Armenia, Georgia, Belarus and Kazakhstan are currently facing economical difficulties as consequences of economic policy, recent international financial crisis, collapse of world oil/gas prices and economcal slow down in China and other emerging countries. The situation causes an urgent need to implement structural economic reform to transform traditional economy to diversified, knowledge-based and innovation-driven economy. However, present higher education in these countries does not have a strong link to innovation and entrepreneurship. It has failed to become the drivning force to create new innovative enterprises which lead to new jobs and economic growth.This project aims to enhance innovation competences and entrepreneurial skills in engineering education through university-business cooperation in order to support creation of new enterprises, new jobs and economic growth in the partner countries.The specific objectives of the project are to:- foster an innovation culture among partner university staff and students- establish 8 innovation centers at partner countries- provide training to 104 partner country staff on innovation and entrepreneurship - introduce innovation pedagogy in teaching and learning- define transversal innovation competences and develop tools to assess such competences- introduce new courses on innovation and entrepreneurship to engineering students- promote university-business cooperation- provide business incubator and start-up accelerator services to staff and students to develop successful businesses- organize an innovation competition to promote entrepreneurship- disseminate project results to other universities in the partner countries- help partner countriey to develop a national innovation strategyThe project is coordinated by Royal Institute of Technology (KTH) in Sweden, with 2 more EU universities, 8 partner country universities, 4 education ministries as well as 1 NGO and 3 small private enterprises.