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Lithuania Investment in key sectors

Investment in key sectors: fueling technology and education in Lithuania

Lithuania’s economic progress is deeply intertwined with its strategic focus on technology and education. Both sectors attract robust public and private investments, fostering innovation, workforce development, and global competitiveness.

Technology sector: a hub of innovation and growth

Lithuania’s technology sector has become a cornerstone of its economic strategy, with substantial investments from both public and private stakeholders propelling the country into the ranks of Europe’s top tech hubs.

Public investment: driving digital transformation

The Lithuanian government is a proactive supporter of the technology sector, channelling resources into initiatives aimed at strengthening digital infrastructure and innovation. 

Lithuania’s recovery and resilience plan includes strategic reforms and investments to support digital transformation:

  • Connectivity
      • €73 million is allocated to expand very high-capacity networks, such as 5G and fibre infrastructure, focusing on rural and remote regions to bridge the digital divide.
  • Public sector digitalisation
      • €282 million is dedicated to modernising the public sector, enhancing e-governance, and providing better digital services.
  • Boosting digital skills
      • Reforms promote digital literacy for various groups, including children, employees, civil servants, and senior citizens. These efforts aim to reduce the shortage of IT professionals and prepare the workforce for future challenges.
  • Support for advanced technologies
      • €103 million is set aside for promoting innovation, including the development of advanced tools tailored for the Lithuanian language. These tools enable universal access to digital resources and support collaboration between scientific and business sectors to create innovative products and services.
  • Cultural sector digitalisation
    • Investments focus on increasing the use of digital technologies in the cultural sector, helping preserve heritage and improve access to cultural resources.

Private investment: powering innovation-driven ventures

In 2023, €292 million in venture capital funding was secured by Lithuanian startups, with the majority of this funding concentrated in technology-focused sectors:

  • Fintech: Lithuania has emerged as one of Europe’s top fintech hubs, attracting international investors with its favourable regulatory environment and innovative startups.
  • Cybersecurity: companies like Nord Security, which raised €100 million, highlight Lithuania’s leadership in digital safety solutions.
  • Enterprise Software: a growing number of startups are developing scalable B2B solutions, contributing to the sector’s dynamic growth.

Source: Lithuania: Your Targets. Exceeded, Invest Lithuania, February 2024.

The synergy between public policies and private investments has made Lithuania a beacon of innovation in the CEE region.

Education sector: building a skilled workforce for the future

Lithuania’s education sector plays a pivotal role in its economic success, with a dual focus on public investment in foundational learning and private sector engagement in workforce development.

Public investment: nurturing STEM excellence

In Lithuania, general government expenditure in the EU on ‘education’ amounted to €746 billion or 4.7 % of GDP in 2022. This significant investment supports initiatives aimed at improving the quality of STEM (Science, Technology, Engineering, Mathematics) education, which serves as a foundation for the tech ecosystem.

Key focus areas: upgrading school curriculums, integrating digital tools in classrooms, and promoting higher education collaborations with industry leaders.
Such policies position Lithuania as a regional leader in education-driven innovation.

Private investment: empowering digital skills development

The private sector complements public initiatives by investing heavily in EdTech solutions and workforce development:

  • Google and Nasdaq have launched digital skills programmes, partnering with Lithuanian universities to prepare students for tech-driven careers.
  • Other private firms have supported initiatives aimed at improving coding, data analytics, and AI training, ensuring a steady pipeline of talent for Lithuania’s tech sector.

This strong alignment between public and private efforts ensures that Lithuania’s education system not only meets current economic demands but also anticipates future trends.

Explore more about Lithuania’s growth sectors