This chapter provides a detailed assessment of the eastern and southeastern border regions, analysing their demographic trends, economic structures, attractiveness, and key development challenges. It highlights each region’s exposure to the repercussions of Russia’s war of aggression against Ukraine, including disrupted tourism, weakened transport links, loss of cross-border trade, and the need to strengthen security of supply. The chapter also outlines regional priorities for resilience, from green transition initiatives and workforce development to infrastructure investment, renewable energy expansion, and strengthened multilevel governance. Overall, it demonstrates significant regional variation but shared strategic needs for diversification, improved connectivity, and enhanced preparedness.
Transition Strategies for Finland’s Eastern and South‑Eastern Border Regions
Abstract
Regional profile
Lapland (Figure 5.1) stands as one of Finland's premier tourist destinations, with its economy primarily supported by tourism, mining operations (including related services and manufacturing), and forestry. However, the region faces several economic and demographic challenges. Its GDP and R&D expenditure per capita fall below the national average, whilst its population has experienced both ageing and decline over recent decades. The region also lags behind other parts of Finland in educational attainment, median income levels, morbidity rates, and broadband accessibility.
In terms of international connections, Lapland has historically maintained a relatively low dependence on Russian tourism, successfully attracting visitors from other international markets. While regional-level statistics show resilience in tourism, with the ability to compensate for decreased Asian visitors due to closed Russian airspace, the impact varies significantly within the region. Eastern Lapland, in particular, has been more substantially affected by changes in cross-border relations than other parts of the region. The cessation of Russian tourist flows has necessitated the development of new attractions and expansion of existing facilities to attract alternative international visitors. The planned diversification into other sectors, such as mining, has not materialised as anticipated, highlighting ongoing needs for economic support mechanisms.
Note: Lapland (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Bing Maps.
Regional attractiveness
Economic attractiveness
While Lapland enjoys economic prosperity, the slow pace of innovation and challenges in the labour market could hinder sustainable growth. Lapland’s GDP exceeds the EU TL31 median by 16%, partially driven by its productivity that is 9% higher than its European counterparts. However, EU trademark and PCT (Patent Co‑operation Treaty) applications per capita in Lapland are well-below the EU median. Most notably, the region's performance in high-tech patents is particularly concerning, registering 80% below the median of EU. In the labour market, the overall unemployment rate is approximately 1 percentage point above the EU median, while youth unemployment stands out as a critical issue, placing the region among the bottom 10% performers at the EU level as of 2022 (Figure 5.2).
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
The region stands out as a leader in tourism performance. The number of overnight stays in tourist accommodations per capita is particularly strong, reaching 2.4 times the EU average and ranks as the top region within the country. Foreign tourists account for about half of all overnight stays, well-above the EU median and the second highest in the country. The number of tourism information centres per inhabitants also exceeds the EU median. In terms of cultural capital, the density of museums and galleries is above the EU median. However, the ratio of theatres per capita falls short, ranking as the fourth lowest in the country. Entrepreneurship in the cultural sector is strong with a firm creation rate among the top 10% performers at the EU level in 2020.
Land resilience and housing
Lapland presents mixed results in land resilience, while housing is a strong asset when compared to the EU. The share of built-up areas exposed to river flooding is the highest in the country, approximately 5.5 times the EU median. However, the region has experienced no major fires, and soil moisture levels have slightly increased over the last four decades, in contrast to the decline observed at the EU level. In housing, the region does well in terms of affordability, with property prices per sqm nearly 30% lower than the EU average and slower price increases compared to EU trends. Nevertheless, these housing advantages do not reflect availability – where the region is facing issues with much of the existing stock dedicated to overnight visitor stays creating a bottleneck for prospective talent and students seeking local accommodation – and are less pronounced when compared to other regions within Finland.
Residential well-being
The region is strong in social cohesion but struggles with access to education and health services. The number of community centres per inhabitant is well above the EU median, while intentional homicides are non-existent. However, challenges persist in education access, with only 17% of the population able to reach primary education within a 10-minute walk - a figure 50% below the EU median. Similarly, access to kindergartens remains limited compared to both EU and national levels. In the health domain, while air quality and the number of doctors per inhabitants are significantly better than EU counterparts, proximity to key hospital services remains a critical challenge, with the longest distances in the country.
Connectedness
The region presents major challenges in connectivity. The region’s average download speed from fixed devices ranks mid-range nationally, while it records the third-highest level of the Meta Social Connectedness Index within the country. However, this digital connectedness remains significantly lower than EU counterparts. In transportation, the region faces challenges with the lowest road and cycleway density nationally and limited rail access, falling short when compared to EU benchmarks. These infrastructure gaps highlight opportunities for improvement in both digital and physical connectivity.
Natural environment
The region excels in Environment and Natural Capital. Its electricity generation is entirely renewable, placing it among the top-ranked regions at the EU level. In terms of climate impact, the low number of additional cooling degree days positions the region within the top 5% of better performers in the EU. The region also excels in tree cover, showcasing exceptional performance in both stock and growth over time. However, greenhouse gas emissions from the transport sector remain a notable challenge.
Regional development priorities
The Regional Council emphasises Lapland's strategic importance in two key areas: as a repository of valuable natural resources and as a critical logistics corridor through its borders with Sweden and Norway. This cross-border connectivity would be particularly valuable for maintaining supply chains should maritime traffic face disruptions. The region positions itself as a vital platform for Finland's economic growth and green transition, leveraging both its abundant raw materials and its established expertise in resource utilisation, with particular strengths in the forestry and mining sectors.
While Lapland continues to attract significant planned investments (though specific figures remain undisclosed), recent trends show many Finnish investment projects being put on hold. As an attempt to address this challenge, the Regional Council advocates for removing barriers to investment and export growth, specifically calling for streamlined zoning and permit processes. The Council also emphasises the importance of enhancing Finland's self-sufficiency through new mining initiatives.
The Regional Council recognises that supporting green growth requires robust cross-border co‑operation, particularly through developing a comprehensive industrial strategy with Northern Norway and Northern Sweden. This approach reflects the region's commitment to sustainable development through international partnership.
The region's deployment of AKKE funding2 (central government allocation for promoting sustainable regional growth and addressing structural changes) specifically targets projects that:
Enhance Lapland's business environment and self-sufficiency.
Strengthen regional adaptability in response to the new operational environment, particularly regarding international crises.
Support structural changes and promote smart regional adaptation strategies.
Eastern Lapland's tourism sector has experienced particular challenges following the cessation of Russian tourist flows, which historically represented a significant visitor segment. In response, local stakeholders have implemented a comprehensive strategy focused on diversifying and enhancing tourism infrastructure. This includes developing new attractions and expanding existing facilities, such as cycling and downhill skiing venues, to attract both domestic and international visitors.
While tourism adaptation efforts have shown some success, the region requires further strengthening of its broader business ecosystem. The planned diversification into other sectors, such as mining, has not yet materialised as anticipated, highlighting the ongoing need to develop additional economic support mechanisms beyond tourism. This situation underscores the importance of continuing efforts to build a more resilient and diverse regional economy.
Regional policy strategy
Lapland stands as one of Finland's premier tourist destinations, with its economy primarily supported by tourism, mining operations (including related services and manufacturing), and forestry. However, the region faces several economic and demographic challenges. Its GDP and R&D expenditure per capita fall below the national average, while its population has experienced both aging and decline over recent decades. The region also lags behind other parts of Finland in educational attainment, median income levels, morbidity rates, and broadband accessibility.
Strategic planning and adaptation
Lapland's regional development plan and strategic program, drafted prior to Russia's invasion of Ukraine in 2021, did not anticipate potential risks in Russian relations. These documents notably omitted consideration of regional economic impacts from sanctions and counter-sanctions implemented after Russia's 2014 invasion of Crimea. Instead, they positioned Russia as a key cross-border collaboration partner, emphasising development corridors connecting Russia with Nordic countries.
More recent strategic updates reflect evolving circumstances. The Outlook on Lapland 20243 addresses the impact of the changed security environment on transport networks, particularly regarding security of supply – defined by Finland's National Emergency Supply Agency as preparation for potential crises, disruption management, and safeguarding critical functions for society, business, and population safety.
The new draft transport strategy4 emphasises Lapland's strategic position as Finland's only western land border. It notes the region's resilience in tourism, achieving record visitor numbers despite the loss of Russian tourists, though transportation companies have faced increased operational costs.
Compared to other regions, Lapland has been somewhat slower to formally update its strategies to reflect the changed international environment. This measured response likely reflects the region's historically stronger focus on collaboration with Norway and Sweden – its other land border neighbours – rather than suggesting inaction. The Regional Council actively promotes proposals to the national government and addressing concerns about lost EU cross-border collaboration funding, though these efforts are not yet fully reflected in official documentation.
Human capital and labour force development
Ensuring the availability of skilled labour remains a critical priority for Lapland, particularly given that the region's educational attainment levels fall significantly below the national average. Lapland's strategy focuses on ensuring workforce stability through localised solutions whilst maintaining the importance of work-related immigration and streamlined permit procedures. The strategy has evolved to incorporate broader regional initiatives, including improving educational accessibility in remote areas and better integrating international expertise into the local labour market.
Infrastructure and connectivity
Finland's current geopolitical situation highlights the critical importance of Lapland's transport infrastructure, as the country's only land connections to Western Europe run through Northern Sweden and Norway. This positioning makes the maintenance and improvement of Lapland's main roads and railways essential for national security of supply, extending the region's infrastructure significance well beyond its geographical boundaries.
Infrastructure and connectivity enhancement features prominently in Lapland's development agenda, reflecting this strategic importance. A notable example of progress in this area is the New North project (Box 5.1), supported by the Interreg Aurora programme, which demonstrates the region's commitment to strengthening its transport networks.
This initiative facilitates collaboration between four Finnish regions – Lapland, North Karelia, Kainuu and North Ostrobothnia – and partners in Sweden and Norway. The project’s goal is to respond to the evolving geopolitical landscape by strengthening cross-border co‑operation, enhancing northern transport networks, and developing sustainable regional transport systems that anticipate future needs.
The project focuses on four strategic areas of development:
Transport chain optimisation: The project analyses current freight traffic patterns and explores opportunities for more sustainable and efficient transportation solutions. This includes evaluating the region's potential for modal shifts between truck, rail and maritime transport to create more streamlined logistics chains.
Security of supply enhancement: A comprehensive analysis identifies critical infrastructure development requirements and promotes enhanced cross-border co‑operation in transport system planning. This work aims to strengthen and safeguard regional security of supply.
Aviation system development: The initiative examines regional aviation's current and future role within the broader transportation network, with particular emphasis on integrating sustainable aviation technologies into existing and potential flight routes.
Green transport corridor development: This component involves analysing rail traffic flows along the North Karelia to Narvik corridor and assessing existing port infrastructure, with the aim of establishing more environmentally sustainable transport routes.
The New North project is funded by the EU Interreg Aurora programme with a budget of EUR 2 million. The project has started on September 1, 2023 and will continue for 36 months.
Source: Lapin liitto (2024). NEW NORTH – Transport, Logistics and Security of Supply, https://www.lapinliitto.fi/aluesuunnittelu/new-north-transport-logistics-and-security-of-supply/
Lapland's infrastructure priorities reflect a strategic integration of civilian mobility needs and military logistics requirements, responding to the evolving geopolitical landscape. A prime example is the Rovaniemi-Kemijärvi road upgrade project, which secured EUR 1.15 million from the Military Mobility Fund5 to enhance national defence capabilities whilst improving regional connectivity. This dual-purpose approach ensures infrastructure investments serve both national security imperatives and regional development needs.
The region is actively exploring railway network expansion, with discussions focusing on potential new connections linking Sodankylä, Kittilä and Kolari. These proposed developments would strengthen trade routes, enhance tourism accessibility and facilitate cross-border co‑operation whilst supporting strategic transport requirements.
This integration of civil and military transport planning demonstrates Lapland's adaptable strategy in response to changing security and economic contexts. The approach emphasises the vital role of robust regional and international transport networks in supporting both economic development and strategic resilience.
Environmental sustainability
Lapland has prioritised supporting green transition initiatives in response to the significant impacts of global warming and environmental change anticipated in arctic northern regions. The region's strategic documents, particularly the "Green Deal of Lapland"6, outline ambitious goals including achieving carbon neutrality by 2035, transitioning to a circular economy, decoupling economic growth from natural resource consumption, and halting biodiversity loss.
The region demonstrates particular commitment to renewable energy advancement. The Regional Council has commissioned comprehensive studies on wind power capacity7, identifying optimal locations for new wind farms (Box 5.2). This research will be complemented by a forthcoming study on solar power potential8.
Lapland's climate strategy9 contains several key objectives. The region prioritises climate education for both decision-makers and residents, aiming to influence workplace and everyday choices. This includes expanding climate change mitigation and adaptation-related training, advisory services, development programmes and research activities within the region.
A central goal involves achieving enhanced regional self-sufficiency by increasing the processing value of local resources, particularly in food and energy sectors. This strategy emphasises developing finished products within the region rather than solely supplying raw materials to other areas. Additionally, as previously discussed, the region is committed to developing climate-friendly logistics and transport systems.
A recent report by a joint working group of the Ministry of Economic Affairs and Employment and the Ministry of Defence examined ways to expand wind power construction in eastern Finland while maintaining national defence capabilities. Currently, wind power investments are heavily concentrated in western Finland, with only a small fraction located in the eastern regions. While this imbalance stems from multiple factors including wind conditions, environmental aspects, grid capacity, and local acceptance, a significant reason is the restrictions related to Finland's territorial surveillance system and military needs.
