Brief description of the innovation ecosystem and differentiation factors



Lithuania’s innovation ecosystem, particularly in the deep-tech sector, is rapidly emerging as a leader in Europe. Supported by strong governmental initiatives, a highly educated workforce, and a focus on technology-intensive industries, it stands out.

The Lithuanian Innovation Agency’s ‘The Lithuanian Startup Ecosystem 2023’ report highlights Lithuania as the fastest-growing startup ecosystem in the Baltic region for 2023. It also ranks second in both overall and per capita VC investment in Central and Eastern Europe.

Key differentiation factors in the deep-tech sector contribute to its distinct position:

Focus on Niche Technologies Lithuania is globally acclaimed for its specialized laser technology, notably in ultrafast lasers for science, medicine, and manufacturing, drawing international investment. The country has also significantly advanced in biotechnology, emphasizing genetic research and pharmaceuticals, bolstered by strong academic and research partnerships.


Education and Research Institutions Lithuania’s innovation ecosystem thrives on its interconnected network of universities and research institutes, such as Kaunas University of Technology, Lithuanian University of Health sciences, which not only cultivate a skilled workforce but also drive cutting-edge research fueling the deep-tech industry. According to data from Innovation Agency Lithuania, the country ranks second in the EU for STEM academic discipline preferences among students, with a quarter of them opting for STEM fields.

Additionally, Lithuania stands second among OECD nations with 49% female representation in scientific fields, showcasing its commitment to diversity and inclusion in science.

Governmental Support and Initiatives The Lithuanian government actively promotes innovation through financial incentives like grants and tax breaks, streamlined regulations, and investments in tech parks and incubators.

Tech-Park Kaunas (science and technology park – leader in the region boosting innovative and technology-oriented companies growth) works in partnership with key national organizations, including the Ministry of Economy and Innovation and Invest Lithuania, to foster economic growth and innovation. Through regular communication and collaborative initiatives, these entities pool their expertise and resources to enhance Lithuania’s entrepreneurial and investment ecosystem.

National and regional framework

According to Dealroom reports, at the beginning of 2023, Lithuania was home to 740+ startups. The value of Lithuanian startups grew more than 16-fold over the past 5 years and is currently around €9.5B. Lithuania offers abundant opportunities for innovative businesses, with support available from local and international venture capital funds, accelerators, angel investors, grants, and other programs. Globally recognized for ease of doing business and digital public services, Lithuania provides excellent conditions for startups with free services and an innovation-friendly government. The country boasts a mix of affordable infrastructure solutions, including science and technology parks, business accelerators, incubators, co-working spaces, hubs, and sandboxes.

The Lithuanian investment landscape is full of both regional and foreign VC firms. Lithuania’s startup ecosystem has firmly captured the attention of international investors—in 2022, 35% of the VC funding in Lithuanian startups came from the USA and the rest of Europe. According to Dealroom, Lithuanian investors are most active at early stages, covering 36% of all early-stage funding rounds in 2022. In addition to VC funds, Lithuania is known for its vibrant community of business angels, which has a significant impact on the ecosystem. The Lithuanian Business Angel Network (LitBAN) has 300 members who invested €14.5M in 21 startups in 2022. The impact of LitBAN reaches far beyond the Lithuanian border, and in 2022, the organization was recognized by the European Business Angel Network as its best-performing member. Additionally, it’s important to note UAB “Invega,” a state-established institution supporting small and medium-sized businesses in securing financing. Invega currently invests in most venture capital funds in Lithuania, aiding companies in obtaining vital investments for growth. Venture capital funds back startups and established firms with high growth potential.

More information about:

Main strategic sectors in Lithuania

  • ICT (Information and Communication Technology) Ecosystem:

Lithuania has a vibrant ICT ecosystem characterized by a highly skilled workforce, favorable business environment, and strong government support. The country is known for its expertise in software development, cybersecurity, fintech, and IT services.

Strategic segments:

  • Software development
  • cybersecurity
  • fintech
  • IT services
  • Telecommunications
  • Life Sciences Ecosystem:

Lithuania’s life sciences ecosystem is rapidly growing, with strengths in biotechnology, pharmaceuticals, medical devices, and healthtech. The country offers a strong research base, skilled workforce, and supportive regulatory environment.

Strategic segments:

  • Biotechnology
  • Pharmaceuticals
  • Medical devices
  • Healthtech
  • Research and development
  • Fintech Ecosystem:

Lithuania has emerged as a leading fintech hub in Europe, known for its innovative regulatory framework, fast licensing process, and supportive infrastructure. The ecosystem encompasses a wide range of fintech activities including payments, banking, lending, and blockchain.

