EIMIN: Main Accomplishments of the Ministry in 2024
Although the recent period has been turbulent for the Lithuanian economy, the Ministry of the Economy and Innovation (EIMIN) managed to achieve this year’s goals — helping businesses grow, attracting major players to Lithuania, and taking significant steps to strengthen the defence and security industry.
“Lithuania’s economy remains resilient thanks to our efforts. In the first half of this year alone, we attracted 22 projects from foreign investors, including 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. Moreover, we estimate that the salaries paid by multinational companies attracted to Lithuania and operating in the regions alone are 51% higher. Seeing the results, we will continue to work hard,” says Aušrinė Armonaitė, Minister of the Economy and Innovation.
The foreign direct investment projects attracted in the first half of this year will contribute to the creation of more than 1,200 jobs and investments worth EUR 239 million. According to A. Armonaitė, negotiations are underway with several dozen other potential investors.
In addition, EIMIN has signed 7 major investment project contracts this year, which will create more than 1,400 jobs and attract EUR 840.1 million in investments. In total, EIMIN has already signed 17 major investment project contracts since the launch of the green corridor initiative in 2021. Together, they will create more than 4,600 jobs and attract more than EUR 1.49 billion in investment.
The country’s regions have been a particular focus, with EUR 376.6 million of funding allocated to them. Investment in the attractiveness of Lithuania’s regions includes EUR 5 million for the construction and management of regional roads and EUR 10.3 million for infrastructure improvements. In total, more than EUR 76.34 million has been allocated to roads and infrastructure in the regions over four years.
Plug and Play, one of the world’s best-known accelerators from the US, which was attracted to Lithuania last year, has already implemented one acceleration cycle this year, at the end of which 11 start-ups had the opportunity to present their innovative products to potential investors. A second acceleration cycle is currently underway with 12 participating start-ups. The call for applications for the third cycle is open until the 1st of November. Plug and Play will invest EUR 5.9 million in at least 45 start-ups over three years.
Calls for applications for specialised start-up accelerator programmes will be launched this autumn. Lithuania has signed agreements with 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 start-ups will receive grants worth EUR 60,000 upon successful completion of the accelerator programme.
Another important achievement is Lithuania’s entry into the prestigious MICHELIN Guide club. Four restaurants in the country have been awarded a MICHELIN star and 26 restaurants are mentioned in the prestigious Michelin Guide.
Following the implementation of the EUR 1 billion plan to boost the country’s economy in 2023, this year EIMIN has provided more than EUR 226.3 million in additional funding to companies and institutions that applied for instruments. More than EUR 297.9 million has been made available this year to finance companies through various financial instruments (loans, venture capital). New financial instruments are planned for 2024, with a budget of EUR 91.48 million.
Major accomplishments include the launch of the Billion for Business loan facility this year. It provides up to EUR 850 million in loans for business projects investing in environmentally friendly technologies and developing production capacity for high value-added products. An additional EUR 250 million is earmarked for defence and security companies to stimulate growth in the defence industry.
EIMIN continues to pay particular attention to cutting red tape. And the results are already noticeable, with EUR 1.89 million in reduced regulatory burdens on business in the first half of this year. The digitalised small and medium enterprise (SME) declaration tool, launched this year, will also help speed up the process by allowing SMEs to complete their declaration in just a few minutes.
The country’s security is also being actively enhanced, with the signing of a Defence and Security Industry Action Plan worth almost EUR 37 million. According to A. Armonaitė, this plan will help to make better use of the potential of Lithuania’s defence and security industry, which has become even more important in the wake of the Russian-led war in Ukraine.
Amendments to legislation relevant to Lithuania’s defence and security industry have also been initiated to remove excessive requirements for the development of this sector and to avoid dependence on foreign suppliers by reducing restrictions on armament production.
In addition, an EIMIN initiative has simplified spatial planning, land plot creation and construction procedures for major projects for urgent national security and defence needs, shortening them to half a year. Restrictions on defence-related business activities in Lithuania’s free economic zones have also been lifted.
The defence innovation ecosystem is being actively strengthened as well, with the establishment last year of the EUR 13.5 million venture capital fund MILInvest, and EUR 1.7 million invested this year in six companies. They aim to develop laser technologies and mine detection technologies, design and manufacture drones, unmanned aerial vehicles, and intelligence systems or create other solutions that will contribute to the development of the country’s defence and security.
This year, Lithuania also joined NATO’s Defence Innovation Accelerator DIANA programme. It helps to foster leaders in the development of defence innovations as the Lithuanian space start-up Astrolight has already entered the second phase of NATO’s DIANA. The company was selected as one of NATO’s top 10 innovators and will receive an investment of up to EUR 300,000.
To promote sustainability, a new circularity initiative has been launched in the public sector and legislative amendments have been submitted to the Ministry of Finance for consideration that would prevent the destruction of public assets that are deemed redundant but still fit for use. The amendments would allow such assets to be reused after being transferred to special sharing stations.
EIMIN is working to ensure that Lithuanian business and science are actively involved in the growth of the space sector. It is estimated that Lithuania is already involved in as many as 30 European Space Agency (ESA) projects, which have already generated investments of more than EUR 5 million for Lithuanian companies.
The network of commercial attachés around the world is being actively expanded and currently consists of a team of 22 people. This year, a new commercial attaché position was established in Italy and an attaché in Munich began their work.
In addition, InnoHUB Lithuania was opened in Silicon Valley, USA, to help Lithuanian innovative companies and developers of advanced technologies to establish and develop contacts with partners in the US, and to help Lithuanian exporters of high-tech products and services to enter the strategically important US market.
Last updated: 09-10-2024
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