Danube-INCO.NET understands itself as strategic high-level coordination and support action. Its background is the macro-regional approach of the European Union, in particular the EU Strategy for the Danube Region (EUSDR) and its Priority Areas for Knowledge Society (PA7) and for Competitiveness (PA8). Based on strong institutionaliszed links with the PA Coordinators and the PA Steering Groups, a consortium of 19 partners from all over the region proposes to support the policy dialogue within the EUSDR, to exchange with other regional policy initiatives and to enhance bi-regional dialogue with a focus on the implementation of the 'Innovation Union' and the ERA Framework. Danube-INCO.NET has selected the societal challenges of energy efficiency and renewable energy in a bio-based economy which are addressed by mapping and analysis, clustering and networking and the implementation of concrete pilot activities. Moreover also the societal challenge of innovative and inclusive societies in the Danube region is addressed through the provision of analytical evidence: Research and innovation activities are monitored with several instruments, a survey identifies barriers to cooperation and less competitive innovation systems are reflected through policy mix reviews. To implement concrete innovation support measures, smart specialiszation strategies, technology transfer centeres and a system of supporting the development of targeted project proposals is being introduced. Danube-INCO.NET is also committed towards the development of joint funding mechanisms - lending its attention to one of the most important milestones, the establishment of the Danube Region Research and Innovation Fund. In this respect, Danube-INCO.NET supports the cooperation among the leading - indeed world-class - innovative regions upstream to the regions downstream both at strategic and operative level.