1) The document discusses development initiatives in South East Europe funded by the Operational Programme SEE 2007-2013, which aims to improve territorial, business, and social integration in the region. 2) It identifies problems in the region like differences between north/south and east/west as well as low innovation capabilities. However, it also lists advantages such as quality R&D infrastructure and low cost employees. 3) The document proposes using living labs to inform strategic decision making in the region and focus on themes from existing action plans. It suggests projects in areas like living labs, design, services innovation, and sustainable hydropower.