In this paper we propose an innovation model for the collaboration between SME and public research institutions in order to enhance knowledge transfer and to foster the creation of a regional innovation network. A third aspect is to enhance a more intense cooperation in the public research sector between institutions and departments. In this paper we discuss the term innovation and describe the following aspects: (1) the general idea of the developed bottom-up innovation model, (2) the organizing framework of the participants in the network and (3) the procedure in the innovation process.