BALTIC DYNAMICS INITIATIVE is proposed to increase the co-operation among innovative SMEs in EU and pre-accession countries. For this purpose several hundred technologies oriented SMEs from the Baltic States will be audited in order to identify their technology and research needs. Partner search in EU and CEEC countries will be carried out for selected firms and face-to-face contacts on the final stage - the Brokerage event - will be established. Through the "Baltic Dynamics Help Desk", website and other awareness rising means the companies will be encouraged to participate in the EC RTD activities, CRAFT and other projects. In parallel to the Brokerage event the conference/workshop will bring together representatives from EU and CEEC NCPs, Governmental bodies, Science/Technology parks, Innovation centres and IRCs to discuss the issues and problems of establishing innovation friendly environment in the Baltic region.