Lithuania continues to shine as a global innovation leader, securing a spot among the top 35 countries in the Global Innovation Index (GII) for the second consecutive year. Despite significant economic and geopolitical challenges, Lithuania has met its National Progress Plan target of staying within the top 35 countries, ranking 35th this year, a slight dip from last year’s record 34th place among 132 countries.
Thriving Amidst Global Challenges
Lithuania’s strong performance in the GII is particularly impressive given the difficult international climate. The war against Ukraine, rising interest rates, and economic slowdowns across Europe and the world have created a tough environment for investment. Yet Lithuania has not only managed to weather the storm but has thrived, proving its resilience and commitment to innovation.
Kotryna Tamoševičienė, Head of the Research and Analysis Department at Lithuania’s Innovation Agency, underlined the significance of this achievement:
“A 35th place ranking in the Global Innovation Index is a significant achievement, especially given today’s economic and geopolitical challenges. Although we have reached the goal set in the National Progress Plan for the second year in a row, we cannot afford to relax. Lithuania provides favourable conditions for developing a strong innovation ecosystem that creates high added value, as demonstrated by our high ratings in areas such as unicorn value and technology usage.”
Leading in Unicorn Value and Female Education
For the second year in a row, Lithuania ranks first globally in unicorn value relative to the size of its economy. This success was bolstered in 2023 by the rise of Baltic Classifieds Group as Lithuania’s third unicorn company. The country also holds the top global spot for the proportion of women with higher education in the workforce, a testament to its inclusive and progressive workforce development
A Focus on Digitalisation and Technology
Lithuania’s strong GII performance is supported by key factors, including:
– Entrepreneurship policy and culture (8th place)
– Business environment stability (18th place)
– Regulatory quality (21st place)
– Effective institutions (22nd place)
This success can be attributed in part to significant investments in public sector digitalisation and EU structural fund allocations from the New Generation Lithuania plan. These efforts have enhanced public service efficiency and strengthened the country’s innovative capacity.
Lithuania also excels in labour market indicators, with 47% of its workforce employed in knowledge-intensive sectors, ranking 22nd in this category.
Major Progress in Key Areas
Lithuania has made noteworthy progress in several areas over the past year:
– Information and communication technology (ICT) usage : Lithuania jumped from 22nd to 4th place globally, highlighting its rapid digital transformation.
– Investment as a percentage of GDP: Lithuania rose from 103rd to 67th place, reflecting increased public investment and EU funding.
– Infrastructure: Improved by five positions, moving up to 38th place.
According to Kotryna Tamoševičienė, these gains are the result of long-term strengths and ongoing efforts to create a supportive innovation ecosystem:
“Lithuania’s high ranking in the index is secured by our long-standing strengths, such as a highly skilled workforce and well-developed communication infrastructure, combined with continuous efforts to create and improve a favourable environment for innovation development.”
Key initiatives, such as attracting the international Plug and Play accelerator, investing in research and experimental development , promoting innovative public procurement , and offering comprehensive training programmes, have all contributed to Lithuania’s continued success.
Challenges and Future Focus
Despite its achievements, Lithuania recognises there is still work to be done. Tamoševičienė emphasised the need for greater collaboration between science and business, further development of an education system aligned with modern needs, and efforts to improve labour productivity.
The Global Innovation Index is compiled annually by the World Intellectual Property Organization (WIPO) and evaluates countries based on around 80 indicators. It highlights both the strengths and areas for improvement in each country’s innovation ecosystem.
For a detailed look at Lithuania’s performance, explore the full index: