To remain competitive in the Baltic Sea Region (BSR), small and medium-sized enterprises (SMEs) must increase their innovation capacity and close the gap between qualification requirements and demands. Human capital is the most important resource for increasing productivity and innovation. As a result, the "Knowledge Alliance for Human Resources and Organizational Development" project was launched and ran from 2017 to 2021. The project of eleven partners from four countries placed a high value on increased collaboration between universities and businesses in order to promote education and innovation. The most important findings are included in this publication. First, through R&D; work at universities, SME-specific methods, instruments, and projects are developed, tested, and implemented, resulting