Knowledge and innovation are the key factors for sustainable business development. Therefore, new models of cooperation have to be launched that intensify the knowledge flow between business and academia. The Innovation Incubator at Leuphana University of Lüneburg in Germany is an excellent example for such a strategic partnership between university and regional economy. This approach of knowledge transfer is funded by the European Regional Development Fund (ERDF) and focusses on strengthening the competitiveness of regional SMEs. As part of the Innovation Incubator the network for innovation and transfer “Performance Management in Medium-Sized Businesses” represents a concrete example of effective long-term cooperation between academia and business. This alliance aims at the constructive exchange of experience and knowledge between regional SMEs and academic experts in human resources and business development. One of the central questions for regional SMEs within this network is how to attract and recruit highly qualified employees. Within research-based working groups academic experts closely cooperate with business representatives in order to increase the employer attractiveness of SMEs.