Bioeconomy is a topical development area in the Nordic region and in Europe but also globally and is seen as the solution to many societal challenges, such as the shift from dependence on fossil raw materials and climate change caused by emissions of carbon dioxide and other greenhouse gases. To cope with the transition and meet tomorrow’s need for new biomaterials and improved processes and products, industry and research need to be met and establish long-term collaborations with mutual trust. The overall goal is to create a nationally leading and internationally recognised research environment in forest-based bioeconomy with unique strong links to regional test bed environments. The goal of the project is to develop research and test bed environments so that an increased number of SMEs become active in research and innovation projects. The milestones are to develop new and existing test bed environments in collaboration with SMEs, to develop process steps, system design and materials for bio-based products and processes, and that KAU has increased its capacity to research together with the region’s SMEs and towards being a national leading research environment in forest-based bioeconomy. An interim goal is also to increase the number of SMEs active in research activities and projects The research is linked to existing test bed environments in the region and focus on four main activity areas in 1. Recycling of residual flows and new bio-based products By further increasing the efficiency of existing production systems and by developing new products that replace products based on non-renewable raw materials, the project will contribute to the transition to a fossil-free and sustainable society with the help of bio-based innovations from the forest. 2. Bio-based food packaging for sustainable development The region has good opportunities to work with packaging barriers based on renewable raw materials in the test bed environment. Optimal packaging design in changing demography also means that technological development must interact with knowledge of household size, wishes and consumption patterns, which leads to stimulating multidisciplinary research questions. 3. Modelling and system optimisation for forest-based process technology The third research area helps to strengthen the links between research efforts and existing test bed environments so that technology points and The Bioeconomy Region can attract expertise and innovators both within and outside the region. Building mathematical models for processes serves as a complement and further development of physical test bed environments whereby developed and verified models can be used as a tool for optimised process design. 4. Management and governance of innovation work The transition to a sustainable bioeconomy requires increased knowledge of both technological and organizational barriers and opportunities. Building a competence requires both an increased understanding of what constitutes and forms the basis for these challenges and opportunities in the existing networks, and how companies can respond to and manage them. Research is thus a prerequisite for creating a knowledge and understanding required to succeed in a transition to a bioeconomy in the region. The regional business sector will in various ways benefit from the project’s results and thereby gain increased knowledge in sustainable bioeconomy, which strengthens competitiveness. Small and medium-sized companies will as a single party or together with others actively participate in test environments and research projects in order to develop new ideas, products and processes. In the long term, companies will have a cutting-edge competence that will contribute to new business opportunities and increase competitiveness. Karlstad University is expected to become a nationally leading research environment within forest-based bioeconomy, which increases attractiveness and is expected to lead to greater opportunities for companies to recruit strategic expertise and for new establishments.