. Another seminar in Joensuu was arranged as a so-called Innoshop event, which aimed at strengthening cooperation between Russian and Finnish universities, companies, and the Joensuu Science Park. At the events, relationships were established with the innovation network in Finland and Russia. In addition, networks were created between companies and university faculties both in Finland and in Russia. The project also implemented an interview survey of the needs for R&D and cooperation with Russia. The interviewees included 14 SME companies and 4 business consultation organisations. Based on the information obtained through the survey, seminars and feedback from stakeholders, a feasibility study for establishing the development centre was completed. The study assessed the needs and abilities of industry and the Joensuu region to establish a development centre which would support their cooperation in Northwest Russia, together with the higher education institutions in Northwest Russia and East Finland. The activities, strategies, and cooperation opportunities for creating new innovation in the Joensuu region, St. Petersburg, and Petrozavodsk in 2006 were assessed in the report. According to the study it was irrelevant or unnecessary to establish a development centre in St.Petersburg as the need for common business support services linked to the academic environment was insufficient. Therefore, the project was not responsible for generating an actual operational concept for the development unit. Instead, various alternative models for operations were studied. The feasibility study presented a university-based operational model and its potential partners. In addition, procedures for Russia-related actors in the North Karelia region for improving the company-driven availability of services were proposed within the study. A comparative report was also produced, which addressed the innovation policies and legislative framework issues related to innovation activity.