The working group's key proposal involved establishing compensation areas where wind power construction would be permitted, with developers paying compensation fees to fund necessary adjustments to defence surveillance systems. The estimated cost for implementing a ground-based surveillance solution would be EUR 190-300 million per compensation area, or EUR 600-900 million for all of eastern Finland. An alternative combining both air and ground-based surveillance would cost EUR 500-800 million, plus annual operating costs of EUR 15-20 million.
However, according to recent reporting by YLE (Finnish Broadcasting Company), this compensation area initiative has now stalled due to a significant funding gap. Wind power companies have indicated they would only be willing to pay between EUR 100 000-200 000 per turbine in compensation fees, while the actual required contribution would need to be around EUR 1 million per turbine to make the scheme viable. With municipalities unable to contribute and companies offering only 10-20% of the required funding, the state would need to cover 80-90% of the costs – a proposition deemed unfeasible by authorities. While no final political decision has been made to permanently abandon the compensation area approach, it has been indicated that the initiative cannot proceed under the current parameters. The matter may be revisited during the next government term, potentially as part of the upcoming energy and climate strategy.
In the meantime, both the original report and current guidance from the ministry suggest focusing on areas in eastern Finland where the Defence Forces have already granted approval for wind power construction. This is considered a more practical near-term solution for advancing renewable energy development in the region. The Finnish Defence Forces have, over the years, given positive statements for 84 projects and 1 111 wind turbines within a 100 km radius of the eastern border, but so far only 108 turbines have been built there.
The situation illustrates the complex challenge of balancing Finland's clean energy ambitions with defence requirements and economic realities. While the technical solutions exist, the financial framework for implementing them remains a significant obstacle to expanding wind power development in eastern Finland.
Some restrictions would remain even if compensation areas were established, including building restrictions within 20-30 km of the national border and around critical defence installations. The working group’s report also notes that alternative renewable energy solutions, particularly solar power, face fewer defence-related challenges and could be developed more quickly in the region.
Source: (Huttunen et al., 2024[1]); Yle News Broadcasting company, https://yle.fi/a/74-20137063
Multi-level governance and capacity-building
Lapland is a member of organisations such as the Conference of Peripheral Maritime Regions and the North Calotte Council, while fostering active co‑operation with other Eastern and Northern Finnish regions. However, it withdrew from the Barents Euro-Arctic Council as of January 1, 2025.The collapse of Barents co‑operation following Russia's withdrawal has necessitated a comprehensive reassessment of regional co‑operation frameworks. Many cross-border initiatives previously dependent on Russian participation have required restructuring. In response, Lapland has strengthened partnerships with Nordic neighbours, particularly Norway and Sweden, whilst increasing engagement with broader Interreg Europe programmes. However, this transition raises concerns about preserving institutional knowledge and co‑operation mechanisms established within the Barents framework.
A notable challenge has emerged from the diminishing capacity of national ministries to co‑ordinate cross‑border initiatives effectively, potentially leading to increased fragmentation without robust alternative frameworks. The region's shift towards new alliances represents both a practical response and an acknowledgement of the complexities in reorganising cross-border efforts.
Specific measures include developing new cross-border networks across European regions and establishing local initiatives such as the "Rajakunnat" project, addressing socio-economic impacts of border closures. The strategic deployment of AKKE and JTF funding supports local projects in Eastern Lapland and tourism infrastructure improvements. However, stakeholders express ongoing concern that without strong replacement structures, historical achievements in regional development and cross-border co‑operation may be compromised.
Regional profile
In terms of economy and demographics, North Ostrobothnia (Figure 5.3) stands as an exceptional case among Finland's border regions. The region has experienced population growth and maintains the highest educational attainment level among border regions. Its per capita R&D figures exceed the national average, and it hosts significant concentrations of various manufacturing sectors, while agriculture and forestry play a relatively minor role as employers compared to other border regions.
Russia's influence on North Ostrobothnia's development has been notably less pronounced than in other Northern and Eastern Finnish regions. The share of Russian tourists has historically been modest, and the proportion of Russian residents remains low compared to other border regions. As a result, North Ostrobothnia has demonstrated notable resilience to the disruptions caused by the war. Nevertheless, the eastern parts of the region have faced greater impacts than suggested by regional averages. The closure of cross-border traffic has impacted logistics operations, particularly affecting transit traffic through the region to western Finland’s ports, such as the Port of Kokkola. The timber industry has experienced disruption due to reduced access to Russian raw materials, with planned investments and energy projects facing delays. The region has successfully pivoted its tourism focus to Central European markets.
Note: North Ostrobothnia (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic attractiveness
North Ostrobothnia is a prominent hub of innovation and entrepreneurship at both the national and European levels. The region’s economy features a GDP comparable to the EU average, alongside a lower degree of economic diversification and higher productivity. In terms of labor market performance, the employment rate is 4 percentage points above the EU average, although the unemployment rate is also comparatively higher. The region's strength lies in its innovative activity, evidenced by trademark applications per capita exceeding the EU median by 32% and PCT patent applications surpassing the EU average by 706% (Figure 5.4). Furthermore, high-tech patent applications per capita are well above the EU median, and second nationally. In the domain of entrepreneurship, North Ostrobothnia ranks second in firm creation at country level.
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
While the region records much less tourism activity than the EU average, it demonstrates high levels of entrepreneurship in the cultural sector. The number of touristic overnight stays, adjusted for population, is 38% below the EU average. The share of overnight stays by foreign visitors is also lower than the EU level. However, this indicator exceeds national measures. In terms of cultural capital, variables such as the number of museums, galleries, and theatres surpass the EU median but remain below the national level. Yet, the region excels in cultural entrepreneurship, ranking among the top 6% of EU regions for firm creation rates in the cultural sector in 2020.
Land resilience and housing
The region performs similarly to the EU in land and housing indicators but lags, nationally. The share of built-up areas exposed to river flooding ranks among the top 10% of EU regions and is the second highest within the country. Conversely, while the share of land burned is low compared to the EU, it remains high nationally. At the same time, soil moisture levels have increased, unlike the EU's overall decline. In terms of housing affordability, prices per sqm are 31% cheaper than the EU median but less than the country level. Additionally, the region has seen a rapid rise in housing prices, with annual increases outpacing the EU’s and placing it among the top three regions in the country.
Residential well-being
The region demonstrates advantages in social cohesion, while mixed results are observed in education and health indicators. The region shows strengths in social cohesion, with more community centres and fewer homicides per capita than the EU median, although it ranks mid-range nationally. In education, challenges persist, including long distances to primary schools and a small share of international students. Notably, the region has the second-lowest number of higher education institutions per capita nationally. In health, the region excels with a high doctor-to-population ratio and low levels of air pollution. However, access to healthcare services remains a concern with distances to hospital services among the highest 10% of the EU.
Connectedness
The region is a strong performer in digitalisation but lags in transport. Notably, download speeds rank fourth nationally, while Meta Social Connectedness Index is in the upper distribution nationally. However, in transport, the region struggles with less performant infrastructure: road density ranks in the bottom 1% of the EU regions and access to rail in the region is limited.
Natural environment
The region excels in natural capital at the national level but is less competitive at the EU level. In terms of the environment, the share of renewable energy in the region is comparable to the EU median, while greenhouse gas emissions from transport are 107% higher than the EU’s. Conversely, cooling degree days have increased at a slower rate than EU peers, while faster than the national level. In Natural Capital, the region ranks third nationally for tree cover rate and the share of protected areas. However, there has been a persistent decline in tree cover area, in contrast to the growth observed at the EU level.
Regional development priorities
The Regional Council's priorities reflect North Ostrobothnia's distinct position and challenges. The region positions itself as a crucial gateway to the west through Sweden and Norway, with ambitions to become a transport hub for northern Finland. It places significant emphasis on developing expertise in digital technologies, particularly in 5G and 6G solutions, ICT, and digital security. The Council prioritises enhancing regional self-sufficiency in energy, raw materials, and food production, while supporting green transition initiatives and sustainable development. Addressing workforce challenges through immigration and educational development remains a key focus area.
The 2024 implementation plan10 acknowledges that aspects of the changing security environment may bring positive impacts to the regional economy. The region's geopolitical importance creates financial opportunities, particularly given its natural resources in mining and quarrying, and its globally recognised expertise in communications technology and digital security.
Finland's NATO membership has elevated the importance of defence and security industries, potentially benefiting companies active in 5G solutions, 6G research, and cybersecurity. The dual-use potential of these technologies is being actively supported to create business opportunities that enhance security of supply and NATO operations.
Regional policy strategy
Strategic planning and adaptation
Unlike some other border regions, North Ostrobothnia's regional development plan11 notably did not mention Russia, reflecting the relatively low importance of eastern relations in regional planning. However, recent assessments have led to increased attention to security issues and security of supply, as reflected in the latest implementation plan drafted in 202412.
The region's vision for 205013 positions North Ostrobothnia as a safe and resilient region. This vision encompasses enhanced self-sufficiency in energy, raw materials, and components, alongside strengthened western transport connections. The development of digital infrastructure and services, coupled with support for green transition initiatives, forms core elements of this strategic outlook.
Human capital and labour force development
Skilled workforce availability remains a critical priority for North Ostrobothnia. In general, the region faces growing challenges as companies increasingly report skilled worker shortages as barriers to growth. The region's approach to addressing these challenges focuses on promoting immigration and international talent attraction, while leveraging regional educational institutes as gateways for international workforce development. Significant emphasis is placed on developing educational partnerships aligned with local industry needs and creating clear pathways for international students to transition into the workforce. The region actively utilises EU funding mechanisms, particularly Interreg Aurora and structural funds, to support these initiatives.
The region has demonstrated adaptability in human capital development, notably through municipalities providing security and livelihood support for people who fled Ukraine.
Infrastructure and connectivity
North Ostrobothnia prioritises infrastructure development as a cornerstone of its regional strategy. The region focuses intensively on developing western transport connections, particularly with Swedish and Norwegian networks, and lobbying to enhancing road and railroad infrastructure, including the strategic Oulu-Haaparanta rail link. Improvements to port infrastructure and air connections, alongside expanding digital connectivity in sparsely populated areas, form key components of the infrastructure strategy.
The altered geopolitical situation has prompted a re-examination of transport system foundations. This encompasses export industry needs, security of supply requirements, military mobility considerations, regional accessibility, and large-scale infrastructure projects. The integration of these elements reflects a comprehensive approach to infrastructure development that serves both economic and strategic objectives.
Environmental sustainability
The region maintains a strong commitment to green transition, as outlined in its 2021 climate roadmap14. Environmental sustainability efforts encompass circular economy development, green energy production expansion, and implementation of low-emission traffic systems. The region has made significant progress in wind energy production through regional planning and zoning, while actively developing its hydrogen economy. Biogas production and nutrient recovery initiatives demonstrate the region's practical approach to sustainable development.
The goal of substituting Russian energy imports with low-carbon domestic energy has accelerated the energy transition. Projects like TUULI and EMMI serve as important foundations for ongoing regional energy and climate planning work (see also Box 5.3 below).
TUULI -project Funded by ERDF (budget EUR 390 000) Goal: Regional analysis to calculate the wind energy production potential of Northern Ostrobothnia and to define and prioritise areas that are best suited (green areas in the map below) for wind power production. 
| EMMI -project Funded by AKKE (budget EUR 100 000) Goal: To map the potential for green hydrogen demand (grey dots in the map below) and production (coloured squares in the map below) in Northern Ostrobothnia. 
|
Source: Based on Pohjois-Pohjanmaan liitto & Sweco (2022), TUULI-hanke: Kestävä tuulivoimarakentaminen Pohjois-Pohjanmaalla, https://www.pohjois-pohjanmaa.fi/wp-content/uploads/2022/09/TUULI-hankkeen-esittely_PPL_Sweco.pdf; Pohjois-Pohjanmaan liitto & Sweco (2023), Uusiutuvan energiatuotannon ja siihen kytkeytyvän vihreän vetytalouden mahdollisuudet ja maankäytön reunaehdot Pohjois-Pohjanmaalla, https://www.pohjois-pohjanmaa.fi/wp-content/uploads/2023/04/EMMI_TP1_Uusiutuva-energiantuotanto-ja-vetytalous_loppuraportti_11042023.pdf.
Multi-level governance and capacity-building
North Ostrobothnia emphasises international networks and collaboration, actively participating in multiple smart specialisation partnerships and EU networks. The region engages in industrial modernisation initiatives, wireless ICT development, advanced materials research, high-tech farming programmes, and mining industry collaborations. This extensive network of partnerships supports the region's development goals across multiple sectors.
The suspension of traditional co‑operation programmes, such as the Karelia CBC, has led to a strategic reorientation towards stronger western partnerships, particularly with Norway and Sweden through initiatives like Interreg Aurora. This shift reflects the region's commitment to maintaining socio-economic co‑operation while adapting to new security priorities.
The regional council emphasises the importance of EU's Cohesion Policy as a key financial instrument for sustainable growth, employment, and skills development. The region also advocates for continued basic funding from the national government and special EU support for sparsely populated northern regions to address permanent structural challenges.
Regional profile
Kainuu (Figure 5.5) faces many of the socio-economic challenges common to Finland's border regions. The region has experienced sustained population decline, whilst its educational attainment levels, median income, and R&D expenditure per capita remain below national averages. Broadband connectivity also lags behind the national standard. The region's economy is characterised by strong primary production sectors, particularly forestry and mining, alongside notable manufacturing activity, exemplified by Skoda's factory in Otamäki village.
