The countries of Central Baltic are strongly positioned when it comes to broadband networks and services for mobile and fixed applications. Exploited in the right way the situation in the Central Baltic area therefore holds great potentials for further development of a strong and vibrant business ICT-community. However, there are significant challenges hampering the market for digital services. A common phenomenon is that companies develop services for a local users although they would find a larger markets elsewhere. This problem holds true in particular for SMEs that due to lacking marketing resources and networks fail to reach other markets. These challenges can be countered by supporting the adaptation of services to local contexts by better integration of users in the product development process. So-called ‘Living Labs’ constitute an instrument for supporting effective innovation through methods, tools and by providing access to users and innovation networks. There is a significant number of Living Labs in the Baltic Sea region. A majority of the Labs focus on digital services distributed through broadband networks. Today, however, the labs work too independently and are not sufficiently used to bridge providers and users across national borders, i.e. focus is on local user and providers. The overall objectives and vision of the project is to make the Baltic Sea region (and eventually all of Europe) a single market for digital, broad band-based services by supporting collaborative innovation based on local competitive advantage hereby also facilitating the access to innovations for users all around the Baltic Sea. On a more concrete level the goal of the project is the putting into place of an operative collaboration network (network of Living Labs) using models and methods that increases the transfer of digital services and open up the markets in-between the different regions involved in the project. In summary. the planned project activities encompass development, testing and launch of a Central Baltic network for exchange of digital services produced by SMEs. The activities are carried out within 3 content WPs supported by co-ordination/management activities as well as dissemination and promotion. WP2 aims at validating the network concept by investigating framework conditions governing collaboration of Living Labs in the area, WP3 at planning the modus operandi of the network as well securing commitment and resources for implementation and WP4 at testing the work processes and business model of the LL-network by making specific services available to companies. The project addresses a challenge common to all of the economies of the Central Baltic area; ensuring good growth environments for new business ideas. The key added value of the project is the unique approach enabling the partners to work effectively towards this challenge in a truly collaborative way building on existing and individual strengths. Achievements: The Ballad project created processes and models to support internationalization of digital services from SMEs in the Central Baltic region. In this way, the Central Baltic region can eventually become a single market for digital, ICT-based solutions. The project started by investigating the Living Labs conditions in the countries. The markets for e-health and e-learning solutions were mapped and analyzed. In the second phase extensive investigation around the SME situation was performed leading to an analysis SME needs for internationalization. These needs were developed to a transfer process model trialed on 11 pilots and supported the creation of a web portal to support the SMEs in their internationalization.