New and future investments in the bioeconomy require increased growth in forest resources. One of the key technologies to achieve this goal is the vegetative propagation of wood seedlings, for which the Savonlinna Research Group of LUKE (Natural Resources Centre) specialises in the international competence level. Luke is working with Xamk to develop a pilot production system to commercialise vegetative propagation technology. A special laboratory for pilot production, technology development and research is planned for this bioeconomy sector in Savonlinna. The project designs and implements a special laboratory with an area of 485.5 m², with a floor area of 547.5 m², for the use of LUKE research team. In addition, the laboratory will test and develop special technology researched and developed by Xamk in the automation of the production system. In Savonlinna Technology Park, the laboratory strengthens the prerequisites and operating environment for cutting-edge forest bioeconomy research. In the longer term, the project strengthens South Savo’s competitive position based on smart specialisation in international forest processing research and increases opportunities for commercialising business and new innovations in the field. The operating environment indirectly enables the production of forest bio-resources by enabling the practical development of new technologies that enhance the growth of wood and business cooperation in order to integrate new methods and know-how in the field of forest bioeconomy. The project will contribute to the creation of new high-skilled jobs and the development of new research services in the field. The project contributes to the growth and sustainable development of forest bioeconomy.