The region has historically maintained significant connections with Russia, evidenced by a substantial increase in Russian residents since 2022 and the traditional importance of Russian visitors to the local tourism sector. Prior to 2014, Russians constituted over half of international tourists in the region, though Kainuu maintains the lowest overall share of international tourists among Finland's border regions.
Note: Kainuu (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic attractiveness
Kainuu features a diversified economy but demonstrates low levels of innovative activity and employment (Figure 5.6). The region’s GDP is 4% higher than the EU median, while its productivity is 7% lower than the EU average and the lowest nationally. Conversely, the degree of economic diversification is the highest in the country, standing 15% above the EU median. In terms of innovation and entrepreneurship, the region performs below both the EU and national medians in firm creation rates, and trademark and patent applications. However, it performs well in high-tech patents, with applications per inhabitant 166% above the EU median. Regarding the labour market, the region underperforms both nationally and at the EU level across all the considered indicators.
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
The region is performant in tourism, however attracting foreign visitors and growing the cultural industry remain a challenge. In tourism, Kainuu excels with a high number of overnight stays per inhabitant, ranking third nationally and four times the EU median. The region also leads the country in the ratio of tourism information centres to population. However, the share of overnight stays by foreigners is the third lowest nationally. In cultural capital, Kainuu performs well, with a high number of museums and galleries per inhabitant compared to the EU. Notably, it ranks first nationally in theatres per inhabitant, with almost 5 times the EU median. Despite these strengths, the region faces the lowest rate of firm creation in the cultural sector nationally.
Land resilience and housing
The region excels in housing affordability but shows mixed results in land resilience. The region faces land challenges, with 21% of built-up areas exposed to river flooding, placing it among the highest 10% of EU regions and fourth nationally. However, soil moisture levels show a positive trend over recent decades, standing in contrast to the decline observed across the EU. In housing, the region excels with the third‑lowest price per sqm nationally, at the EU average. Additionally, it benefits from lower increase in housing prices compared to the EU median, further enhancing its affordability and appeal.
Residential well-being
Kainuu exhibits strong performance in social cohesion but faces challenges in education and health accessibility. In social cohesion, Kainuu stands out with a high density of community centres and zero homicide rates, ranking among the best both nationally and in the EU. In education, the region faces challenges with particularly high distances to primary schools and kindergartens. However, it performs well in the number of higher education institutions per capita, but struggles to attract international students. In health, Kainuu benefits from a strong doctor-to-population ratio and low air pollution. Despite these strengths, the region faces challenges in health accessibility, with the second-highest average distance to key hospital services.
Connectedness
Kainuu performs moderately in digitalisation but faces significant challenges in transportation infrastructure. In digitalisation, the region’s average download speed and Meta Social Connectedness Index rank in the mid-range nationally. In transportation, Kainuu faces significant challenges, with low road and cycleway density, both ranking as the second lowest nationally. Additionally, population access to rail remains limited.
Natural environment
Kainuu excels in renewable energy generation but faces challenges in natural capital preservation. The region excels in renewable energy, achieving 100% renewable electricity generation, placing it among the top performers in the EU. However, greenhouse gas emissions from transport remain relatively high. In natural capital, Kainuu boasts a high tree cover rate, 175% above the EU median and the highest nationally. Despite this strength, the region has experienced a significant decline in tree cover area, diverging from the EU trend. Additionally, while the share of protected areas is low compared to the EU average, it ranks as the third highest nationally.
Regional development priorities
The Regional Council emphasises several key development priorities that reflect both traditional strengths and emerging challenges. Before Russia's invasion of Ukraine, the region maintained extensive cross‑border co‑operation, including trade, shopping tourism, and targeted service marketing. This was supported by a dedicated Russia strategy. However, the conflict has necessitated a significant strategic reorientation.
The Council now focuses on leveraging opportunities arising from Finland's NATO membership, particularly in defence-related industries and research activities. There is also an emphasis on strengthening local companies' capabilities to participate in Ukraine's future reconstruction efforts, though specific implementation plans remain under development.
In response to changed circumstances, Kainuu has intensified the development of Kuhmo as a strategic defence training and testing area, involving collaboration between the Finnish Defence Forces, regional municipalities, educational institutions, and private companies15. This initiative aims to promote innovation in dual-use technologies while creating economic opportunities through potential NATO co‑operation.
Regional policy strategy
Strategic planning and adaptation
Kainuu's pre-war strategic planning16 reflected strong ties with Russia, evidenced by dedicated co‑operation strategies and marketing initiatives. However, the conflict prompted a comprehensive reassessment of regional priorities. The latest tourism strategy17 acknowledges the complete cessation of Russian tourist flows, while implementation plans18 maintain flexibility regarding future cross-border co‑operation possibilities.
The region's approach to adaptation emphasises supporting export sector development and strengthening companies' R&D activities. This is complemented by efforts to promote entrepreneurship and digital transition, alongside initiatives to diversify the tourism sector through new European market development. Enhancing regional self-sufficiency across key sectors remains a central priority in the adapted strategy.
Human capital and labour force development
Workforce development stands as a central challenge for Kainuu's growth and competitiveness. The region has developed innovative approaches to attract and retain skilled workers through comprehensive programmes. These include creating relocation packages that integrate employment, housing, and services, while lobbying the central government to implement aspects of the 'Norwegian model' (see also Box 5.4) for student loan repayment. International student recruitment has been intensified, alongside focused efforts to support Ukrainian refugee integration into the workforce. Particular attention has been given to enhancing local companies' recruitment capabilities, especially for international talent.
The region places significant emphasis on developing attractive environments for workers through public‑private collaboration, ensuring that newcomers have access to both employment opportunities and essential services. This comprehensive approach aims to address both immediate workforce needs and long-term demographic challenges.
The “Norwegian model” addresses rural depopulation and labour shortages through targeted incentives and comprehensive regional support measures. Central to this approach are financial benefits tied to residence and employment in rural areas, combined with significant investments in public services and the local economy.
A key component of the model is student loan forgiveness, where graduates working in designated rural areas receive grants or partial forgiveness of their student loans. This incentive encourages young professionals to relocate and settle long-term. Increased employment opportunities are also a priority, with support provided to local businesses to create jobs, particularly focusing on integrating international graduates into the workforce. Additionally, investment in public services - including health, education, and infrastructure - enhances the quality of life, making rural areas more appealing to families and professionals alike.
The model’s strength lies in its holistic approach to tackling rural demographic challenges. By combining financial incentives, job creation, and improved living standards, it fosters a competitive advantage for rural regions. Its emphasis on leveraging local economic strengths makes it adaptable to diverse regions grappling with out-migration and labour shortages.
Source: Keinänen, A., Kahila, P., Hirvonen, T., Jolkkonen, A., Kurvinen, A., Leino, P., & Lemponen, V. (2022), Alueellisen opintolainahyvityskokeilun esiselvitys. Itä-Suomen yliopisto, Alue- ja kuntatutkimuskeskus SPATIA.
Infrastructure and connectivity
Connectivity plays a vital role in Kainuu's development strategy, encompassing transport infrastructure, digital networks, and regional accessibility. The region prioritises improvements to Highway 5 and railway connections, including the Kouvola-Mikkeli-Kuopio-Kajaani and Joensuu-Kontiomäki routes. Air connectivity through Kajaani airport and enhanced broadband availability are considered essential for regional development. The proximity to the Russian border presents unique challenges for mobile network coverage, particularly as Finland transitions from 3G to 5G networks.
Defence considerations increasingly influence infrastructure planning, with emphasis on strengthening connections to other parts of Finland and Europe via the Trans-European Transport Network (TEN-T). This includes maintaining lower-grade road networks and developing charging infrastructure for electric vehicles, reflecting a comprehensive approach to regional connectivity that serves both civilian and strategic needs.
Environmental sustainability
Kainuu demonstrates strong commitment to environmental sustainability through its recently approved wind power plan19, which includes provisions for 23 new or enlarged wind farms. The region is actively developing biogas facilities and renewable energy infrastructure, while supporting industry transition towards carbon-neutral closed-cycle production. Local public procurement practices are being reformed to reduce transport emissions, and agricultural practices are being advanced to enhance carbon sequestration.
A notable initiative is the Biopeitto Kainuu project, which focuses on developing circular economy-based fertilisers using local raw materials, strengthening agricultural resilience and reducing dependence on imports (Box 5.5). This project exemplifies the region's practical approach to combining environmental sustainability with economic resilience.
Funding: Just Transition Fund, Kainuu Regional Council, and local municipalities
Budget: EUR 543 000
Overview: The JTF Biopeitto Kainuu project develops innovative cover structures for mining waste areas using biocircular economy side-stream materials such as biochar, composted sewage sludge, and power plant ash. These materials aim to reduce the use of till, improve water management, and support plant growth in covered areas.
Duration and co‑ordination: Running from September 2023 to December 2025, the project is led by the Natural Resources Institute Finland (Luke) in partnership with the Geological Survey of Finland (GTK) and Kajaani University of Applied Sciences (KAMK).
Goals:
Reduce environmental impacts of mining waste, such as acidic leachate.
Minimise till use in cover structures.
Develop growth layers and utilise local by-stream materials.
Foster co‑operation between mines, municipalities, and side-stream producers.
Promote business opportunities beyond peat production.
Activities: The project experiments with recycled materials to improve soil, starting with greenhouse tests to grow grass. Promising mixtures will be used on mining waste areas after checking local conditions. The testing will take place at sites run by Elementis Minerals Oy and Terrafame Oy in Sotkamo, Kainuu.
Outcomes: By leveraging circular economy innovations, the project aims to reduce dependency on imported materials, improve environmental management in mining, and create new business opportunities, contributing to the sustainability of the Kainuu region.
Source: Geological Survey of Finland (8.1.2025), Biocover Solutions of Mining Sites in Kainuu (Biopeitto Kainuu), Available at: https://www.gtk.fi/en/research-project/biocover-solutions-of-mining-sites-in-kainuu-biopeitto-kainuu/
Multi-level governance and capacity-building
Kainuu actively participates in international networks, including the Association of European Border Regions and various EU-led initiatives such as Berry+, NSPA, and NEEBOR. However, it withdrew from the Barents Regional Council and Barents co‑operation as a whole in January 2025. The region has established innovative governance mechanisms, notably the preparedness forum established in 201920, which co‑ordinates regional and local authorities, businesses, and citizens to ensure vital societal functions during exceptional circumstances.
The cessation of Russian co‑operation has prompted a strategic pivot towards deeper Nordic and European partnerships, with increased emphasis on digital services and remote working solutions. This adaptation reflects the region's commitment to maintaining international connections while building new frameworks for regional development and cross-border co‑operation.
Regional profile
North Savo (Figure 5.7) exhibits demographic trends common to many Finnish border regions, with a declining and ageing population. The region faces economic challenges, with median income levels, GDP, and R&D expenditure per capita falling below national averages. Broadband connectivity remains relatively poor compared to national standards. The regional economy shows particular strengths in primary production and specific manufacturing sectors, notably in beverages, machine building and energy technology.
Although geographically proximate to Russia, North Savo does not share a direct border. The region has historically maintained a lower dependence on Russian tourism compared to other border regions, with international tourism overall representing a relatively small portion of the sector. However, the region's economic ties to Russia were more significant than initially recognised, particularly through industrial connections and trade routes. The closure of the Saimaa canal has disrupted traditional transport routes, while the war has affected the availability and pricing of energy, raw materials, fertilisers, and components.
Note: North Savo (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic attractiveness
North Savo presents strengths in productivity but challenges in youth unemployment. The region’s GDP per capita aligns with the EU average, while productivity measured as gross value added per worker is 9% above the EU median (Figure 5.8). However, the region presents a lower degree of economic diversification. In innovation and entrepreneurship, most indicators perform mid-level nationally, with relatively strong results in firms’ creation rate and PCT patent applications but weaker performance in high‑tech patenting. The labour market tracks EU levels of unemployment and employment, ranking mid‑range nationally. However, youth unemployment stands out as the region's weak point, ranking fourth nationally and among the top 10% at the EU level as of 2022.
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
The region faces challenges in attracting tourism but shows strengths in cultural capital. The region performs poorly in tourism indicators, both nationally and at the EU level, with a notably low share of foreign visitor overnight stays. In contrast, cultural capital indicators are relatively strong compared to EU counterparts, particularly in firm creation in the cultural sector, ranking among the top 5% performers in the EU as of 2020.
Land resilience and housing
North Savo shows balanced results in land resilience while excelling in housing affordability. The region’s exposure to river flooding and the share of land burned are higher than the national mid-range, while the change in soil moisture is above the country's average and performs well at the EU level. Notably, the region performs outstandingly in housing affordability indexes, ranking among the top three nationally and within the top 10% of performers at the EU level across all considered indicators.
Residential well-being
The region demonstrates strengths in education accessibility and health but shows weak social cohesion at the national level. Social cohesion indicators, including community center density and homicide rates, perform slightly better than the EU average but rank in the mid-lower tier nationally. Education accessibility is a strength, although the region struggles to attract international students in higher education. Health outcomes are bolstered by low air pollution and the highest doctor-to-inhabitant ratio in the country, despite health accessibility ranking mid-range nationally.
Connectedness
North Savo faces challenges in digitalisation and transportation connectivity. Download speeds rank the region as the fifth worst nationally, while North Savo is the second lowest in the Meta Social Connectedness Index, placing it among the bottom 5% of regions in the EU. Road and cycleway density are also limited, positioning the region in the lower mid-range nationally. However, performance improves in terms of population access to rail.
