Abstract
Knowledge transfer and innovation cooperation between the EU and its neighbours has remained weakly developed. To promote this cooperation, the EU has set up initiatives for the European neighbourhood. The issue has, however, received very limited scholarly attention in the field of tourism. This research gap is addressed here via interview data collected from participants in tourism related EU-funded projects in the Finnish-Russian cross-border region. These underline the importance of EU-funding in facilitating knowledge transfer and innovation between Finland and Russia. While language issues, and differences in business culture and administrative/legislative systems between the two countries, constitute barriers for practical cross-border cooperation, it is cross-border differences in culture and technological capabilities that drive cross-border knowledge transfer and innovation in the cross-border region. The paper concludes with policy recommendations for promoting future cross-border cooperation in innovation and tourism.