The industrial informatics and embedded systems sectors present leading edge technology sectors that provide a competitive advantage for Europe. The SEE area is mostly characterized by developing low-wage based economies that will face a need for change in the near future. In order for these economies to be competitive in the globalised economy, focus should be placed on their transformation to knowledge-based innovation-driven economies. I3E addresses this problem through the creation of a transnational partnership comprising 12 partners from 8 different countries. The project will develop a Strategic Research Agenda in the aforementioned technological sectors that will make it possible to align research efforts in the area so that a significant critical mass is created. This SRA will be a result of a wide consensus building among the different stakeholders in the area, comprising academia, industry, the public sector, facilitators of innovation, such as clusters, technology platforms, existing networks of excellence as well as private financing mechanisms, developed through a wide transnational network in the area. It will thus be in line with the local / regional / national strategies in the area while synergies will be sought to similar initiatives at a European level. Nevertheless, research is not sufficient in an area; it should be transformed to innovation in order to give back to the community advanced products and services that will help increase competitiveness. I3E will create a methodological guideline on innovation showcasing how this transformation is possible utilizing international best practices for this purpose. The main project outputs SRA and MGI will be widely disseminated towards the enterprise world and the general public, while capacity building activities will be also undertaken towards the entrepreneurial world. The active involvement of policy makers will result in the influence of regional strategies in the area. Achievements: • Methodology guide on innovation in the industrial informatics and embedded systems sector in Southeast Europe• National Profiles for a Strategic Research Agenda• Strategic Research Agenda For more information see:http://www.southeast-europe.net/en/projects/approved_projects/?id=87