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    <article-meta>
      <title-group>
        <article-title>Lahti Software City: Evidence of Regional Development in IT &amp; Software Industry</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Damian Kedziora</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Roosa Pipatti</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Sonja Hyrynsalmi</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>LUT University</institution>
          ,
          <addr-line>Mukkulankatu 19, 15210 Lahti</addr-line>
          ,
          <country country="FI">Finland</country>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2023</year>
      </pub-date>
      <fpage>27</fpage>
      <lpage>29</lpage>
      <abstract>
        <p>The IT &amp; Software industry in Finnish region of Päijät-Häme has experienced significant recent growth, driven by the modernization of traditional sectors through the adoption of top modern technology. Our research, based on surveys, interviews, and public data analysis, discusses the current state of the industry in the district of Lahti. With a rising number of software engineering graduates, the region has the potential of becoming a major hub for new IT professionals. Educational institutions offer diverse expertise paths, aligning with industry needs and regional tech advancement. Challenges include technical expertise, skills training, business understanding, resource availability, team dynamics, and leadership. Support is crucial for operating model enhancement, technology networking, value chain creation, and collaborative research funding. Priorities include promoting gender equality and encouraging more women in IT careers. Cooperative projects, key player involvement, marketing the region's IT strategy, and fostering digitalization are essential for sustainable growth.</p>
      </abstract>
      <kwd-group>
        <kwd>eol&gt;Lahti</kwd>
        <kwd>Päijät-Häme</kwd>
        <kwd>Region</kwd>
        <kwd>Industry</kwd>
        <kwd>Growth</kwd>
        <kwd>Education</kwd>
        <kwd>IT</kwd>
        <kwd>Software 1</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <p>of Lahti region, getting solicited from the Finnish Trade Register based on classification codes.
We chose and quoted the latest available data on each category. In addition, we conducted a few
qualitative interviews with leaders from the companies in the region who wished to participate
in our research discussions. The data got interpreted by the project group with consensus. Our
secondary data analysed included compounded sources from the Finnish Statistics Office,
Education Statistics Finland, Company Trade Register, Finnish Tax Office. Regarding the approach
to data analysis, both quantitative and qualitative methods were applied.</p>
    </sec>
    <sec id="sec-2">
      <title>2. IT &amp; Software Community in Lahti</title>
      <p>
        The IT community in Lahti region is diverse, including small start-ups focused on IT services
to mid-sized companies specializing in IT and tech solutions. Additionally, there are IT experts
employed in companies with different core business areas, where IT constitutes just one element
of their operations. In terms of company size, most participants in the study were associated with
small and medium-sized companies. Larger companies with more than 50 employees were less
represented. The study revealed that most of respondents worked in organizations where IT was
the primary focus, indicating a significant emphasis on IT-related activities. However, some
participants were part of companies with different core business orientations. The region
contains a workforce of over 1,000 IT professionals and more than 500 IT technicians [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ].
However, there is a gender imbalance, with most IT professionals and technicians being males.
As found in our survey, experts in the region possess a wide range of competencies and work with
a diverse set of tools and technologies. Notable technologies include MS Azure, .Net, JavaScript,
React, WordPress, Python, C#, Linux, and PHP. These are widely adopted and have a strong
reputation for quality, efficiency, and security of solutions. IT community in Lahti region is
gaining recognition for its capabilities, challenging the stereotype that expertise is concentrated
in the capital area of Helsinki. They compete based on cost, quality, and agility in their
implementations, benefiting from lower overhead and office expenses. Hence, the region's IT
professionals and organizations are well-equipped to deliver high-quality IT solutions.
      </p>
    </sec>
    <sec id="sec-3">
      <title>3. Growing IT Region of Lahti</title>
      <p>
        The Finnish IT market is experiencing rapid growth [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ], and Lahti region is strategically
positioned with advantages over neighbouring regions. It offers rich industry and business
traditions, closeness to the capital area, a substantial labour market with many IT professionals,
and a favourable income-to-cost ratio. In terms of key macroeconomic indicators, Päijät-Häme
has a workforce of over 80,000 employees [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ], with the potential to become a significant export
value. While its GDP remains behind neighbouring regions, strategic focus directions can boost
economic growth, especially in the evolving IT sector. Lahti region is strong in terms of taxable
income, reflecting favourable conditions for residents' finances.
