When asked what kind of significance LUT University and LAB University of Applied Sciences have for the regional attractiveness of South Karelia, the Mayor of Lappeenranta, Tuomo Sallinen has a simple answer.
“It’s enormous. The higher education institutions create a foundation for the growth of the entire region. In principle, all university cities are growing. Thanks to the universities, the population of Lappeenranta is growing despite the geopolitical situation.”
The pull is also visible in the business world. Within a short period of time, Several companies have recently announced plans to invest in the area, largely thanks to the region’s higher education institutions. LUT and LAB have a concrete role in the investments, as two of the investing companies, Danfoss Editron and Solar Foods, have a LUT background.
“All the key companies we are negotiating with have developed an interest in the region because of LUT and LAB. They bring strong expertise to South Karelia and educate tomorrow’s experts for companies. It creates hope for the future,” says Tuomo Sallinen, the mayor of Lappeenranta.
The CEO of Solar Foods Pasi Vainikka has been selected as LUT's Alumnus of the Year in 2024. Solar Foods uses microbes and electricity to produce Solein, a protein “out of thin air”. Before founding Solar Foods, Vainikka was involved in the research collaboration of the Soletair pilot plant, which is based on Power-to-X technology.
The founder of Danfoss Editron is LUT University alumnus Kimmo Rauma. Danfoss acquired the clean tech company Visedo founded in Rauma in 2017 and its name was changed to Danfoss Editron. Today, Rauma is active in Lappeenranta on the board of LUT and as the chairman of the board of the P2X company Soletair Power, for example.
Effective cooperation between the universities and the region encourages companies
LUT's Chief Growth Officer Petri Ajo says that the university's cooperation and dialogue with regional actors is active. The university often participates in location discussions with the private sector.
“We introduce companies to what kind of development and growth opportunities we offer together with the region. LUT also has strong expertise concerning the EU and the ability to utilise financial instruments related to the green transition, for example. Our success rate in green transition project funding is the highest in Finland.”
According to Ajo, the close cooperation between the universities and the region is a strong encouraging signal that increases the credibility of all parties. Lappeenranta is gradually growing into a high technology hub.
“If a moment ago South Karelia and Lappeenranta were pitied, the narrative has now changed. The region is very interesting for a reason.”
The buzz in the region is so strong that it is said to have snowballed, fueling even the downright sensational league season of the ice hockey team SaiPa. The positive feeling has spread to the whole city of Lappeenranta.
Regional cooperation is also important for the development of LUT and LAB. Ajo points out that the university develops solutions for the benefit of all humanity and the planet, but to scale them, commercialization is required.
“Both LUT and LAB have a good brand. Companies see us credible and eager to experiment at the same time, and students see us as a secure path to working life. LUT has become an international top university, and our number of applicants and students has grown significantly in recent years.”
A positive spiral bodes well for the future
However, the story of South Karelia is still in its infancy. LUT and LAB are especially strong in green and energy transition solutions. It creates enormous potential for the area, which both Petri Ajo and Tuomo Sallinen recognise.
“In the future, Finland's success will be based even more on expertise. Because of universities, Lappeenranta has strong education and expertise, both of which have effectively transferred to the business sector,” Sallinen says.
Petri Ajo points out that green transition solutions are reaching a stage where words are turning into actions. South Karelia could take advantage of this momentum with LUT and LAB serving as pioneers.
“There's really no magic here. World-class science is already being done in Lappeenranta. Together with the region, we can offer all possible support and promote things in an agile way so that companies can locate in the area.”
Gradually, this creates a positive spiral. Universities attract young experts to the area, to whom companies offer internships and jobs. As a result, experts do not have to leave to find work after graduation, which promotes regional development even further.
“Many students would like to stay here after their studies. That is something we are trying to promote currently,” says Tuomo Sallinen.
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Companies with a background in LUT or LAB
- Dozens of companies have seen daylight in LUT, most of which have been relocated in the Helsinki metropolitan area.
- LUT has also grown the industry in the Lappeenranta region.
- LUT-based companies operating in Lappeenranta include:
- Danfoss Editron (formerly Visedo)
- The Switch (BEMAC and Mitsui Co.)
- Visma Solutions Oy
- SpinDrive Ltd
- You can read more about LAB's business cooperation.
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