Lithuania, a member state of the European Union, is a country in the Baltic region of northern-eastern Europe.
Lithuanian economy is the largest among the three Baltic states. It also has the highest GDP per capita in PPP.
Official Language: Lithuanian
Area: 65,300 km2
GDP Per Capita (PPP): 26,473 €
Industry in Lithuania
According to the World Bank’s “Doing Business Report” for 2016, Lithuania is No. 1 in the EU for the ease of starting a business.
Forbes named it as one of the top five entrepreneurial hubs in Europe.
World Economic Forum’s Global Competitiveness Report for 2015-2016 named Lithuania No. 1 in Central and Eastern Europe for technological readiness.
These fact speak a lot in favor of Lithuanian position in the European Union. With a population of nearly 3 million people, there are relatively few barriers for those who invest in Lithuania. While it conforms to European Union regulations for safety and environmental protection, Lithuania doesn’t have a lot of extra red tape or corporate taxes
When it comes to Lithuanian industry, the engineering industry is the most important sector. It includes the manufacturing of fabricated metal products, mechanical, electrical and electronic machinery, equipment and devices, as well as vehicles and other means of transportation.
The engineering industry plays a special role in ensuring the competitiveness of the Lithuanian economy for a number of reasons. First, this industry is the strongest sector of the manufacturing industry because of its generated added value (in 2007 it got over 4 per cent of the GDP of Lithuania), has the great influence on all economic productivity indicators. Second, the engineering industry is producing and supplying the means of production, technologies and solutions to other sectors of the manufacturing industry and economy in general, thus greatly determining their technological progress and competitiveness. Third, the engineering industry is the main “customer” for the system of education and training of engineering specialists, therefore, as a social partner’s, the economic and social activeness as well as image indirectly influences economic growth and the wellbeing of society.
Due to this strong proficiency in engineering and machinery Lithuania could become one of the biggest beneficiaries of the current Industry 4.0 developments leading to repatriation of production from Eastern Asian markets back to Europe.
In order to take advantage of the new Fourth Industrial Revolution and keep up with other EU Member States, Ministry of Economy of the Republic of Lithuania in cooperation with business associations, industry and the academia have prepared and submitted to the Government a resolution concerning the establishment of the National Industrial Competitiveness Commission ‘Industry 4.0’ (the Industrial Competitiveness Commission).
On 10 May 2017, the Government approved this Commission and confirmed its composition as well as the President. The Industrial Competitiveness Commission is the basis for the functioning of the established National Industry Digitalisation Platform ‘Industry 4.0’, which is steered and led by the Minister of Economy, and for the development of the industrial digitalization initiative in Lithuania.
Another specific action of the Digitizing European Industry Strategy, implemented in Lithuania – is the establishment of a Digital innovation hub.
The Hub mission is to help companies, notably SMEs and non-tech industry, in Lithuania to become more competitive by improving their business and production processes as well as products and services by means of digital technologies. Furthermore, the Digital Innovation Hub also plays an important role for the assessment of the digital skills needed and their application in companies and it becomes an important tool for digital transformation. To implement this action successfully, the Ministry of Economy cooperates with industry associations, academia and the companies that have already integrated such technologies as Big Data, Cloud computing, IoT, Robotics, Autonomous systems in their activities and can share their experience about the integration of digital innovations as an essential part of value creation in their business strategies with the others. The Digital Innovation hub in Lithuania also aims to become part of a network of Digital Innovations Hubs and help ensure that any business in Europe could have access to a Digital Innovation Hub at ‘a working distance’.