The project’s goal is to contribute in the growing of capacity bulding in HE institutions in the BA, by development of partnerships between university- enterprises/SMEs with the principles on EUs modernization agenda and national priorities through sustainable long term partnerships by VirtualEngineering technologies. First part of this project will be establishment of Collaboration Focal Points (CFP) at five BA universities (CFP Banja Luka, CFP Tuzla, CFP Doboj, CFP E. Sarajevo, CFP Mostar).The main aim of CFPs will be adaptation of VE technologies for new product and process development in the area of production enterprises/SMEs in BA, to prepare base of knowledge for each area of VE technologies as CAD/CAM/CAPP, detailed design, FE simulation, Rapid Prototyping, Solid modeling, and other advanced technologies on that way to arouse engineers and students awareness for their application through trainings, consulting and practical research. Specific project objectives will be modernization programmes of vocational trainings, industrial fellowships and consulting tools in higher education for SMEs: maintaining trainings/services; qualify, specialize and certify the trainers; develop and deliver the vocational trainings for industry, engineering fellowships and associations, students and unemployed graduates; develop and implement engineering fellowship programme (IFP) for graduates engineers by lifelong learning (LLL); create case-studies by benchmarking best practise; set-up of SME clustering initiate. The project development will be carried out by mentorship of the University of Stuttgart according to modern EU-standards.