Natural environment
The region stands out for its leadership in renewable energy but encounters obstacles in natural conservation. The region excels in renewable energy, with 100% of electricity generation from renewables, surpassing EU averages. Transport emissions are moderate, ranking 8th nationally, and the impact of climate change, measured by additional cooling degree days is also moderate when compared to national levels, while the region ranks among the top 10% of best performers at the EU level. The region performs well in tree cover area at both national and EU levels, despite a decline in recent decades. However, the share of protected areas is low, ranking at the bottom range both nationally and within the EU.
Regional development priorities
The Regional Council's development priorities reflect both traditional strengths and emerging challenges in the changing geopolitical context. Prior to Russia's invasion of Ukraine, the region's strategic planning primarily considered Russia through its role in wood industry imports and energy production, without significant consideration of potential risks21. This perspective shifted dramatically as the war's effects became apparent, with regional surveys revealing that approximately 20% of exports were directed to Russia and Belarus, alongside significant cargo volumes through the Saimaa channel.
Despite these challenges, North Savo has demonstrated notable resilience. Companies within the region have successfully adapted their operations through product development and market diversification, adopting a dual focus on exploring new European markets while strengthening regional supply chains. This strategic localisation has not only reduced dependence on vulnerable international routes but has also enhanced the region's industrial base resilience.
Regional policy strategy
Strategic planning and adaptation
North Savo's recent implementation plans22 acknowledge significant changes in the operating environment, particularly affecting key industries. Beyond market access issues, the region faces increased costs and raw material availability challenges, notably impacting the mechanical and energy technology sectors, forest industry, and bio-refining. The tourism sector confronts both labour shortages and decreased visitor numbers.
The Regional Council has responded by prioritising business support, skills development, and employment initiatives to maintain social and economic stability. This comprehensive approach includes measures to enhance company competitiveness, support the unemployed, develop skills, improve population well‑being, and enhance regional connectivity and attractiveness.
Human capital and labour force development
The region has developed a comprehensive approach to securing skilled workers through several interconnected strategies. The implementation plan emphasises strengthening vocational and business‑oriented education models, improving access to education and apprenticeships, and enhancing partnerships between educational institutions and businesses. A notable initiative in this area is the Talent Hub Eastern Finland project23, which addresses projected decreases in student numbers by focusing on retaining international students within the region after graduation (Box 5.6).
Background: Forecasts indicate that the number of students in North Savo is expected to decline in the coming years. This trend highlights the critical importance of retaining as many international students as possible in the region after their graduation to ensure the region's vitality and sustainability.
Goal: The project, carried out by educational institutions in North Savo and North Karelia during 2023 to 2027, aims to support international students by helping them familiarise themselves with Finnish working life, build professional and social networks, improve their Finnish language skills, and access internships, job opportunities, and entrepreneurial pathways. By doing so, the project seeks to "root" these students in the region. The project also focuses on assisting employers in recognising the potential of international students. This effort is designed to lower barriers to hiring international talent and encourage businesses to actively engage with the region’s diverse pool of skilled individuals.
The project is funded by the European Social Fund Plus (budget: EUR 6.2 million).
Source: UEF (2025), Talent hub Eastern Finland, https://uefconnect.uef.fi/en/talent-hub-eastern-finland/; Pohjois-Savon liitto (2023), Itä-Suomi tahtoo pitää kiinni kansainvälisistä osaajista, https://www.pohjois-savo.fi/viestinta/uutiset/2023/08/ita-suomi-tahtoo-pitaa-kiinni-kansainvalisista-osaajista.html.
North Savo has responded to rapid economic changes through adaptive labour market strategies, including tailor-made vocational training programmes and increased co‑operation between educational institutions and regional employers. The region has also introduced innovative pilot programmes to address seasonal labour challenges in agriculture and forestry sectors.
Infrastructure and connectivity
North Savo faces several significant infrastructure challenges affecting regional development. The region's transport plan identifies key issues including insufficient charging infrastructure for electric vehicles, deteriorating lower-level road networks, and limited rail connectivity to Helsinki. The situation is further complicated by weak competitiveness in water transport and limited air connections, with Kuopio airport offering only three daily flights to Helsinki.
The Regional Council emphasises the importance of inter-regional collaboration in transport system development, particularly with other eastern Finnish regions. Priority projects include improvements to highways 5 and 9, enhancements to the Kouvola-Kajaani and Ylivieska-Iisalmi-Kontiomäki railway connections, and modifications to Lake Saimaa's water level to accommodate larger vessels.
Environmental sustainability
The region has established ambitious environmental goals through several strategic initiatives. A wind energy zoning plan24 identifies fourteen potential production sites, while the bioeconomy implementation plan25 sets an ambitious target of doubling sector value added by 2035. The region's climate roadmap26 targets carbon neutrality by 2035, emphasising climate culture development, circular economy enhancement, and sustainable resource use.
North Savo has responded to energy challenges by launching an Energy Master Plan focused on strengthening energy self-sufficiency and sustainability (Box 5.7). The plan emphasises diverse renewable energy sources, particularly bioenergy from agricultural and forestry by-products, while promoting technological innovation in energy production and distribution.
The North Savo Energy Master Plan is led by the Regional Council of North Savo in collaboration with the North Savo Energy Cluster, local municipalities, and private energy sector partners. The initiative aims to position North Savo as a leader in renewable energy and energy efficiency by upgrading energy infrastructure, attracting green investments, and fostering sustainability-driven industries. The project is funded by Regional Council of North Savo, European Structural Funds, and private investments (Budget: EUR 0.6 million).
Key Actions:
Energy grid and storage enhancements: Upgrading the regional grid to optimize the integration of renewable energy and developing energy storage systems to ensure a stable and reliable energy supply.
Attracting green industry investments: Promoting clean energy technologies such as hydrogen production and carbon-neutral industrial processes to stimulate green industry growth.
Energy-efficient technologies: Implementing smart grids and energy-saving practices across various sectors to enhance energy efficiency.
Strategic roadmap: Targeting carbon neutrality by 2030 in alignment with Finland's national climate goals.
Impact:
The Energy Master Plan has already attracted EUR 50 million in green energy investments, significantly increased renewable energy production, and enhanced regional energy security. These efforts have reduced North Savo's dependence on imported energy and established the region as a frontrunner in sustainable energy solutions.
By driving innovation and sustainable practices, the plan strengthens North Savo’s position as a key contributor to Finland’s clean energy transition and global climate objectives.
Source: Navitas Kehitys Oy (2025), Pohjois-Savon Energia Masterplan, https://navitas.fi/pohjoissavonenergiamasterplan.
Multi-level governance and capacity-building
North Savo demonstrates strong commitment to institutional development, particularly through its advocacy for the Finnish Emergency Services Academy in Kuopio (Box 5.8). The region has initiated an EU-funded project to establish a regional comprehensive security cluster27, aiming to enhance regional resilience through cross-regional co‑operation and partnership models.
The region has focused on building comprehensive security networks that integrate expertise from various institutions, addressing critical areas such as food security, climate resilience, and energy supply. This collaborative approach reflects an expanded view of security that prioritises interconnected risks and proactive mitigation strategies. The planned Centre of Excellence for Comprehensive Security represents a significant step toward establishing North Savo as a leader in security innovation and emergency preparedness.
The planned establishment of the Centre is being supported by the City of Kuopio, the Finnish Emergency Services Academy, and the University of Eastern Finland. Funding is expected to come from national security programmes, EU structural funds, and private investments.
The primary objective of this initiative is to create a nationally significant hub for comprehensive security, enhancing emergency preparedness and resilience in critical sectors such as health, climate adaptation, and food security.
The Centre's planned focus areas include:
Specialised training programmes: Developing advanced training modules for professionals in emergency management and key sectors, incorporating state-of-the-art methodologies and tools.
Cross-sectoral simulations: Conducting realistic, large-scale simulations involving multiple sectors to strengthen co‑ordination and improve response strategies for complex emergencies.
Joint planning and innovation: Promoting collaboration between public and private stakeholders to develop innovative solutions for climate resilience, patient safety, and food security.
Although still in the planning stages, the Centre aims to position North Savo as a leader in comprehensive security by creating a model of excellence aligned with national and EU security frameworks. This initiative will bolster regional resilience while offering a replicable blueprint for other regions to follow.
Source: Business Kuopio (2025), Centre of Excellence for Comprehensive Security, Accessed 13.1.2025, https://www.businesskuopio.fi/en/investinkuopio-en/centre-of-excellence-for-comprehensive-security/.
Regional profile
North Karelia (Figure 5.9) has experienced sustained population decline over several decades, accompanied by various socio-economic challenges. The region records lower than national average figures for tertiary education attainment, median incomes, R&D expenditure, and GDP per capita, while also facing challenges with broadband connectivity. The regional economy is characterised by strong forestry and wood products manufacturing sectors, alongside a notable plastic products industry - the latter emerging from the region's historical connection to Nokia-related manufacturing through Perlos.
The region has maintained significant connections with Russia, evidenced by a higher-than-national‑average proportion of Russian residents. Russian visitors have historically formed a crucial segment of the tourism sector, accounting for more than half of international tourists before 2014, though the region's overall share of international tourism remains among the lowest of Finland's border regions.
North Karelia has faced significant economic challenges due to the economic sanctions to Russia and closure of the eastern border, with cross-border trade being heavily impacted alongside notable effects on the tourism sector. The region faces challenges in unemployment, reduced business profitability, and weakened accessibility following the Saimaa canal closure. Energy self-sufficiency has become a key priority, with the region actively participating in renewable energy initiatives. The cessation of EU-funded cross-border collaboration programmes has necessitated strategic reorientation towards new international partnerships.
Note: North Karelia (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic Attractiveness
North Karelia faces headwinds in the labour market. The region’s GDP per capita aligns with the EU median but is particularly low at the national level, ranking as the second lowest (Figure 5.10). Conversely, economic diversification is relatively strong nationally but falls slightly below the EU level. Productivity ranks mid-level nationally while exceeding the EU median. In innovation and entrepreneurship, the region shows modest performance. All indicators fall below the EU average, though they rank mid-range nationally. High-tech patenting activity is especially weak, placing the region at the bottom of the country’s distribution. The labour market represents the region’s most significant challenge. Overall, unemployment ranks third nationally (or first nationally according to the Ministry of Economic Affairs and Employment in 2024)28, while youth unemployment is even more concerning, ranking second nationally and placing North Karelia in the bottom 6% of EU performers as of 2022.
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
The region faces significant hurdles in tourism but demonstrates notable strengths in cultural capital. All tourism indicators fall below the EU average, with the share of overnight stays by foreign visitors being particularly low, ranking fifth lowest nationally. In cultural capital, the region performs at a mid-level nationally, yet in the top 10% of OECD regions for museums & galleries per capita and the top 7% for theatres. However, the firm creation rate culture sector is a standout strength, ranking fourth nationally and placing North Karelia among the regional top 2% at the EU level as of 2020.
Land resilience and housing
North Karelia faces challenges in land resilience, while excelling in housing affordability. The region’s exposure to river flooding and land burned of concern, ranking third and fourth nationally, respectively, however floods and fire have not historically caused major risk or damage compared to other OECD regions facing similar weather events. Conversely, the region has registered a positive increase in soil moisture, contrasting with the decline observed at the EU level. In housing, North Karelia records the lowest levels nationally in the house price index of 2022. This factor positions the region among the top performers at the EU level in terms of housing affordability.
Residential well-being
The region demonstrates strengths in social cohesion but faces challenges in education and mixed outcomes in health. In social cohesion, the region stands out for its high density of community centres and low prevalence of homicides, ranking in the upper range nationally and well above EU levels. In education, all accessibility indicators fall below the EU average and are in the lower middle of the national distribution. Particularly concerning is the share of international students, which is the lowest in the country. In health, the region benefits from low levels of air pollution and shows results in line with national averages for healthcare accessibility, however distances to key services remain very large by EU and OECD standards.
Connectedness
North Karelia shows modest performance in digitalisation but faces significant transportation challenges. In digitalisation, download speed and citizens’ connectedness fall in the lower-middle range nationally, with Meta Social Connectedness Index ranking in the bottom 10% at the EU level. In transportation, the region ranks among the bottom four nationally in road density, cycleway density, and rail access, all indicators significantly below the EU average.
Natural environment
The region exhibits mixed outcomes in environmental and natural capital indicators. As a positive, North Karelia’s grid operates on virtually 100% renewable electricity. However, greenhouse gas emissions from transport are slightly above the EU average, while climate change effects, reflected by an increase in cooling degree days, position the region in the upper middle range nationally. In natural capital, North Karelia has the fourth-highest tree cover share nationally. However, the region’s limited protected areas and a notable decline in tree cover over recent decades contrast with EU standards.
Regional development priorities
The Regional Council's development priorities have undergone significant transformation following Russia's invasion of Ukraine. Pre-war strategic planning, developed in 2021, positioned Russia as an important international partner29. However, recent assessments indicate that existing regional development tools have proved insufficient to address the sudden changes in the international operating environment.
The Council's current priorities emphasise energy security, supply chain resilience, export diversification, and workforce immigration. Particular attention is given to increasing domestic energy and food production, improving logistics infrastructure, and securing compensation for lost EU-Russia cross-border co‑operation funding. The region has also intensified its focus on defence-related development, including strengthening the Finnish Defence Forces' service centre in Joensuu with NATO missions.
Regional policy strategy
Strategic planning and adaptation
North Karelia's strategic planning has required comprehensive revision to address the changed international environment. The region's implementation plan30 acknowledges significant impacts on unemployment, business profitability, and regional accessibility, particularly following the closure of the Saimaa canal. In response, the region has prioritised achieving energy self-sufficiency, evidenced by participation in initiatives such as the EXPRESS project31 promoting renewable energy development (Box 5.9).
