Openness to innovation
As a dynamic and nimble nation, Lithuania has been able to build flexible institutions that are hard-wired to respond quickly to the challenges and needs of the local, regional and global economy. And this flexibility, speed and decisiveness is brought to the way the country is eager to co-create with business to facilitate growth that benefits all. We have learned from the best role models – from Ireland to Singapore – and we are now happy to share our best practices with the global community.
Digital solutions that make life easier for all
Lithuania is fast on its way to becoming a truly digital society. 95 percent of public sector services have been digitised and public uptake is huge, with more than 87 percent of the country’s citizens using e-government services. Meanwhile, for business that penetration is at 9 6 percent. Of particular note is the country’s online tax registration and payment system, i.MAS, which allows users to submit and pay tax returns with just a few clicks.
According to the EU’s Digital Decade 2024 Eurobarometer, 75% of Lithuanian citizens are satisfied with everyday digital public and business services, believing that digitisation simplifies life.
Public invitation to experiment
Society, businesses and academia are openly encouraged to not only use digital services, but also to contribute to the development of innovative solutions. The GovTech Lab was set up to engage the latest technologies, startups and innovative businesses in further improving public sector services. There, a team of ambitious professionals is organising a series of challenges whose goal is not just to seek solutions to public sector problems, but also to actively foster and expand the govtech community. The solutions developed so far in this format are a major step forward in terms of breaking down barriers and stereotypes related to collaboration between startups and the public sector.
Forging New Paths with Leading International Accelerators
In 2024, Lithuania welcomed the arrival of the U.S. powerhouse Plug and Play. This collaboration with the renowned Silicon Valley accelerator is set to bolster Lithuania’s global standing in the startup ecosystem. Over the next few years, Plug and Play aims to nurture up to 60 innovative businesses, providing them with crucial opportunities to thrive and expand internationally.
Equally transformative developments are on the horizon for the education and burgeoning gaming sectors. Lithuania is set to host esteemed accelerators like “xEdu” and “GameBCN,” each bringing a wealth of experience and a proven track record. Together, they will support the growth of another 60 startups in these dynamic fields, fostering innovation and driving future success.
Where talented people are empowered to improve their country
Create Lithuania is the first-of-its-kind programme for creative, proactive professionals who want to contribute to shaping the modern future of Lithuania. Participants with international experience can use the knowledge and innovative ideas they’ve gained abroad to help improve Lithuania for everybody.
Over the decade of its operation, 309 projects have been implemented, 277 professionals have returned to live and work in Lithuania, and as many as 40% of the participants have remained in the public sector. In total, projects have been implemented in as many as 50 institutions in the country.
A government that loves innovation
Lithuania provides a safe and supportive environment for entrepreneurs or incumbents to sandbox their innovations. Heading the charge here is The Bank of Lithuania, which opened the first sandbox in Lithuania in 2018, which was targeted at the fast-growing fintech sector. Today in Lithuania you’ll find successful fintech sandboxes, an energy sandbox, a transport solutions sandbox, and a proptech sandbox for real estate initiatives. There are also a number of active innovation collaboration hubs, like the AML Centre of Excellence.
The Lithuanian authorities were quick to seize the opportunities that the post-Brexit landscape presented. With the Bank of Lithuania at the helm, and strong cooperation from the government, a regulatory infrastructure was soon put in place that was designed to provide the best conditions for fintech growth. And the results were almost immediate, and in only a few short years the country has become both a European and global hub for the sector.
Lithuania is an EU leader in private investment into public scientific institutions, with the amount that businesses have invested into R&D almost doubling over the last decade.
Lithuania’s Open Data boosts innovation and economic growth
To make the conditions for innovations easier for businesses, the State is working hard to formalise the open data principles and to simplify the process both for the institutions opening data and for data users.
The Open Data Portal publishes all available data and registers requests for new datasets, streamlining access for data providers and users.
One standout example of open data’s impact is the travel planning and public transport app Trafi, essential for Vilnius residents navigating the city.
Recent accolades reflect Lithuania’s progress: in the 2023 Data Europa report, Lithuania soared to 7th place from 24th in 2019, recognized as a ‘fast tracker’ since 2020. The OECD also ranked Lithuania 10th in its 2023 Open Data Index. Projections suggest open data could boost Lithuania’s GDP by 1.71% by 2026, underscoring its role in societal advancement and economic growth.
Fixing the environment with actions, not slogans
By 2030, we aim to have the first climate-neutral city, to reduce greenhouse gas emissions by 30%, to reduce waste to landfill from almost 25% to 5%, and to increase the area of protected territories from 17% to 30%. It is a long way to go, but in some areas Lithuania is already a role model for other countries, and we are eager to share our experience.
Vilnius is among 100 European cities selected to implement an experimental innovation programme to become a climate-neutral settlement by 2030 under the prestigious EU’s Mission “100 Climate-Neutral and Smart Cities”.
When it comes to recycling plastic packaging, Lithuania, together with Slovakia and the Netherlands, leads the EU (Eurostat, 2022).
The country has over 3,000 collection points where people can return single-use plastic packages. Thanks to the deposit system, 9 out of 10 beverage cans, one-way glasses and plastic bottles, with the deposit system mark, are returned.
In early 2021, Vilnius University took the historic step of becoming one of the first large organisations in Lithuania to use only green electricity for its operations. Vilnius University will reduce its CO2 emissions by around 7,500 tonnes every year.
Reducing carbon dioxide emissions is one of the strategic goals for the Lithuanian airports. Vilnius Airport has achieved significant recognition from the international environmental programme Airports Carbon Accreditation (ACA). Lithuania’s largest airport has managed to reduce its average carbon dioxide emissions per passenger by more than a third in just a few years. This and the results of various environmental projects have enabled the airport to reach the third stage of the international programme – the best rating among the Baltic airports.