At one point or another, most businesses have their eye on expanding their reach or scaling their offerings. This is especially true for organizations that leverage newer technologies to develop innovative solutions as well as investors looking to expand their portfolio of supported brands overseas.
However, it can be challenging for companies to find partnerships that are closely aligned with their own values and have the right skill sets to assist with expansion and stay competitive. Over the last several years, though, Lithuania has begun to stand out as a great option for businesses looking to diversify their tech partnerships.
A Hidden Gem in the Tech World
Located on the eastern coast of the Baltic Sea, Lithuania is a small but incredibly innovative country that has undergone a remarkable transformation in recent years. Lithuania has positioned itself as a modern, forward-thinking nation with a rapidly growing economy. A key driver of this growth is its quickly expanding IT sector and startup ecosystem, which have grown almost 7,1 times between 2018-2023, against a CEE growth average of 3,6x.
Lithuania offers a blend of factors that make it an attractive destination for tech partnerships, including:
Diverse Talent Pool
- Highly Skilled Workforce: Lithuania is home to one of the highest percentages of qualified STEM workforce in the EU. Of the nearly 7.3 million female scientists and engineers in the EU as of 2022, Lithuania and Bulgaria are home to half of this population. The country currently sees a steady stream of specialists in IT, engineering, and life sciences, with over 15,000 active researchers and scientists and thousands of other professionals working for startup organizations supporting the industry’s growth.
- Strong Educational Institutions: There are several prestigious universities and research institutions located in Lithuania that contribute to the development of its tech talent. There are currently seven separate universities and colleges focused on studying life sciences. One of these is the Life Sciences Center of Vilnius University, which in 2020 created the European Molecular Biology Laboratory (MBL) Partnership Institute, in charge of developing new genome editing technologies.
- Proficiency in English and other Languages: Diversified communications is key in the tech world, and Lithuania excels in this area, with over 76% of Lithuanians speaking more than one language. There are over 500 study programs in Lithuania that are taught in English, and the country has one of the highest ICT (Information and Communication) literacy of any other country in the EU, with many working professionals having 100% English efficiency.
Government Supported Ecosystem
- Funded Initiatives and Incentives: The Lithuanian government has been proactive in creating a favorable environment for tech companies to quickly expand their capabilities. There are various initiatives and incentives in place to support more innovation in a number of sectors while also making it easier to attract foreign investments.
- Tech Hubs, Incubators, and Accelerators: Lithuania has a wide network of tech hubs, incubators, and accelerators that provide support and resources for entrepreneurs and startups. These hubs offer co-working spaces, mentorship programs, networking opportunities, and additional access to funding.
- Thriving Startup Culture: Lithuania has established one of the fastest-growing startup cultures in Europe, with many innovative companies emerging in areas like fintech, cybersecurity, laser manufacturing, and artificial intelligence. The country is home to nearly 1150 startup businesses that have brought in millions of EUR in investments each year and account for one-third of the total value of the Baltic region.
Why Choose Lithuania for Your Tech Partnerships?
While gaining access to Lithuania’s innovative technology development capabilities is beneficial for US-based companies, there are a variety of other reasons why choosing Lithuania for a tech partnership is advantageous. Some of these reasons include:
Cost-Effectiveness
Compared to many Western European countries, Lithuania has lower labor costs. This allows companies to gain access to highly skilled talent pools without the inflated price tag often associated with locally established tech hubs. This cost advantage can be a significant factor in maximizing budgets and getting a much stronger return on investment.
Lithuania is also a business-friendly tax environment, ranking fifth overall on the 2024 International Tax Competitiveness Index. The country’s economic freedom score is also 72.9, which places it as the 10th freest country in the European region. These favorable conditions bode well when looking to reduce operational costs and improve overall profitability, making it an attractive destination for both growing startups and established businesses looking to expand their market reach.
Strategic Location
As a member of the European Union, Lithuania provides a conduit to the extensive European market. This strategic positioning allows businesses to navigate trade regulations much more easily and connect with partners across the continent.
The time zone in Lithuania is also convenient when connecting with both European and Asian partners. This minimizes scheduling challenges and allows for easier communication during core operating hours. Having this advantage can be invaluable when needing to streamline production timelines and build more productive relationships with key international partners.
How to Get Started with Lithuanian Tech Partnerships
Exploring potential tech partnerships in Lithuania can open up a world of opportunity for your business. Here are a couple of good starting points for moving forward with this process and connecting with the right people:
Attend Industry Events
Begin by immersing your business in the Lithuanian culture by attending industry events and conferences. These events provide a platform to meet key players, learn about the latest trends, and explore potential partnerships. Keep an eye out for major tech conferences and industry-specific events happening throughout the year.
Leverage Innovation Hubs
A great way to explore more opportunities within the Lithuanian tech landscape is by using Innovation Hubs. Organizations like InnoHub Lithuania help to establish an important bridge between US and Lithuanian businesses, providing their members with localized expertise and a strong understanding of how to establish successful transatlantic partnerships.
InnoHub Lithuania will also host various networking events and workshops throughout the year that bring together Lithuanian businesses, international investors, and industry leaders all in one place. This is a great platform for building relationships and exploring potential ventures.
By Diana Placiakiene, the Business Community Manager at InnoHub Lithuania
Author Bio:
Diana, the Business Community Manager at InnoHub Lithuania, is an experienced community builder. She has worked with early-stage startups, government initiatives, and small businesses. As a representative of Innovation Agency Lithuania in Silicon Valley, she serves as a liaison between Lithuanian tech companies and the Silicon Valley ecosystem.
Additionally, Diana spearheaded the San Francisco American Lithuanian community for over four years, establishing new initiatives and programs for professionals. Diana holds an MBA from Mills College in Oakland, California.