The Baltic Training Programme (BTP) focuses on Priority 2 (Economically competitive and innovative region) and envisages: 1. Supporting labour force mobility to avoid eventual manpower shortage in production and services; 2. Improving attractiveness of vocational training; 3. Boosting cross-border cooperation and entrepreneurship across the region; 4. Initiating development of joint vocational curricula. BTP addresses each challenge in the following way: 1. Regional economic situation and labour market fluctuations call for increased labour force mobility. The desired mobility is hindered by the fact that the existing vocational training systems traditionally supply the local market only. Another hinder is lack of tradition of working abroad among vocational graduates. BTP provides international knowledge, experiences and contacts for participants and companies (through individual project-based attachments) as well as vocational schools (through international components in curricula). 2. In the countries the status of vocational training is relatively low. However, regional forecasts prompt an increased need of skilled workers and other vocational groups. BTP lifts up the status of vocational training by improving its contents and forms through including international knowledge components and cross-border practical attachments for students. 3. Despite the common regional market, cross-border entrepreneurship and SME-interaction lag behind. BTP addresses the challenge by matching participants with companies in partner countries using their individual projects as a motivator of bilateral business development. Participation in BTP is likely to lead to cooperation between companies and to international employments for individuals. 4. The other stakeholder is vocational schools. Through assisting the schools in internationalising their curricula by disseminating best practice, BTP increases their regional competitiveness and ability to meet needs of the common market. The project is broken down into three work packages (WP). The first one being management and information activities. The second one a testing model for cross-border vocational training and entrepreneurship. The third one elaboration of solutions supporting internationalisation of vocational education and training (further on VET) as well as cross-border entrepreneurship and business development. The three follows the logical division of the project activities; managerial and analytical, practical and discursive. By creating prerequisites for free mobility of skilled people, innovative methods of job creation and cooperation around VET, BTP optimizes the potential of the labour market. Furthermore, by improving the quality and status of vocational training, enriched possibilities of workplace-learning, and developing multicultural awareness of the region’s population, BTP improves outputs and effectiveness of the regional economy.