FIRST MOTION (FM) aims at improving the business environment susceptible for innovation and to overcome the weakness of insufficient use of innovation potential and low intensity of joint efforts in the BSR. Building upon the strengths of the BSR, the innovative potential of Baltic SMES in creative industries, IT and culture FM takes advantage on exiting opportunities, makes use of the vast innovation potential of the E-BSR and the formation processes of new competitive cluster in creative industries to define new innovative approaches in the AV media industry for the BSR to become a recognized player in the emerging markets of digital media. “Creative industries”, are an industry with over-proportional growth and high economic potential, which is right now subject to massive changes. Marked by a high concentration of SMEs (Small and Medium sized enterprises) the industry actors are in many cases unable to build up and expand necessary innovation due to their size and fragmented and small domestic markets. FM combines the four relevant domains INDUSTRY CAPACITY BUILDING/MARKET DEVELOPMENT (WP3); INSTITUTIONAL CAPACITY BUILDIND/POLICY DEVELOPMENT (WP4); CLUSTER/REGIONAL DEVELOPMENT (WP5); EDUCATION AND TRAINING (WP6) in one holistic project in order to start effective developments in the concerned areas. The project is structured as a Triple-Helix (University, Industry, and Government) to ensure solutions of high practical relevance and their implementation. The close bond of the industry to all work packages ensures hands-on solutions to relevant problems and their efficient dissemination. WP3 collects expertise about the emerging markets, develops new cross-media formats, efficient business models, and models for sustainable support/subsidies accordingly. This will be done by SMEs and their institutions (government bodies) in order to build up key innovative areas, relevant knowledge and necessary structures in a hands-on approach. WP4 incorporates new knowledge into the institutions and develops appropriate policies for regional development of the creative sector, further supported by the initiation of a BSR AV industry advisory board. WP5 researches current cluster-structures, cross-sector and transnational cooperations and develops models comprising the necessary changes, implements and tests them on regional level within the project, sustained by the initiation of a BSR AV cluster. WP6 develops an international Master-curriculum for the offspring of the convergent (av-)media industries and starting off an annual Summer Academy offering professional training. One of the main FM outputs is a PAN-BALTIC ONLINE PLATFORM as market- and communication-space for b2b and b2c applications. It is maintained as a non-profit entity lessening the East-West divide and facilitating co-operations and knowledge transfer between actors in creative industries. During the project it will already be used and thereby get established and tested itself. Achievements: Historically relevant BSR content was digitized, restored and made publicly available through the market and communication platform “Baltic Universe” (BU) www.balticuniverse.com, which was launched in its Beta Version in February 2011. The platform addresses film producers, film students, festivals and film lovers from the BSR and has been further developed and does now include a more functional video player, a budget planning tool, an address register and the interactive version of the IPR-Guide. An additional transnational structure has been built: the Baltic Universe EEIG (European Economic Interest Grouping) run by 5 FM partners and 2 associated partners from the FM-Partnership to secure the activity of BU in the upcoming five years minimum. BU is not only designed for end users in the BU but also for the av-industry, filmmakers and students from the BSR. 16 innovative content forms were supported, successfully developed and presented at Berlinale 2011 and 2012. A handbook »Cluster Landscapes« (which had more than 1000 views by the end of the project) and a website to go with (www.clusterlandscapes.com), which offers recommendations and individually approachable and usable information for establishing the right foundation for your audiovisual cluster have been published. »Cluster Landscapes« is a hands-on tool for cluster managers and cluster-related companies at the level of small business parks. It is based on First Motion’s »Report on business models, value chains and business development services in the audiovisual/creative industries«. Seeking to explore new markets and value chains the report includes both research on the relevant parts of the audiovisual value chain (education, networks, TV and funding) and tendencies in the development of new practice related to business models. The report ‘Business Models and Value Chains in Audiovisual Media’ shed some light on the topic from the overall angle of the Baltic States. The Guide on intellectual property rights (IPR) for producers das been realized – an online version available on BU has been realized as an on-top feature. The ‘Crossmedia Production MA programme’ is developed and started as part of the Baltic Film and Media School teaching courses in autumn 2011. A similar study programme on the BA level has started in fall 2012. The book ‘Crossmedia Innovations’ by FM partner Indrek Ibrus has been published in December 2012. The Passion Inc. Workshops developed by PPs 5/11 were a big success and will be partly repeated and adopted by PP5 associated partner Shareplay. The workshop created profound knowledge about Crossmedia Production in Central and North Jutland.