      </p>
      <p>As discovered at our research, the top tech trends in the region include focus on education,
digitization, AI, and the growth of the gaming industry. Networking, collaboration, education,
sustainability, and remote work opportunities are considered pivotal for the region's
development. Improvement areas include leveraging local companies' international
competitiveness, enhancing networking and visibility, and fostering talent attraction.
Empowering businesses, promoting digitization, and facilitating access to decision-makers are
identified by our research as crucial steps for supporting the IT business in Lahti district. In
summary, Päijät-Häme's IT community is thriving, offering a competitive edge over neighbouring
regions, and there is a collective drive to enhance the region's IT industry further.</p>
    </sec>
    <sec id="sec-4">
      <title>4. Lahti Software Education</title>
      <p>In Lahti region, a variety of IT education options are available through institutions like LUT
University, LAB University of Applied Sciences, and Salpaus Further Education. These
opportunities provide training to equip students with skills necessary to tackle real-world
challenges in their specific domains. The educational offerings presented below offer an enticing
prospect for both young individuals entering the job market, as well as experienced professionals
seeking to retrain and transition into IT-related careers.</p>
    </sec>
    <sec id="sec-5">
      <title>5. Lahti Software Companies</title>
      <p>
        The IT companies in Lahti region prioritize business expansion, workforce development, and
internationalization. They expressed strong ambition for organic business development and
revenue growth. Organizations have diverse workforce, with a focus on international
communities, and most employees are interns or juniors, reflecting the industry's growth.
Companies operate in a hybrid work model with a shift toward flexibility and remote work. They
prefer to recruit rather than establish new offices in the region. Challenges include talent
acquisition, cybersecurity, market competition, business expansion, and cost management.
Players need support for business model improvement, research collaboration, workforce
development, and guidance for skills and internships. As mentioned by one responder: “We need
stronger building of IT hub, together with institutions like LUT and Ladec that would make it
possible for companies to connect and build the IT future together. We need to constantly challenge
ourselves and try to find our new strategic focus, so that we can have in the future some famous
technological innovation or service that would be the label or specialty of Lahti, and all the
companies can build an ecosystem around it“[
        <xref ref-type="bibr" rid="ref2">2</xref>
        ]. These findings provide insights into the region's
IT community, highlighting challenges and areas companies require support for future success.
      </p>
    </sec>
    <sec id="sec-6">
      <title>6. Conclusions</title>
      <p>As summarized at the below Illustration, our research shed a light at Päijät-Häme region, with
Lahti city being on the path to becoming an IT &amp; Software hub of the future, driven by a growing
number of locally educated IT professionals. It presented strategic opportunities for
development, with potential to uplift the local economy and society. Competitive purchasing
power, expanding IT programs, and a diverse local IT industry make the region promising.
Challenges faced by IT companies include attracting talent due to regional attractiveness and
salary levels, limited client reach, and infrastructure constraints. Geographical location,
reputation, and resource availability also pose obstacles to growth. Gender equality in the IT
community needs attention, and there are recruitment challenges concerning specialized skills
and business acumen. While our study provides practical insights, it has limitations. The findings
are based on a specific subset of companies and may not fully represent the entire industry. A
larger sample and periodic studies could offer a more comprehensive view. Despite these
limitations, the identified support needs among companies emphasize the importance of
technological advancements, collaboration, research, customer insights, talent acquisition, and
development efforts. Community avenues, including startup assistance, educational
collaborations, global marketing, and tailored training programs, are vital for fostering growth in
the IT sector. By addressing challenges and embracing opportunities, Lahti’s IT industry can
contribute to regional growth, economic progress, and overall prosperity.</p>
    </sec>
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