Today the clothing industry in the EU is struggling against cheap imports from Asian countries. Production escaped to lowcost countries first from Sweden and Finland, and now the same is happening in the other Baltic Sea countries. Ergonomically designed, functional smart clothing and safe products are the competitive advantage in the competition against low priced import when trying to retain and develop business in the Baltic Sea Region (BSR). Latvia and Finland have specific knowhow in smart textiles and their applications in textiles and clothing, whereas Estonia, Latvia, Lithuania and Poland are the main producers in the Baltic Sea area. In these project industrial companies especially SMEs can benefit from the knowhow of modern scanner technology, smart clothing technology and effective supply chain management (i.e. RFID and PDM) of the universities. Transnational networks and knowhow of effective supply chains already exist between the SMEs in the BSR clothing field. However, there are possibilities in mass customization and new innovations, as well as in integrating IT technology in work wear clothing and building even more effective supply chains in the BSR. The objective is to develop the work wear clothing business in BSR, and make it more competitive in order to resist competition from new producers and imports. The supply chain is already transnational among BSR countries in the form of design, markets and subcontracting. The project focuses on mass customization, and the possibility to integrate IT technology in work wear as well as to enhance supply chain management.