The Council advocates for establishing North Karelia as a special economic zone to facilitate pilot programmes and new operational models addressing regional challenges32. This includes providing targeted support for companies seeking alternative logistics routes and new international markets to replace Russian trade relationships.
The project aims to increase energy self-sufficiency and expand the share of renewable energy across participating regions. By exchanging knowledge and learning from successful practices, the project’s insights will be instrumental in shaping the next regional strategic programme for 2026–2029.
The project is funded by Interreg Europe (Budget: EUR 1.86 million).
Key results to date:
Wind energy potential in North Karelia: A comprehensive study has identified the theoretical capacity to install up to 1,184 wind turbines in the region, highlighting significant untapped potential given the current lack of wind farms in North Karelia.
Transition to carbon-neutral energy: Efforts are underway to reduce reliance on direct biomass burning and phase out peat usage in district heating systems, supporting the transition to carbon-neutral energy production.
By promoting innovative approaches and leveraging the experiences of European regions, the EXPRESS project contributes to building a more sustainable and energy-independent future.
Source: Interreg Europe (2025), EXPRESS – European regions promoting renewable energy self-sufficiency, https://www.interregeurope.eu/express.
Human capital and labour force development
Workforce development remains central to North Karelia's strategy, with emphasis on securing and developing skilled labour through multiple approaches. The region advocates for maintaining a nationwide educational network while strengthening research and innovation activities. Significant focus is placed on international recruitment and integration, particularly supporting Ukrainian and Russian citizens settling in the region.
The region has implemented specialised training and upskilling programmes to support labour market transitions, particularly in sectors most affected by the closure of the Russian border. These initiatives emphasise practical learning in renewable energy, logistics, and digital industries, with strong private sector collaboration ensuring alignment with market needs.
Infrastructure and connectivity
Infrastructure development forms a key component of North Karelia's adaptation strategy. The region emphasises improving rail connections, particularly the Joensuu-Imatra and Joensuu-Kontiomäki routes, to address changing logistics needs following the Saimaa canal's closure. High-speed telecommunications infrastructure development is prioritised, especially in sparsely populated areas where commercial solutions are not viable. The region also advocates for the construction of a new main power grid in Eastern Finland, running from Kainuu through North Karelia to South Karelia.
The region has demonstrated effective crisis management in maintaining connectivity, exemplified by the rapid repair of the Syrjäsalmi bridge and securing state-supported air links. Digital transformation has been accelerated, with initiatives like Ilonet Oy in Ilomantsi providing comprehensive fibre-optic network coverage to ensure regional connectivity (Box 5.10).
Ilonet Oy, a company owned by the municipality of Ilomantsi, has successfully established a robust broadband infrastructure to provide equal access to high-speed internet for all residents of the municipality, regardless of their location.
The total project cost was EUR 9.6 million, financed through multiple sources: Traficom (Finnish Transport and Communications Agency) contributed EUR 3.3 million in state aid, the municipality of Ilomantsi provided EUR 3.5 million, and additional funding came from the Rural Development Fund and the European Regional Development Fund (ERDF).
The project’s goal was to ensure affordable and equal access to high-speed internet for all residents during the construction phase. Between 2013 and 2016, Ilonet Oy constructed 1 240 km of fiber-optic network. By 2019, this infrastructure supported approximately 1 360 active connections, with significant potential for further expansion.
The fibre-optic network has delivered wide-ranging benefits to permanent and seasonal residents, businesses, and agricultural enterprises. Beyond providing high-speed internet, the network also supports TV services and telephone connectivity, significantly enhancing digital infrastructure across the region.
Ilonet Oy operates sustainably, with consistent financial performance and reduced costs for customers. As of the latest financial data, the company reported an annual turnover of EUR 886 000, including a profit of EUR 75 000.
Source: Ilonet Oy. (2025), https://ilonet.fi/info.
Environmental sustainability
North Karelia has placed particular emphasis on renewable energy development within the context of changed geopolitical circumstances. The region advocates for expanded wind power development in eastern Finland, whilst acknowledging the need to balance this with radar-related defence requirements near the border. A compensation model is proposed for municipalities unable to benefit from wind power development due to defence obligations.
The region has accelerated its drive towards energy self-sufficiency through various initiatives, including a planned hydrogen production facility in Joensuu and the establishment of the Eastern Finland Energy Forum. These efforts are complemented by the development of bioenergy facilities and innovative waste‑to-energy technologies.
Multi-level governance and capacity-building
North Karelia's governance approach emphasises co‑ordination across EU, national, regional, and local levels. The region advocates for maintaining special status considerations in EU Cohesion Policy for Eastern and Northern Finland, whilst pushing for strengthened place-based policies and funding at the national level. The closure of the Russian border has led to increased interregional co‑operation, co‑ordinated through the Eastern Finland Co‑ordination Group33.
The region has strengthened its institutional adaptability through the creation of crisis response teams and new governance structures focused on real-time monitoring and strategic co‑ordination. These efforts are supported by transparent decision-making processes, stakeholder engagement, and enhanced collaboration with local businesses and civil society organisations. Security considerations have been integrated into broader development planning, encompassing energy resilience, infrastructure security, and socio-economic stability.
Regional profile
South Karelia (Figure 5.11) has experienced sustained population decline over several decades, accompanied by socio-economic indicators that fall below national averages, including median incomes, broadband accessibility, GDP per capita, R&D expenditure, and tertiary education levels. The region's economy is dominated by the pulp and paper industry.
The region has historically positioned itself as a gateway to Russia, with Russians comprising 80-90% of international arrivals during peak years and the highest proportion of Russian residents in Finland. This orientation is reflected in pre-war transport system strategies that emphasised cross-border traffic connections. However, Russia's invasion of Ukraine has fundamentally altered this positioning, leading to significant regional impacts and necessitating comprehensive strategic revisions.
Note: South Karelia (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic Attractiveness
South Karelia demonstrates a balanced economic performance, but challenges persist in innovation. The region’s GDP per capita is 12% above the EU median, while Gross Value Added per worker ranks second nationally and 22% above the EU’s as of 2020. In innovation and entrepreneurship, South Karelia exhibits mixed performance. Trademark applications adjusted for population rank the lowest in the country, but the region performs well in patenting activity. In terms of firm creation, South Karelia exhibits a rate 14% below the EU median but ranks mid-range at the national level. In the labour market, most indicators align with the EU and show levels comparable to the national average
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
The region shows moderate performance in tourism while demonstrating more solid performance in cultural capital. Tourism indicators exhibit lower levels than the EU's average, with the number of overnight stays in tourist accommodation per capita is about 40% below the EU mean, however the region ranks fourth nationally by this metric and still remains in the top 37% of OECD regions. In terms of Cultural Capital, while the region does not rank particularly strong nationally in any indicator, its performance consistently exceeds the EU’s, with more than twice museums and galleries per inhabitant.
Land resilience and housing
South Karelia encounters difficulties in land resilience with strengths in housing performance at the EU level. The share of built-up areas exposed to river flooding is 124% above the EU median, and the share of land burned ranks as the third highest nationally, though it remains low compared to the EU average. On a positive note, soil moisture levels show progress, contrasting the reductions observed at the EU level. In housing, the region performs well compared to the EU but ranks mid-range nationally.
Residential well-being
The region exhibits mixed outcomes in social cohesion, education, and health. In social cohesion, the region ranks mid-level within the EU distribution but shows weaker performance at the national level. In education, South Karelia has the highest distance nationally to primary schools and second highest to kindergarten services, though it performs relatively well nationally in the density of higher education institutions and the share of international students. In health, the region benefits from low air pollution levels. However, distances to hospital services are relatively high nationally and place the region in the bottom 1% of EU performers, highlighting significant accessibility challenges to critical healthcare services.
Connectedness
The region faces significant challenges in digitalisation and moderate outcomes in transportation infrastructure. In digitalisation, the region performs mid-range nationally in download speeds and in Meta Social Connectedness Index. However, its connectedness index ranks among the bottom 10% of performers at the EU level. In transportation, the region performs relatively well nationally, particularly in road density. However, its performance is weaker when compared to EU counterparts. The same holds true for rail performance.
Natural environment
South Karelia exhibits environmental headwinds. With 96% of the grid stemming from renewable sources, the region ranks aligns with strong national and EU levels. However, greenhouse gas emissions from transport are a concern, being four times the EU average and the highest nationally. The impact of climate change is evident in the additional cooling degree days, which are the second highest in the country. In natural capital, while the tree cover rate is strong, the region has experienced a significant decrease, performing well below the EU trend. Additionally, the share of protected areas is notably low at the EU level.
Regional development priorities
South Karelia stands out among Finnish border regions for its proactive response to changed circumstances, being one of few regions to formally update its regional plan34 in 2023 specifically due to the war in Ukraine. This update particularly addressed external border co‑operation, border programme activities, and transport system development.
The region's transport system strategy35 has required substantial revision, as previous growth expectations centred on transport connections to Russia and Asia. The cessation of Russian tourism has particularly impacted the local service sector, with estimates suggesting regional economic losses of approximately one million euros daily following border closures. The city of Imatra has received government support for sudden structural change in response to these impacts.
Regional policy strategy
Strategic planning and adaptation
South Karelia's strategic planning has undergone comprehensive revision to address the changed international environment. The region is actively supporting business internationalisation into new market areas, financing development projects for companies seeking international growth, and promoting international investments. The region is also exploring opportunities presented by NATO membership while expanding expertise in innovative public procurement and cybersecurity.
The Regional Council has initiated several projects to diversify tourism infrastructure and attract new domestic and international visitors. These include establishing the Finnish wilderness and nature culture museum in Imatra36, and developing the Kutila canal area in Taipalsaari as a recreational destination.
Human capital and labour force development
The region faces particular challenges in workforce development given its relatively significant Russian-speaking minority and altered immigration outlook. Future strategies emphasise developing language training for newcomers, improving English-language service availability, and strengthening connections between students and regional companies. The Regional Council maintains continuous dialogue between businesses and educational institutions to anticipate and address labour needs effectively.
Infrastructure and connectivity
The war has significantly impacted transport flows across all modes, elevating the importance of regional transport infrastructure for security of supply and military mobility. The Karelia railway (Box 5.11) and domestic water transport in Lake Saimaa have seen increased activity, though capacity limitations constrain further growth. The region prioritises several key infrastructure projects, including developing a double track between Luumäki and Joutseno, improving connections to Joensuu, and enhancing the Port of Mustola and Lappeenranta airport.
The region faces unique challenges in mobile network coverage, with approximately 1 300 km along the Russian border remaining without efficient 5G coverage due to international radio guidelines. The simultaneous phase-out of 3G networks has further complicated telecommunications for border area residents (particularly problematic for those people living close to the border), leading to increased focus on broadband network expansion.
The Regional Council of South Karelia has identified key investments in the Karelian railway line as a priority and is advocating for the national government to fund the construction of a double track between Luumäki and Joutseno1. This railway connection has become increasingly important due to the disruption of transport routes caused by the ongoing war.
The closure of operations on the Saimaa Canal and the cessation of timber imports from Russia have significantly increased traffic on the single-track Karelian line. Lumber, previously transported shorter distances via the canal, is now shipped over longer domestic routes. Instead of direct waterway transport, timber is routed through coastal ports using a combination of road and rail, serving the wood processing industry in Southeast and Eastern Finland.
The Karelian line plays a significant role in supporting Finnish industries by facilitating the efficient transport of raw materials, such as timber, and finished goods, which is vital for maintaining competitiveness and profitability. Additionally, the line serves as an important regional connector for passenger transport, enabling mobility between urban centres and rural areas. Its relevance has grown with the increased reliance on rail transport following the closure of the Saimaa Canal and the cessation of timber imports from Russia.
Improving the Karelian line through investments, such as constructing a double track between Luumäki and Joutseno, would strengthen industrial logistics by increasing capacity and efficiency. Furthermore, it would enhance regional accessibility, improve connections to international markets via coastal ports, and contribute to the resilience of Finland’s national transport infrastructure. A well-functioning rail network also reduces reliance on more vulnerable transport modes, bolstering the security and reliability of supply chains.
1. Etelä-Karjalan liitto (2024), Luumäen ja Joutsenon välinen kaksoisraide Karjalan radalle odottaa investointipäätöstä, https://liitto.ekarjala.fi/wp-content/uploads/2024/03/Raideliikenne-esite-2024.pdf and Etelä-Karjalan liitto (2022), Karjalan radan kehittämistä vauhditettava Luumäen ja Joutsenon välillä, https://liitto.ekarjala.fi/wp-content/uploads/2022/05/Raide_esite_A4_2022.pdf.
Source: Etelä-Karjalan liitto (2024), Luumäen ja Joutsenon välinen kaksoisraide Karjalan radalle odottaa investointipäätöstä, https://liitto.ekarjala.fi/wp-content/uploads/2024/03/Raideliikenne-esite-2024.pdf; Etelä-Karjalan liitto (2022), Karjalan radan kehittämistä vauhditettava Luumäen ja Joutsenon välillä, https://liitto.ekarjala.fi/wp-content/uploads/2022/05/Raide_esite_A4_2022.pdf
Environmental sustainability
The region faces environmental challenges from increased logging pressure to replace Russian timber imports, raising concerns about biodiversity. South Karelia has responded with comprehensive initiatives for environmental sustainability, including commissioning studies on green transition in road traffic and identifying potential locations for charging and biogas stations.
