||The project proposal “Internationalization of Forestry SMEs in the Republic of Komi by improving the Value Chain of the sector (Short name: Komi Forestry SME development) ” can be seen as continuation of the pre-feasibility study project implemented in 2007 to develop the cooperation between Komi Republic and Finland in the fields of forestry and timber upgrading. The proposed project would deepen and further develop the initial cooperation and implement the project proposals expressed by the stakeholders involved in the pre-feasibility study project. The project proposal is based on the model that was presented by the Finnish project working group members in Syktyvkar in November 2007, and it has been further developed based on the discussions, initiatives and needs expressed by the Komi partners. The Republic of Komi is interested in exchanging knowledge with Finland in conducting expert examinations and applying modern technologies. The proposed project will concentrate on those issues and topics that have been indicated as significant in the performed interest and constituent group analysis in 2007. The project will seek for solutions of industrial production of wooden houses in Komi Republic, business opportunities for Finnish and Komi small and medium sized enterprises (SMEs) in forestry and timber upgrading sector and develop technology transfer of the field. The project will also seek for housing solutions to meet the demands of the Russian federal and Komi regional programs on housing. As an example, Russian federal program “dwelling” during the years 2002-2010 and its´ sub-programs implemented in Komi Republic are aiming at e.g. securing the development of housing sphere and ensuring the accessibility of dwelling for the citizens. The program and the sub-programs aim to increase housing production especially in low and middle price groups.