Economic and demographic development in Baltic non-metropolitan regions is increasingly weak compared to the metropolitan regions. In order to gain balanced regional development, it is important to narrow the gap and support economic performance in non-metropolitan regions. BSR InnoReg utilizes the results of VBN InnoReg project (2006–2007) whose main outcome was a common understanding of regional innovation system dynamics and challenges as well as a joint development vision for Baltic non-metropolitan regions. Based on VBN InnoReg results, the capability of the innovation systems to secure availability of skilled work force and support the creation and reform of SMEs are regarded as the main challenges among Baltic non-metropolitan regions. To address these challenges and to operationalize the joint development vision, BSR InnoReg aims at improving innovation governance and enhancing attractive and complementary innovation support environments in Baltic non-metropolitan regions. During the project, long-term competence needs of development organizations in the partner regions are identified, which provides basis for regional development workshops and transnational training on selected key themes such as global networking and financing tools. New innovation support instruments concerning e.g. user-driven innovation, start-up financing and utilization of students in innovation processes will be developed jointly, tested in the partner regions and disseminated as a practical toolkit for the use of Baltic non-metropolitan regions. Furthermore, based on experiences of partners and results of project activities, a Memorandum of Understanding on efficient innovation governance in Baltic nonmetropolitan regions with recommendations and practical information on BSR innovation potential and shared challenges will be produced. The MoU will be signed by the involved decision-makers ensuring commitment of the participating regions to elaborate their innovation policies according to the shared development view. The project improves the capacities of decision-makers and development organizations of the partner regions for identifying future challenges and managing of risks in decision-making as well as for developing coherent innovation support services for SMEs. The project strengthens the role and commitment of the decision-makers of Baltic non-metropolitan regions in fostering the competitiveness of the BSR and increases recognition of the BSR as an attractive and dynamic region in the EU. BSR InnoReg involves 15 non-metropolitan regions from 7 BSR countries. The 19 partner organisations represent key actors supporting innovations: regional and local authorities as well as specialized development organisations, such as technology centres and business development agencies. Project activities are aimed at regional and local decision-makers, development organisations and SMEs in the partner regions.