A. Armonaitė on the work of this term: attracting global investment and creating jobs
Counting down the final days of her four-year term in office, Minister of the Economy and Innovation Aušrinė Armonaitė says that in recent years our country's businesses have had more opportunities than ever before to create, expand and strengthen their operations.
"This has been a difficult period, but we have managed to implement all our plans. This has enabled our businesses to adapt to change and grow successfully. One of the key achievements has been the implementation of the €1 billion plan, which has helped the businesses to innovate, digitise their operations and accelerate their greening efforts. We are already seeing the results of this investment.
We have also made significant efforts to improve the business environment. As a result, we have attracted nearly 200 projects from foreign investors, which will create more than 15,000 jobs and attract €755 million in investment. The world sees us and knows us - investors are actively choosing Lithuania and helping to realise our potential," said the Minister A. Armonaitė.
Foreign investors attracted to Lithuania in the last four years range from world-renowned defence and security companies to prominent players in the biotechnology sector. Agreements signed this year include the German defence company Rheinmetall, which will open a factory in Lithuania, and Commerzbank, one of Germany's largest banks, which will set up a representative office here.
Other companies that have entered Lithuania include Johnson Matthey, the UK's leader in sustainable technologies, Palantir Technologies, the US software giant, Epam Systems, the US technology giant, and Dexcom, the star of the life sciences sector.
The country has also attracted Alter Domus, one of the world's largest private financial services groups; Accenture, a leader in digital, cloud and security services; Pon.Bike, a global leader in the bicycle industry; and airline Ryanair, which has established an aircraft repair base in the Kaunas district. US fintech unicorn DriveWealth has also opened its first international office in Lithuania, serving the European market.
"Attracting such huge investments is proof that Lithuania is consolidating its position in the international market. It is also a great achievement for the Lithuanian economy. We estimate that salaries paid by international companies operating in the country's regions are 51% higher," says Karolis Žemaitis, Vice-Minister of the Economy and Innovation.
Creating jobs
One of EIMIN's most significant achievements has been the signing of contracts for major investment projects that will open up new opportunities for Lithuania. Since the launch of the Green Corridor 2021 initiative, EIMIN has already signed 17 such contracts, which will create more than 4,600 jobs and attract more than €1.5 billion in investments.
Much attention has also been paid to improving the attractiveness of the country's municipalities, with new strategic roads being built and ongoing infrastructure improvements. In total, more than €76.3 million has been spent on regional roads and infrastructure over 4 years.
In addition, EIMIN has provided more than €463.2 million to 11,700 companies through various financial instruments (loans, guarantees, venture capital investments) to strengthen Lithuanian enterprises.
In addition to stimulating investment and job creation in Lithuania and ensuring that the goals of a climate-neutral economy are met, EU funds will finance more than 1,900 projects in Lithuania between 2021 and 2027, with investments of €483 million.
"These funds focus on innovation and technology, the development of renewable energy and the decarbonisation of industry. This is crucial for a Lithuanian economy that not only wants to grow, but also wants to ensure that this growth is sustainable, climate-friendly and contributes to Europe's green goals," said Iveta Paludnevičiūtė, Chancellor of the Ministry of the Economy and Innovation.
A special focus on security
EIMIN has been active in its efforts to ensure the country's security, with the signing of a Defence and Security Industry Action Plan worth almost €37 million, which will help to further exploit the potential of Lithuania's defence and security industry. Amendments to legislation relevant to Lithuania's defence and security industries have also been initiated, removing redundant requirements and reducing restrictions on arms production to avoid dependence on foreign suppliers.
In addition, the procedures for spatial planning, zoning and construction of large-scale projects to meet urgent national security and defence needs were simplified during the year, reducing them to half a year. Restrictions on business activities in Lithuania's defence-related free economic zones have also been lifted.
"We are also actively strengthening the defence innovation ecosystem, which not only promotes technological breakthroughs, but also enhances the country's defence capabilities and ensures rapid adaptation to constantly changing situations. MILInvest, a €13.5 million venture capital fund launched last year, has already helped invest €1.7 million in 8 start-ups developing advanced defence technologies ranging from lasers and drones to mine detection technologies," said Erika Kuročkina, Vice-Minister of the Economy and Innovation.
To strengthen inter-institutional cooperation, the Innovation Agency, the Lithuanian Armed Forces and the Defence Resources Agency signed a Memorandum of Understanding on the Development of Defence Innovation. As part of the agreement, the Innovation Agency implemented the "Defence Innovation Vouchers" instrument, which aims to provide companies with research and experimental development (R&D) services to address challenges relevant to the armed forces.
This year, Lithuania also joined the NATO Defence Innovation Accelerator (DIANA) programme. According to the Vice-minister, this helps to cultivate leaders in defence innovation - Lithuanian space start-up Astrolight has already entered the second round of NATO DIANA.
Startup ecosystem - one of the leaders in Europe
The number of start-ups has also grown successfully - the Lithuanian start-up ecosystem, with its three unicorns, is currently one of the leading in Europe. More than 1,000 start-ups worth €13.7 billion are already operating in the country, attracting more than €292 million in investment last year.
In addition, Plug and Play, one of the world's best-known accelerators from the US, has been attracted to Lithuania and has already completed two acceleration cycles this year. It is estimated that Plug and Play will invest €5.9 million in at least 45 start-ups over three years.
