In RoC and B&H proportion of innovative SMEs in metal and plastic sector is low and the majority is technologically weak, resulting in low added value production and export intensity. Business support institutions (BSI) provide general, insufficiently developed and low value added programs not responding to the needs of entrepreneurs, CNC machinery that is essential for metal and plastic processing is expensive and not accessible for SMEs or training institutions, consequently there is a lack of qualified CNC operators, cooperation with R&D and CB knowledge network or similar clustering activities are not present and not developed. The main objective is to enhance institutional support and services offered to SMEs in metal and plastic sector in Šibensko-Kninska County in the Republic of Croatia and in Zapadno Hercegovačka County in Bosnia and Herzegovina. With this aimb the project supports the BSI directly in order to support the SMEs indirectly. The outputs are the CB Metal and plastic sector knowledge network, improved institutional business infrastructure in Šibenik and Posušje, n. 2 TecParks equipped with necessary technology for metal and plastic processing, trained personnel with competences to deliver higher quality services (technical support in CNC machinery) and developed training Programs for the benefit of the target groups that are: SME, training institutions, universities and research institutions, regional and local public authorities, other Business support organizations and the general public. The border is the natural radius of action of SMEs of the involved territories and only in the CB dimension resources and competences can amass, providing the threshold of knowledge, stakeholders and services that can provide competitive advantages on national and international level, supporting the spread of innovation in the effort of developing the business environment and supporting competitiveness of SMEs.