As a "Hinku region"37, South Karelia targets an 80% reduction in its carbon footprint by 2030. The establishment of the Vetylaakso association38 in 2023 demonstrates the region's commitment to renewable energy and hydrogen economy development. Additionally, the new biomaterials research centre in Lappeenranta, organised jointly by LAB University of Applied Sciences and LUT University, represents a significant investment in renewable energy research and innovation.
Multi-level governance and capacity-building
The Russian invasion has fundamentally altered South Karelia's traditional co‑operation patterns, leading to the termination of EU-funded cross-border collaboration programmes and complications in Asian partnerships due to transport disruptions. The region has pivoted towards strengthening ties with Nordic countries and the Baltic Sea region while maintaining active participation in both Eastern and Southern Finland Advisory Boards and the Association of European Border Regions.
The region has strengthened its comprehensive security initiatives through projects incorporating artificial intelligence for risk analysis and virtual civil defence simulations. Increased co‑operation between South Karelia and Kymenlaakso has facilitated unified advocacy for regional interests and more effective responses to shared challenges. The region's long-term vision emphasises transforming current challenges into opportunities for resilience and growth, particularly through cultural industries, renewable energy development, and enhanced regional co‑operation.
Regional profile
South Savo (Figure 5.13) has experienced sustained population decline over an extended period, accompanied by socio-economic indicators that fall below national averages, including tertiary education attainment, income levels, GDP per capita, R&D expenditure, and broadband accessibility. The region's economy maintains a significant focus on primary production, particularly forestry, alongside various manufacturing sectors.
Russian visitors have historically represented an important segment of the tourism sector, accounting for over 50% of international arrivals before 2014, though the region's overall share of international tourism remains among the lowest of Finland's border regions. The region also serves as a popular destination for summer cottages, creating unique challenges and opportunities for local service provision and infrastructure development.
Note: South Savo (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic attractiveness
South Savo exhibits challenges across economic attractiveness indicators. The region’s GDP per capita is the lowest nationally, 9% below the EU average as of 2020. At the same time, its productivity ranks among the lowest nationally (Figure 5.14). While economic diversification is relatively strong at the country level, it remains below the EU average. In innovation and entrepreneurship, the region consistently ranks at the bottom nationally across most indicators, including patenting activity and firm creation rates, with the latter ranking second lowest nationally. The labour market also faces significant challenges, with the third lowest employment rate in the country.
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
The region combines national strengths in tourism with notable achievements in cultural capital. The region performs well in attracting tourism at the national level; however, challenges persist when compared to the EU, particularly in attracting foreign visitors. In terms of cultural capital, South Savo ranks in the upper distribution nationally, particularly excelling in firm creation in the cultural sector, where it ranks third with the firm creation rate in the top 2% of EU regions in 2020. Cultural capital indicators also perform well at the EU level, with the number of theatres per inhabitants 160% above the EU median.
Land resilience and housing
South Savo showcases good performance in climate resilience and housing affordability, though the latter has been diminishing. The region exhibits flooding exposure and land burned at levels similar to the EU, while performing strongly with positive soil moisture change, ranking in the top 2% at the EU level and second nationally. In terms of housing, the region demonstrates some of the lowest price indicators both nationally and at the EU level. However, it also has the highest annual price increase in the country as of 2022.
Residential well-being
The region exhibits high accessibility to primary schools and benefits from excellent air quality. In terms of social cohesion, South Savo ranks mid-level within the EU but performs worse than its national peers with the highest seventh prevalence of homicides per inhabitants. In education, the region excels in accessibility, ranking in the top three nationally for citizens proximity to kindergartens and primary schools, while other factors, such as the density of higher education institutions, rank mid‑range at national level. In health, South Savo benefits from low air pollution levels, while access to key health services aligns closely with the national average. Notably, proximity to cardiology services is more than eight times the EU median.
Connectedness
South Savo faces challenges in digitalisation and transportation. In digitalisation, the region’s download speed ranks last nationally, and it also performs poorly in the Meta Social Connectedness Index, at 83% below the EU average. In transportation infrastructure, the region ranks in the lower middle nationally, with a particularly low score for cycleway density. Access to rail is also limited compared to the EU level, highlighting gaps in connectivity.
Natural environment
The region shows adverse impacts from climate change impacts while natural capital indicators perform well. South Savo achieves near-complete renewable electricity generation; however, greenhouse gas emissions from transport remain 46% above the EU median, and place South Savo in the upper-middle range nationally. Additionally, the region ranks third nationally in the increase in cooling degree days, highlighting risks posed by climate change. In natural capital, the tree cover rate is more than twice the EU median, though it has experienced a slight decline in recent decades. Nationally, the region stands out for its share of protected areas, ranking among the highest, though it remains relatively low at the EU level.
Regional development priorities
South Savo's pre-war regional development planning reflected expectations of deepened co‑operation with Russia, though this orientation was not uniformly reflected across strategic documents. The Russian invasion of Ukraine has necessitated significant strategic revisions, though recent implementation plans maintain a relatively modest focus on Russian-related impacts, primarily addressing energy solution requirements.
The Regional Council has identified several key development priorities, including directing increased R&D funding to areas beyond major university towns, supporting tourism industry adaptation, and addressing the specific needs of areas particularly affected by the cessation of Russian co‑operation. The Council advocates for enhanced recognition of areas without universities, promoting RDI activities through multidisciplinary universities of applied sciences.
Regional policy strategy
Strategic planning and adaptation
South Savo's strategic planning acknowledges the need to raise regional innovation capacity, evidenced by the commissioning of a dedicated RDI activities roadmap39. This framework outlines specific tools and targets, including more aggressive pursuit of national and international funding, enhanced recruitment of international R&D talent, and support for student entrepreneurship through dedicated physical spaces.
The region has demonstrated adaptability in tourism development through initiatives such as the European Region of Gastronomy Saimaa Management Project, which emphasises regional culture and nature-based attractions (Box 5.12). This rebranding effort includes multilingual promotional materials, international fair participation, and digital marketing campaigns targeting Western European audiences.
The initiative aims to elevate South Savo’s visibility and attractiveness as a premier European gastronomic and cultural destination by capitalising on its designation as a European Region of Gastronomy. The project’s primary objective is to diversify South Savo’s tourism base by reducing its reliance on Russian visitors and attracting a broader range of international tourists. By integrating gastronomy, culture, and nature, the initiative strengthens the local tourism economy while promoting sustainability.
The project reflects South Savo’s proactive approach to rebranding and resilience, fostering long-term benefits for the region’s tourism industry and enhancing its reputation as a sustainable, vibrant, and globally competitive destination.
Key actions:
Rebranding and marketing campaigns: Developing multilingual marketing materials and launching region-specific campaigns targeting Western European markets. Participation in international tourism fairs to position South Savo as a competitive and appealing destination.
Support for local businesses: Collaborating with tourism providers to design unique packages that highlight the region’s cultural, gastronomic, and natural assets, creating distinctive visitor experiences.
Training and capacity building: Offering tailored training programmes to equip local tourism operators with the skills needed to attract and engage international markets while enhancing service quality.
Digital marketing initiatives: Rolling out targeted online campaigns to reach Western European audiences, leveraging social media platforms, Search Engine Optimisation (SEO) strategies, and influencer partnerships.
The project is a collaborative effort supported by the South Savo Regional Council (co‑ordinator) jointly with South Karelia and North Karelia, the local municipalities, and tourism businesses, with a total budget of EUR 1.2 million, funded by the European Regional Development Fund (ERDF), municipal contributions, and private sector investments.
Source: Etelä-Savon maakuntaliitto (2024), European Region of Gastronomy, https://www.esavo.fi/european-region-of-gastronomy-saimaa-management-project-2023-2025-.
Human capital and labour force development
The region faces particular challenges in workforce development, necessitating secured access to education at all levels. This includes promoting access to university-level education despite the absence of a local university, while maintaining existing secondary education and applied sciences institutions. The strategy emphasises trilateral co‑operation between the public sector, educational institutions, and companies to attract talent.
South Savo has implemented targeted training and international recruitment programmes to address labour market disruptions, particularly in sectors affected by geopolitical changes. The introduction of English-language training programmes aims to enhance the region's attractiveness to international students and professionals while facilitating their integration into the local economy.
Infrastructure and connectivity
Infrastructure development priorities for the region include increasing basic road maintenance funding, ensuring functional road and rail connections throughout eastern Finland, and securing telecommunications systems in sparsely populated areas. Particular emphasis is placed on improvements to Highway 5 and the Kouvola-Kuopio railway connection, alongside developing service networks for alternative fuel sources40.
The region has demonstrated proactive infrastructure adaptation in response to geopolitical changes, implementing strategic improvements to maintain resilient connectivity. These efforts include upgrading key transport routes and strengthening digital infrastructure, with particular attention to maintaining vital road and rail links for economic sustainability.
Environmental sustainability
South Savo has demonstrated significant commitment to renewable energy development through comprehensive feasibility studies across multiple sectors (Box 5.13). The region has examined the potential for wind, solar, and geothermal energy production, identifying over 50 potential wind energy sites, though defence requirements limit development to seven areas. Solar energy development focuses on 16 potential new sites, primarily utilising former peat production areas, while geothermal energy shows promise for residential heating applications.
The Regional Council advocates for resolution of defence-related radar issues to enable equitable wind energy development opportunities. In cases where defence requirements preclude wind power development, the Council seeks compensation mechanisms to address inequalities between municipalities that can and cannot benefit from wind power construction.
Wind Energy
A study of potential wind energy sites in South Savo highlights the impact of defence requirements on the development of wind energy in eastern Finland. The study identified more than 50 potential areas for wind energy production in the region. These sites could have a significant local economic impact, particularly through the employment generated during the construction phase and the tax revenues they would provide for municipalities.
However, after a preliminary assessment by the Defence Forces, only seven areas were deemed acceptable from a defence perspective. This limitation underscores the need to balance renewable energy development with national security considerations.
Solar Energy
The report identifies 16 potential sites for solar power production, primarily located on former peat production areas. This selection supports the transition to cleaner energy production, offering a sustainable way to repurpose degraded peatlands for renewable energy generation.
Geothermal Energy
The report also examines the potential for geothermal energy as a means of heating homes in South Savo. Based on the heat conductivities of local rock types, the region is assessed as being reasonably suitable for geothermal energy use. The report further identifies specific areas that are particularly advantageous for geothermal energy utilisation, offering insights into where this technology could be most effectively deployed.
Conclusion
The findings underscore the diverse renewable energy opportunities available in South Savo, including wind, solar, and geothermal energy. These resources, if effectively developed, could significantly contribute to the region's energy transition, local economic growth, and environmental sustainability. However, constraints such as defence requirements and the suitability of sites highlight the need for strategic planning and collaboration across sectors to fully harness South Savo’s renewable energy potential.
Sources: Ramboll (2023). Etelä-Savon potentiaalisten tuulivoima-alueiden vaikutusten arviointi, https://www.esavo.fi/resources/public//Kehittaminen/Maakuntakaava/vaihekaava3/Etel%C3%A4-Savon%20tuulivoima%20selvitys%20yhteenvetox%209.2.2023.pdf; Etelä-Savon maakuntaliitto (2022), Potentiaaliset tuulivoima-alueet Etelä-Savossa,taustaselvitys, https://www.esavo.fi/resources/public//Kehittaminen/Maakuntakaava/Vaihekaava%204/Potentiaaliset%20_tuulivoima-alueet%20Etel%C3%A4-Savossa_Taustaselvitys.pdf; FCG (2023), Etelä-Savon aurinkoenergiaselvitys, https://www.esavo.fi/resources/public//Kehittaminen/Maakuntakaava/vaihekaava3/Etel%C3%A4-Savon%20aurinkoenergiaselvitys_raportti.pdf; FCG (2023), Etelä-Savon geoenergiaselvitys, https://www.esavo.fi/resources/public//Kehittaminen/Maakuntakaava/vaihekaava3/Etel%C3%A4-Savon%20geoenergiaselvitys-raportti.pdf.
Multi-level governance and capacity-building
South Savo maintains active participation in EU co‑operation through various initiatives, including Interreg-funded projects focused on knowledge worker retention and rural area resilience. The region's designation as a European Region of Gastronomy exemplifies successful international engagement to support tourism development. The Council emphasises the importance of EU financial contributions for eastern and northern Finland's development, particularly concerning national security of supply maintenance.
The region has utilised AIKO funding41 to promote regional resilience in response to international crises, while strengthening internal co‑operation mechanisms. The closure of the Russian border has necessitated enhanced internal co‑ordination within South Savo. The region addresses these challenges through cross-regional summits, strategy alignment, and joint advocacy initiatives to optimise resource management and enhance regional resilience.
Regional profile
Kymenlaakso (Figure 5.15) has experienced sustained population decline over several decades, accompanied by challenges in socio-economic indicators. The region records the lowest R&D expenditure per capita among Finland's border regions, alongside low tertiary education rates, median incomes, and GDP per capita figures. Broadband connectivity remains below national standards. The regional economy is characterised by a strong forestry industry, chemical industry, and transportation and logistics sectors, particularly in warehousing and support services.
Russian visitors have historically represented a crucial segment of the tourism sector, accounting for over 70% of international arrivals during peak years. The region also maintains a significantly higher proportion of Russian residents compared to most Finnish regions.
As a result of the economic sanctions and eastern border closure, Kymenlaakso has faced multiple challenges, including industrial plant closures and significant disruption to established business patterns. The region has been designated as an area of sudden structural change, reflecting the severity of impacts. The closure of the Russian border has eliminated access to important energy sources, raw materials, and logistical partnerships.
