Finland can leverage its strong technological expertise to maintain societal functionality. Smart technologies are deeply integrated into everyday life, influencing solutions in housing, transportation, and healthcare. However, the rapid development of technology is reshaping society in unexpected ways, affecting mobility, work practices, and more. Technology serves as a foundational tool for action, and digitalization is set to transform the service structures of the economy and the product development needs of businesses. The regional strategy is defined by attractiveness and the ability to renew. Päijät-Häme aims to strengthen its regional appeal, which requires both the capability and courage to innovate. The region must attract new businesses and support existing ones by fostering an innovative environment, promoting collaboration with higher education institutions, and developing sustainable and responsible business models to strengthen competitiveness. Additionally, there is a need to enhance international connections and increase investments, areas where LUT/LAB Design Institute has a strong track record. New approaches are needed to enable bold initiatives in internationalization and radical innovation for companies' service and product development projects, as well as in renewing business expertise. To drive growth in economic productivity, problem-solving, and innovation, creative, customer- and user-centric approaches are essential. According to the Research Institute of the Finnish Economy (Etla), the following capabilities are required: Design thinking, which focuses on user-centric problem-solving and innovation, can lead to new services, brands, and digital goods that represent intangible assets. Circular economy design, which emphasizes sustainability and material reuse, can generate new (digital) business models and processes that increase intangible value. Digital design, which utilizes digital tools and technologies to develop creative solutions, can result in digital innovations such as software, applications, and online services. The VALTO project focuses on developing these capabilities, thereby concretizing Päijät-Häme's regional strategy and its smart specialization priorities by advancing industrial innovation and product development. The project aims to support companies in developing new incremental and radical innovations related to products, services, or business models. These design-driven experiments in product development will strengthen the expertise of Päijät-Häme companies and create new collaboration models between businesses and academic actors. They will also enable the sharing of experiences and operational models for use in the broader economy. The VALTO project is implemented by the Radical Innovation Laboratory at LAB University of Applied Sciences' Design Institute. Through this initiative, the project seeks to enhance the region's innovation ecosystem, foster sustainable growth, and position Päijät-Häme as a hub for cutting-edge industrial and digital innovation.
