SmartProducts develops the scientific and technological basis for building "smart products" with embedded "proactive knowledge". Smart products help customers, designers and workers to deal with the ever increasing complexity and variety of modern products. Smart products leverage "proactive knowledge" to communicate and co-operate with humans, other products and the environment. Proactive knowledge encompasses knowledge about the product itself (features, functions, dependencies, usage, etc.), its environment (physical context, other smart products) and its users (preferences, abilities, intentions, etc.). In addition, proactive knowledge comprises executable workflows and knowledge about interaction, enabling the smart product to proactively engage in multimodal dialogues with the user. Thereby, smart products "talk", "guide", and "assist" designers, workers and consumers dealing with them. Some proactive knowledge will be co-constructed with the product, while other parts are gathered during the product lifecycle using embedded sensing and communication capabilities. The outcome of SmartProducts will impact the manufacturing and consumer domain, primarily targeting consumer goods, automotive and aerospace industries.