Note: Kymenlaakso (highlighted with dark blue colour) and other eastern and southeastern border regions (light blue).
Source: Microsoft Bing Maps.
Regional attractiveness
Economic Attractiveness
Kymenlaakso performs strongly in economic indicators but faces challenges in innovation, entrepreneurship, and the labour market (Figure 5.16). The region’s GDP per capita is 23% above the EU median, second nationally, with productivity ranking third and exceeding the EU’s as of 2020. However, the region faces challenges in innovation, with low firm creation rates and weak trademark and patent application activity. High-tech patenting is particularly underdeveloped, a result of the region’s historical dependence on primary industries and employment in a few concentrated firms and sectors. The labour market also presents notable opportunities, with the highest unemployment and youth unemployment rates nationally as of 2022. The latter is especially concerning, at nearly four times the EU median.
Note: The red dotted line shows the Composite Score in the region vs Finland, and the blue dotted line shows the Composite Score vs the EU
Cultural and visitor appeal
Kymenlaakso faces challenges in tourism but excels in cultural capital. The number of overnight stays in tourist accommodations per inhabitants are about 80% less than the EU average, with the region ranking last nationally. However, the region performs well in the density of tourism information centres. I cultural capital, the number of museums, galleries, and theatres per inhabitant is significantly above the EU median, with theatres ranking among the top nationally. Additionally, the employer firm creation rate in the cultural sector is well above the EU level, ranking first in the country as of 2020. Cultural capital is complemented by the region hosting the Verla UNESCO World Heritage site.
Land resilience and housing
The region exhibits weak outcomes in land resilience, but favourable housing affordability at the EU level. Notably, the region ranks in the lowest 20% of EU regions for exposure to river flooding and land burned, placing first nationally for the latter. Lastly, although soil moisture levels have shown a positive trend over recent decades, they still perform at a mid-level nationally. In housing, the house price per sqm is 43% below the EU median. In fact, the region ranks second lowest nationally in this indicator.
Residential well-being
Kymenlaakso shows strong performance in social cohesion but mixed outcomes in education and health. The region performs well in social cohesion, with the number of community centres per inhabitant above the EU and homicide rates per inhabitants 46% below the EU average. In education, access to primary schools and kindergartens is relatively limited, with greater distances than the EU’s. Additionally, the density of higher education institutions is notably low. In health, the region benefits from the third‑lowest level of air pollution nationally. However, the number of doctors per inhabitant and proximity to cardiology services rank the lowest in the country posing challenges to well-being.
Connectedness
The region faces significant challenges in digitalisation and moderate outcomes in transportation infrastructure. In digitalisation, the region's average download speed ranks third lowest nationally, while the Meta Social Connectedness Index is also weak, about 90% below the EU median and ranking second lowest in the country. In transportation, road density is 61% below the EU average and rail access is limited. However, cycleway density performs well, ranking fifth nationally.
Natural environment
Kymenlaakso demonstrates strong performance in renewable energy but faces significant challenges in natural capital sustainability. The region achieves 100% renewable electricity generation, well above the EU average. However, greenhouse gas emissions from transport are high, ranking third nationally. In natural capital, while the tree cover rate is above the EU average, it has declined over time, contrasting with the EU trend. Additionally, the share of protected areas is notably low, ranking in the bottom 3% of EU regions and among the lowest nationally, while the region does still boast important sites such as the Repovesi National Park.
Regional development priorities
Kymenlaakso's regional planning employs scenario-based approaches, though pre-war strategies did not anticipate potential risks related to Russia, instead assuming continued open border operations. The region has faced multiple challenges, including major industrial plant closures and additional pressures42 from Russia's invasion of Ukraine, leading to its designation as a region of sudden structural change by the national government.
The Regional Council has demonstrated adaptability by updating its development plan and scenarios during 2022 to reflect the radically changed operating environment. This includes the development of the " South East Package", a comprehensive set of proposals to the national government addressing regional support needs in the new geopolitical context (Box 5.14). The package focuses on strengthening the regional economy, infrastructure development, labour market support, and investment promotion.
The “South East Package” (in Finnish Kaakon Paketti), introduced by the Regional Council of Kymenlaakso in June 2022, is a strategic proposal designed to address the economic and social challenges faced by Eastern Finland due to the disruption of cross-border interactions with Russia. The initiative outlines key measures to enhance the region’s resilience and support its long-term adaptation to the shifting geopolitical landscape.
Focus areas:
Strengthening the regional economy: The package proposes targeted support for industries impacted by the loss of Russian trade, with a strong emphasis on export diversification and fostering innovation to open up new market opportunities.
Infrastructure development: Investment in upgrading transport and logistics networks, including rail and road links, is prioritised to improve domestic connectivity and strengthen access to EU markets, ensuring Eastern Finland remains competitive.
Labour market support: Programmes aim to attract skilled workers, address labour shortages, and develop local expertise through tailored education and training initiatives, ensuring a robust and adaptable workforce for the region.
Cross-border co‑operation: Despite geopolitical disruptions, the “South East Package” advocates for strengthening EU programmes such as Interreg to maintain economic and cultural ties with neighbouring regions, preserving cross-border collaboration.
Investment promotion: Efforts focus on attracting new businesses and investors by leveraging the region’s strategic location and its existing infrastructure, positioning Eastern Finland as an appealing destination for investment.
Conclusion:
The “South East Package” reflects a comprehensive and forward-thinking approach to ensuring the economic viability and social stability of Eastern Finland. By addressing both immediate recovery needs and long-term structural development, the initiative has become a model of proactive regional advocacy in Finland's evolving geopolitical context. Through strategic investments in infrastructure, innovation, and workforce development, the “South East Package” offers a blueprint for resilience and sustainable growth in a rapidly changing world.
Source: Regional Council of Kymenlaakso (2022), Kaakon Paketti: Regional Advocacy for Kymenlaakso, Retrieved from https://www.kymenlaakso.fi/images/Liitteet/EDUNVALVONTA/Kaakon_paketti_diat_5722.pdf.
Regional policy strategy
Strategic planning and adaptation
The closure of the Russian border has necessitated comprehensive strategic revisions, with the region facing the loss of an important energy source, raw materials supplier, market, and logistical partner. Kymenlaakso has responded by intensifying efforts to develop alternative international market relationships, particularly in the Baltics, while exploring opportunities arising from Finland's NATO membership.
The region's updated scenarios43 acknowledge emerging global challenges, including food security concerns and rising energy costs. These changes have accelerated the green transition agenda, creating new opportunities in energy production and storage. A significant portion of regional development funding has been allocated to developing an internationally competitive battery industry cluster in the Kotka-Hamina area and strengthening the food industry ecosystem in the Kouvola area.
Human capital and labour force development
Kymenlaakso faces widespread skill shortages across industries, exacerbated by low educational attainment levels and the absence of a full-fledged university. However, South-Eastern Finland University of Applied Sciences (XAMK) plays an important role in education, research, development, and innovation (RDI) in the region. The region prioritises education sector development through partnerships with external educational institutions and advocates for establishing a university centre in the region and a bio-food technology laboratory in Kouvola to support and strengthen the food industry ecosystem. The integration of immigrants into the regional workforce remains a key strategy for addressing labour shortages.
The region has implemented targeted training programmes and international recruitment efforts, supported by language training and cultural orientation initiatives. The planned establishment of new educational facilities and programmes aims to attract international students and workers while strengthening the region's innovation capacity through closer academia-industry collaboration (Box 5.15).
Bio- and Food Technology Laboratory (2023–2025)
Funded by the Sudden Structural Change Fund (Ministry of Economic Affairs and Employment) with a total budget of EUR 0.8 million, this project includes both development and investment measures.
The objective is to establish a cutting-edge bio- and food technology laboratory in Kouvola, fostering a university-led innovation ecosystem to support research, development, and innovation (RDI) activities while cultivating a skilled workforce for regional industries.
Key Actions:
Facility renovation: Creating a state-of-the-art laboratory focused on bioeconomy and food technology.
Sustainable food research: Facilitating research into sustainable food systems to address global challenges and support local businesses.
Collaboration networks: Building strong partnerships between LUT University, local companies, and national institutions to drive innovation-led growth.
The laboratory has strengthened Kouvola’s regional competitiveness, attracted skilled professionals, and fostered long-term co‑operation between academia and industry. It provides a solid foundation for sustainable innovations in food technology.
City of Kouvola’s Support for Education and Industry Integration (2022–2024)
The City of Kouvola has allocated EUR 0.9 million over three years to initiatives that align education with the needs of the regional economy, particularly in food technology, logistics, and innovation.
Key Actions:
New programmes: Financial support for three new programmes developed by LUT University and Xamk (South-Eastern Finland University of Applied Sciences) focusing on:
Advancements in food technology
Innovations in logistics
Sustainable practices for future industries
Educational-industry integration: Aligning higher education curricula with the requirements of local industries to produce job-ready graduates.
University-business collaboration: Strengthening partnerships between universities and local businesses to enhance the regional labour market.
The initiative aims to address workforce shortages, retain young talent, and improve Kouvola’s ability to meet industry demands. By fostering educational excellence and creating direct links between education and industry, these measures establish a sustainable talent pipeline that supports the region's long-term economic growth.
Source: South-Eastern Finland University of Applied Sciences (Xamk), KEKE – Sustainable Development Leap for the Food Sector in Kymenlaakso, Accessed January 22.1.2025, https://www.xamk.fi/hanke/keke-kymenlaakson-elintarvikesektorin-kestava-kehitysloikka/; City of Kouvola (2024), Popular Top Degrees Improve Kouvola's Position as an Education City, https://www.kouvola.fi/ajankohtaiset/suositut-huippututkinnot-parantavat-kouvolan-asemaa-koulutuskaupunkina/
Infrastructure and connectivity
Russia’s war of aggression against Ukraine has elevated the importance of Kymenlaakso's transport infrastructure, particularly the port of Hamina-Kotka, for national security of supply and export logistics. The region prioritises several key infrastructure projects, including the development of Road 15 (Kotka‑Kouvola-Mikkeli) and the Kouvola-Kotka/Hamina rail connection. Similarly, the development of the region's connections to the west, including Road 12 (Lahti-Kouvola) and Road 6 (Keltti-Kouvola), has significant effects. Digital connectivity and cybersecurity enhancement remain crucial priorities. An innovative development includes the Helsinki East Aerodrome in Pyhtää, focusing on digital airport concepts, digital air traffic control, and electric flying, with particular relevance for security and defence applications44. The region is also establishing a Logistics Centre of Excellence to integrate logistics expertise with modern security considerations (Box 5.16).
The Logistics Centre of Excellence, spearheaded by South-Eastern Finland University of Applied Sciences (Xamk) and funded by the Regional Council of Kymenlaakso, , aims to address the challenges of critical infrastructure, security, and resilience in Finland. By integrating logistics expertise with modern security considerations, the initiative focuses on cross-sector collaboration to enhance preparedness and competitiveness in the face of geopolitical uncertainties.
Key actions and features:
The Centre starts operations in 2025, following a planning phase funded by Xamk and the Kymenlaakso Regional Council.
Encompassing 75 identified tasks, including research on supply chain security, simulation‑based training, and exercises for national and international stakeholders.
Leveraging advanced technologies such as simulation-based training, AI-driven analysis, and gamification techniques to deliver state-of-the-art logistics solutions.
Establishing a collaborative network of over 30 partners, including universities, government authorities, and private sector organisations, to ensure broad expertise and resource sharing.
The role of City of Kotka, City of Kouvola and Kymenlaakso Region:
Kymenlaakso’s robust logistics infrastructure and its established track record in maritime and cybersecurity research make it an ideal hub for the Centre.
A key focus on enhancing societal resilience and supply chain security by offering innovative solutions for government, businesses, and international partners.
Vision and impact:
The Centre of Excellence aims to position Kymenlaakso as a global leader in logistics and security innovation. It will provide critical expertise to both national and international stakeholders, including potential NATO collaborations, while fostering a robust foundation for societal and economic resilience.
This initiative is set to play a transformative role in reinforcing Finland’s infrastructure, improving global supply chain security, and addressing the growing challenges posed by an increasingly uncertain geopolitical landscape.
Source: Kaakkois-Suomen Ammattikorkeakoulu (2025), Kymi LOGCOE preparation, https://www.xamk.fi/en/project/eng-kymen-logcoe-valmistelu/.
Environmental sustainability
Kymenlaakso has set an ambitious target to reduce its carbon footprint by 80% by 2030, as detailed in its regional roadmap towards carbon neutrality45. The region stands as Finland's first to develop a regional climate change adaptation plan, demonstrating leadership in environmental sustainability. Active initiatives include promoting hydrogen economy development and solar energy expansion, though national defence requirements constrain significant wind energy development.
Multi-level governance and capacity-building
With the loss of Russian co‑operation opportunities, Kymenlaakso has intensified efforts to develop new international connections, particularly through EU-funded programmes. The region maintains active membership in the Conference of Peripheral Maritime Regions and the Advisory Board of Southern Finland, while participating in numerous international EU-funded projects.
The region has secured critical funding through various EU mechanisms, including an increased ERDF allocation for 2024-2027 and support from the Just Transition Fund for economic diversification. The increased allocation for 2024–2027 follows a decision made by the Structural Funds Monitoring Committee in November 2024 to extend ERDF eligibility for small-scale transport infrastructure projects in Kymenlaakso and South Karelia. The decision is conditional on a national commitment to increase ERDF allocation in the regions and requires also a formal proposal to the European Commission by March 2025. Enhanced co‑operation with neighbouring regions, particularly South Karelia, has strengthened advocacy efforts at national and EU levels, ensuring the region's unique challenges are considered in policy-making processes.
