Project CapaCon »Strengthening Research and Innovation Capacity on Energy Conversion and Management in Slovenia and Austria«, addresses the possibility of strengthening the cross-border competitiveness, research and innovation in the crossborder area of Slovenia and Austria. Activities tackle weaknesses identified in SWOT SI-AT on R&I; Heterogeneous levels of R&D and innovation intensity, R&D is concentrated in regional centres not reaching to periphery, R&D and innovation is supported in large enterprises and SMEs are lagging behind, Lack of industry and science cooperation, Low knowledge on SMEs scientific &technological skills