Lithuania has also signed agreements with other well-known international accelerators: xEdu in the EdTech sector and Game BCN and Peninsula in the GameTech sector. These accelerators will provide direct support to at least 60 start-ups in the form of consulting, training and other services. In addition, the startups will receive grants worth €60,000 upon successful completion of the accelerator programme.
"Our efforts have also enabled Lithuanian business and science to participate in the growth of the space sector. Lithuania is already involved in 30 European Space Agency projects, which have attracted more than €5 million of investment. I have no doubt that this sector will become even more important in the future," said Neringa Morozaitė-Rasmussen, Vice- Minister of the Economy and Innovation.
Life sciences and biotechnology start-ups are also thriving and growing. According to EIMIN, there are currently 33 start-ups registered in the Lithuanian start-up database in the agri-food sector, with a wide range of companies working in innovative ways to promote the development of sustainable food systems.
"These companies are already creating the food of the future in our country - from fermented mushrooms to alternative proteins. This is important not only to reduce the environmental impact of food production and protect biodiversity, but also to ensure the resilience of food systems. After all, sustainable food is the foundation of a sustainable country," says Ieva Valeškaitė, Vice-Minister of the Economy and Innovation.
As food waste is a particularly acute problem, EIMIN has started to look at regulatory measures to ensure that at least some of the food is saved rather than thrown away. One of these is the possibility for traders in Lithuania to sell safe and wholesome food that has passed its minimum sell-by date for a longer period of time, starting from the beginning of this year.
The innovation reform has also been implemented with the aim of creating a clear and coherent system of incentives for innovation, laying the foundations for the effective development of the innovation ecosystem and enabling the sector to develop internationally. An Innovation Agency was established in 2022 and is estimated to have benefited more than 40,000 clients.
A new €77.7 million mission-based science and innovation programme is also underway, which will not only accelerate the development of innovative services and products, but also help them get from the lab to the end user much faster.
Another important achievement is the opening of InnoHUB Lithuania in Silicon Valley, USA, which helps Lithuanian innovative companies and developers of advanced technologies to connect with partners in the US, and Lithuanian exporters of high-tech products and services to enter the strategically important US market.
From open data to AI innovation
Lithuania has also made significant progress in opening up data and thematic datasets. More than 1,700 datasets from a wide range of institutions, including high-value datasets, are now available on the Lithuanian Open Data Portal. Businesses, start-ups, academia and society can use them to develop innovative products and services.
Digitisation is becoming a key tool for simplifying administrative processes and reducing red tape for businesses. Later this year, EIMIN will launch a digitised Small and Medium Enterprises (SME) declaration tool for the business community, which will help them to complete their SME declaration faster and much easier.
Reducing the regulatory burden is also key to more effective cooperation between government and business. Over the four years of the mandate, a reduction of more than €33 million has been achieved for public authorities.
The transformation of the state's digital resources has also been completed, establishing a qualitatively new governance model in line with modern trends in information technology management. Lithuania's data is stored in both private and public networks.
Important steps have been taken in the field of Artificial Intelligence (AI). Lithuania is already one of the first countries in the EU to launch a pilot AI environment. This space allows Lithuanian technology companies to safely design, test and develop AI solutions before bringing them to market. This year, €15 million in funding has also been allocated to 170 start-ups and spin-offs in the Vilnius region to develop solutions in artificial intelligence, blockchain technology and robotic process automation.
Returning talent and international recognition
To create the best conditions for Lithuanians living abroad to return to Lithuania, the Diaspora Friendly Employer initiative was launched earlier this year. Nearly 40 companies and start-ups from across the country have signed up to help promote a culture of international recruitment in our country. EIMIN is currently implementing 12 measures to strengthen the bond between Lithuanians abroad and Lithuania and encourage them to return to work here.
To ensure a supply of talent for investors, EIMIN has also provided financial incentives worth €2.3 million to highly-skilled foreigners and employers over almost three years, and has distributed more than 1,000 targeted scholarships to students in STEM fields (computer science, engineering, mathematics) to promote the choice of these studies.
In addition, to encourage entrepreneurship among young people and support the long-term potential of Lithuania's talent pool, more than €3.4 million has been invested over the past four years to promote entrepreneurship among students and young people. It is estimated that more than 11,900 young people have participated in programmes. These initiatives, which involve the creation and development of students' business ideas, help to foster critical thinking, creativity, financial literacy and a culture of innovation right from school.
Another important achievement is Lithuania's entry into the prestigious MICHELIN Guide Club. 4 restaurants in the country have been awarded the MICHELIN Star and 26 restaurants have been included in the prestigious Michelin Guide.
Lithuania is also gaining strength in tourism, where it is gaining international recognition. This year, Lonely Planet, one of the world's largest travel guide publishers, ranked Lithuania second among the top 10 must-see countries in the world for 2025 and first in Europe.
The results of the last four years show that Lithuania is ambitiously moving forward and gaining international recognition in a wide range of fields. International rankings confirm this. Minister of the Economy and Innovation A. Armonaitė looks forward to continuing the work started to strengthen Lithuania's image in the world and create new opportunities for the country's businesses and talents.
Last updated: 05-12-2024
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