Economic diversification is essential for the resilience of Finland’s eastern and southeastern border regions. Following the collapse of trade and tourism with Russia, these regions are adapting by shifting away from industries reliant on cross-border commerce. Current strategies focus on renewable energy, sustainable tourism, and technology-driven industries. However, achieving meaningful diversification requires targeted investment, enhanced support for SMEs, and improved access to capital. Workforce development must also align with emerging sectors to ensure long-term economic transformation.
Infrastructure investments are critical to strengthening connectivity and supporting economic renewal. With traditional transport corridors through Russia no longer viable, border regions must prioritise alternative transport links. Expanding and strengthening existing road, rail, and port infrastructure will improve regional integration, while modernising the energy grid will enable the growth of renewable energy industries, creating new economic opportunities.
Labour market challenges highlight the need for workforce retention and skills development. A declining working-age population and youth outmigration pose serious threats to economic sustainability in the border regions. Addressing these challenges requires efforts to attract domestic and foreign talent, expand vocational training, and strengthen education-to-industry pathways. Additionally, policy measures should focus on retaining skilled workers by offering employment incentives and improving settlement conditions in these areas.
Security concerns are reshaping the strategic importance of the eastern border regions. Finland’s NATO membership has elevated these regions’ role in national defence, leading to increased military and dual-use investments, as well as reinforced border security. In this new geopolitical context, regional development strategies must strike a balance between security priorities and economic growth, ensuring that long-term stability and prosperity go hand in hand.
Trade reorientation is essential for businesses affected by the loss of Russian markets. With Russia no longer a viable trading partner, businesses in the eastern border regions must explore alternative export markets within the EU and globally. To support this transition, government-led trade promotion, incentives for internationalisation, and financial support for market expansion will be crucial in helping businesses remain competitive.
Regional co‑operation and multi-level governance are key to ensuring effective transition strategies. Successful economic transformation requires close collaboration between municipal, regional, and national authorities. Strengthened co‑ordination will facilitate the efficient allocation of EU and national funding, ensuring that resources are directed towards initiatives that support long-term regional development.
Strategic planning must integrate resilience-building to secure long-term sustainability. The evolving economic and security landscape of the eastern and southeastern border regions necessitates a comprehensive approach that incorporates economic diversification, infrastructure development, workforce strategies, and security considerations. Flexible funding mechanisms and forward-looking policies will be essential to fostering economic resilience and ensuring sustained growth in the region.
Reference
[1] Huttunen, R. et al. (2024), Itäisen Suomen tuulivoimarakentamisen työryhmän loppuraportti, https://urn.fi/URN:ISBN:978-952-327-566-9.
← 1. The 433 OECD large (TL2) regions represent the first administrative tier of subnational governments (e.g. Ontario Province, Canada). The 2 414 OECD small (TL3) regions correspond to administrative regions, with the exception of Australia, Canada, Latvia and the United States.
← 2. Lapin liitto (2024). Ohjeita rahoituksen hakemiseen: AKKE ja AIKE -rahoitukset. https://www.lapinliitto.fi/rahoitus/maakuntien-omaehtoisen-kehittamisen-rahoitus-akke/ohjeita-rahoituksen-hakemiseen/
← 3. Lapin liitto (2024). Lapin tilanne- ja kehityskuva 2030. https://www.lapinliitto.fi/wp-content/uploads/2024/04/Tilannekuva-30.01.2024.pptx
← 4. Lapin liitto (2024). Lapin liikennestrategia. Raporttiluonnos syyskuu 2024. https://www.lapinliitto.fi/wp-content/uploads/2024/10/Lapin-liikennestrategia-LUONNOS-09_24.pdf
← 5. Military Mobility Fund is a part of the European Union's (EU) funding program known as the Connecting Europe Facility (CEF), designed to enhance military mobility in Europe.
← 6. Lapin liitto (2021), Lapin Green Deal, https://www.lapinliitto.fi/wp-content/uploads/2021/09/VALMIS_Lapin-Green-Deal-tiekartta_290921.pdf.
← 7. FCG (2022), Lapin tuulivoimaselvitys 2022, https://www.lapinliitto.fi/wp-content/uploads/2022/12/Lapin-tuulivoimaselvitys-2022_raportti_05122022-1.pdf.
← 8. Lapin liitto (2024), Lapin aurinko- ja tuulivoimaselvitys 2023–2024, https://www.lapinliitto.fi/aluesuunnittelu/lapin-tuulivoimaselvitys-2023-2024/.
← 9. Lapin liitto (2024), Aluesuunnittelun selvitykset, https://www.lapinliitto.fi/aluesuunnittelu/aluesuunnittelun-selvitykset/.
← 10. Pohjois-Pohjanmaan liitto (2023), Pohjois-Pohjanmaan liiton talous- ja toimintasuunnitelma 2024–2026, https://www.pohjois-pohjanmaa.fi/wp-content/uploads/2024/01/TTS-2024-2026-hyvaksytty.pdf
← 11. Pohjois-Pohjanmaan liitto (2020), Pohjois-Pohjanmaan liiton strategia 2020–2024, https://pohjois-pohjanmaa.fi/wp-content/uploads/2020/09/Pohjois-Pohjanmaan-liiton-strategia-2020-2024.pdf.
← 12. Ibid.
← 13. Pohjois-Pohjanmaan liitto (2023), Pohjois-Pohjanmaan tavoiteltava aluerakenne 2050, https://www.pohjois-pohjanmaa.fi/wp-content/uploads/2024/04/Pohjois-Pohjanmaan-tavoiteltava-aluerakenne-2050_lopullinen-1.pdf.
← 14. Pohjois-Pohjanmaan liitto (2024), Päivitetty Pohjois-Pohjanmaan ilmastotiekartta, https://www.pohjois-pohjanmaa.fi/wp-content/uploads/2024/08/Pohjois-Pohjanmaan-ilmastotiekartta-2021_2030-paivitys-elokuussa-2024.pdf.
← 15. https://kamk.fi/en/cooperate-with-kamk/research-and-development/projects/the-defence-industry-testing-centre-to-vuosanka/
← 16. Kainuun liitto (2021), Kainuu-ohjelma, https://kainuunliitto.fi/assets/uploads/2022/11/Kainuu-ohjelma-web-final.pdf; Kainuun liitto (2021), Kainuun Venäjä -strategia 2021-2027, https://kainuunliitto.fi/assets/uploads/2021/06/Venajastrategia_hyvaksytty_mkh_14.6.2021.pdf.
← 17. Kainuun liitto (2024), Kainuun matkailustrategia 2024-2028, https://kainuunliitto.fi/assets/uploads/2024/08/Kainuun-matkailustrategia-web-rc3-240820_web_Final.pdf.
← 18. Kainuun liitto (2023, Kainuun maakuntaohjelman toimeenpanosuunnitelma, https://kainuunliitto.fi/assets/uploads/2023/01/TOPSU-2022-2023-paivitetty-11012023.pdf.
← 19. Kainuun liitto (2019), Kainuun tuulivoima-maakuntakaava,
https://kainuunliitto.fi/assets/uploads/2020/09/kainuu_tuulivoimamaakuntakaava_web.pdf.
← 20. Kainuun liitto (2025), Kainuun valmiusfoorumi, https://kainuunliitto.fi/yhteistyo/kainuun-valmiusfoorumi/.
← 21. Pohjois-Savon liitto (2021), Pohjois-Savon maakuntasuunnitelma 2040 ja maakuntaohjelma 2022–2025,
← 22. Pohjois-Savon liitto (2022), Pohjois-Savon maakuntaohjelman toimeenpanosuunnitelma 2023–2024, https://www.pohjois-savo.fi/media/2-aluekehitys-ja-ohjelmatyo/maakuntaohjelman-toimeenpanosuunnitelma/toimeenpanosuunnitelma2324_web.pdf.
← 23. UEF (2025), Talent hub Eastern Finland, https://uefconnect.uef.fi/en/talent-hub-eastern-finland/; Pohjois-Savon liitto (2023), Itä-Suomi tahtoo pitää kiinni kansainvälisistä osaajista, https://www.pohjois-savo.fi/viestinta/uutiset/2023/08/ita-suomi-tahtoo-pitaa-kiinni-kansainvalisista-osaajista.html.
← 24. Pohjois-Savon liitto (2025), Tuulivoima, https://www.pohjois-savo.fi/maakuntakaavat-ja-liikenne/voimassa-olevat-maakuntakaavat/tuulivoima.html.
← 25. Pohjois-Savon liitto (2024), Suomen biotalousstrategian toimeenpano Pohjois-Savossa 2024–2035, https://www.pohjois-savo.fi/media/2-aluekehitys-ja-ohjelmatyo/biotalous/biotalousstrategiantoimeenpanops.pdf.
← 26. Hiilineutraali Pohjois-Savo (2025), Ilmastotiekartta, https://hiilineutraalipohjoissavo.fi/ilmastotyo/ilmastotiekartta/.
← 27. Pohjois-Savon liitto (2025), Kokonaisturvallisuuden klusteri, https://www.pohjois-savo.fi/aluekehitys-ja-ohjelmatyo/kokonaisturvallisuuden-klusteri.html.
← 28. For more recent labour market figures for Finland the Ministry of Economic Affairs and Employment publishes Regional Averages, made available here: https://tem.fi/en/regional-annual-averages
← 29. Pohjois-Karjalan maakuntaliitto (2020), Pohjois-Karjalan strategia 2040, https://pohjois-karjala.fi/wp-content/uploads/2022/03/Pohjois-Karjalan-strategia-2040.pdf; Pohjois-Karjalan maakuntaliitto (2021), Pohjois-Karjalan maakuntaohjelma 2022–2025, https://pohjois-karjala.fi/pokat2025/202-pokat-2025-pohjois-karjalan-maakuntaohjelma-2022-2025/.
← 30. Pohjois-Karjalan maakuntaliitto (2023), Maakuntaohjelman toimeenpanosuunnitelma 2024–2025, https://pohjois-karjala.fi/pokat-2025-maakuntaohjelman-toimeenpanosuunnitelma-2024-2025/.
← 31. Interreg Europe (2023), European regions promoting renewable energy self-sufficiency, https://www.interregeurope.eu/express.
← 32. Pohjois-Karjalan maakuntaliitto (2024), Vaikuttamisenkärjet 2025, https://pohjois-karjala.fi/wp-content/uploads/2024/04/Vaikuttamisen-karjet-2025.pdf.
← 33. The Eastern Finland Coordination Group represents South Karelia, South Savo, Kainuu, North Karelia, and North Savo, working to enhance the region’s vitality and competitiveness both nationally and internationally. Its key priorities include transport infrastructure, energy, accessibility, and broadband development. The Eastern and Northern Finland Coordination Group extends to Northern Ostrobothnia, Central Ostrobothnia, and Lapland, focusing on advocacy, EU programme influence, and regional development. It meets twice a year and holds an annual summit to align on shared goals and projects. Both groups collaborate closely, including with regional MEPs, and share an EU office in Brussels to promote regional interests. Their mission is to ensure equal development opportunities for Eastern and Northern Finland, particularly in the face of geopolitical and security challenges.
← 34. Etelä-Karjalan liitto (2024), Etelä-Karjalan maakuntaohjelma 2022–2025, https://liitto.ekarjala.fi/wp-content/uploads/2024/01/MAAKUNTAOHJELMA_screen.pdf.
← 35. Etelä-Karjalan liitto (2024), Etelä-Karjalan liikennestrategia 2040, https://liitto.ekarjala.fi/wp-content/uploads/2024/09/Etela-Karjalan-liikennestrategia.pdf.
← 36. The Government’s programme for Eastern Finland proposes funding for this.
← 37. Hiilineutraali Suomi (2025), Hinku-maakunnat, https://www.hiilineutraalisuomi.fi/fi-FI/Hinku/Hinkumaakunnat.
← 38. Suomen vetylaakso ry (2025), Homepages, https://suomenvetylaakso.fi/.
← 39. Etelä-Savon maakuntaliitto & MDI (2023), Etelä-Savon TKI tiekartta 2030, https://www.esavo.fi/resources/public//Tietoa-Etela-Savosta/Aineistot_medialle/2023/Etela_Savon_TKI-tiekartta.pdf.
← 40. Etelä-Savon maakuntaliitto (2023), Maakuntaohjelman toimeenpanosuunnitelma 2023–2024 ja edunvalvonnan painopisteet, https://dynasty.sulkava.fi/kokous/2023171-5-4997.PDF.
← 41. Etelä-Savon maakuntaliitto (2024), AIKO ja MOKRA-rahoitukset, https://www.esavo.fi/aiko-ja-mokra-rahoitukset.
← 42. Such as loss of logistics-based jobs.
← 43. Kymenlaakson liitto (2022), Ukrainan sodan vaikutukset Kymenlaaksoon, https://www.kymenlaakso.fi/images/Liitteet/ALUEKEHITYS/Ukrainan_sodan_vaikutukset_Kymenlaaksoon_-_Lopullinen_raporttix.pdf.
← 44. Kotka-Hamina region (2024), Helsinki East Airport, https://www.businesskotkahamina.fi/en/front-page/karkitoimialat-of-the-region/industry/industrial-parks/helsinki-east-aerodrome/.
← 45. Kymenlaakson liitto (2023), Hiilineutraali Kymenlaakso -tiekartan päivitys, https://www.kymenlaakso.fi/images/Liitteet/ALUEKEHITYS/Hiilineutraali2040/Hiilineutraali_Kymenlaakso_-tiekartta_FINAL.pdf.