Strategic segments:

  • Payments
  • Banking
  • Lending
  • Blockchain
  • Regtech
  • Green Energy and Cleantech Ecosystem:

Lithuania is making significant strides in renewable energy and cleantech, aiming for sustainability and reduced carbon footprint. The ecosystem focuses on renewable energy production, energy efficiency, waste management, and environmental technologies.

Strategic segments:

  • Renewable energy
  • Energy efficiency
  • Waste management
  • Environmental technologies

Key actors of the Lithuanian ecosystem

Public Institutions:

Ministry of Economy and Innovation The Ministry of Economy and Innovation is a Lithuanian government institution responsible for developing economic policies, promoting innovation, and managing projects to boost the nation’s economic and technological growth.

Innovation Agency Lithuania is a national agency operating under the Ministry of Economy and Innovation of the Republic of Lithuania. It is designed to foster business and science collaboration and to support technological and innovative advancement across various industries in Lithuania.

Invest Lithuania Invest Lithuania is a government agency that attracts foreign investment by offering support, information, and consultancy to companies looking to establish or expand their operations in Lithuania.

Lithuanian Innovation centre The Lithuanian Innovation Centre (LIC) is a key organization in Lithuania dedicated to fostering innovation across various sectors of the economy. Its primary mission is to promote collaboration between research institutions and businesses, facilitate technology transfer, and enhance the competitiveness of Lithuanian enterprises in the global market.


Technological Communities:

Tech-Park Kaunas Tech-Park Kaunas is one of the largest business incubators and technology hubs in Lithuania that provides infrastructure, business support services, pre-acceleration programs for DigiTech and MedTech companies and a collaborative environment to foster the growth and development of startups and innovative companies.

Vilnius Fintech Cluster Vilnius Fintech Cluster is an initiative that brings together businesses, educational institutions, and government agencies in Vilnius to support and accelerate the growth of the fintech industry through collaboration, innovation, and shared resources.

Vilnius Tech Cluster Vilnius Tech Cluster is an alliance in Vilnius, Lithuania, bringing together tech businesses, academic institutions, and government entities to promote innovation, collaboration, and technology development, boosting the local economy.

Sunrise Valley Science and Technology Park Sunrise Valley Science and Technology Park is a leading innovation center in Lithuania that supports technology-oriented startups and enterprises through facilities, resources, and collaboration opportunities.

Klaipeda Science and Technology Park Klaipeda Science and Technology Park is a hub in Klaipeda, Lithuania, that fosters innovation by providing support services and facilities to science and technology startups and enterprises.

Laser and Engineering Technologies Cluster (LITEK) is a collaborative network of scientific, academic, and business entities focusing on the development of innovative laser, optical, and engineering technologies.

Lithuanian Robotics Association is an organization dedicated to promoting robotics technology and innovation within Lithuania. It serves as a platform for collaboration among businesses, educational institutions, researchers, and other stakeholders in the field of robotics.

Life Sciences Cluster The Life Sciences Cluster is a collaborative network of companies, academic institutions, and research organizations that focus on the advancement and commercialization of biotechnologies, pharmaceuticals, biomedical technologies, and other areas related to life sciences.

Lithuanian cluster network The Lithuanian Cluster Network is a coordinated effort to facilitate collaboration, foster innovation, and enhance competitiveness among various industry clusters within Lithuania. This network acts as an umbrella organization that connects different clusters across a range of sectors including technology, life sciences, manufacturing, energy, and more.


Start-up Support Entities and Financing Entities:

Startup Lithuania Startup Lithuania is a national initiative aimed at fostering the growth of startups in Lithuania through resource provision, event organization, and networking opportunities with investors, mentors, and industry experts.

Innovation Agency Lithuania is a national agency operating under the Ministry of Economy and Innovation of the Republic of Lithuania. It is designed to foster business and science collaboration and to support technological and innovative advancement across various industries in Lithuania.

Firstpick VC fund and an accelerator for tech startups in the Baltics.

Rockit is a prominent hub in Vilnius, Lithuania, that primarily focuses on fostering growth and innovation in the fintech and sustainable innovation sectors. It serves as a vibrant community for entrepreneurs, startups, and businesses that are dedicated to creating impactful solutions in finance, technology, and sustainability.

Lithuanian Business Angel Network is a leading angel investor network in Lithuania, linking early-stage startups with seasoned investors. They offer assistance in fundraising, mentorship, and networking to support startup growth.

Business Angels Fund is a type of investment fund or network that pools capital from individual investors—known as “business angels”—to invest in startup companies. These investors not only provide financial backing but also offer their expertise, industry connections, and management advice to help young companies grow and succeed.

Investors’ Forum Investors’ Forum is a non-profit association uniting diverse investors such as angels, venture capital firms, and private equity investors. It offers a platform for networking, knowledge exchange, and collaboration within the investment community.

Tech-Park Kaunas accelerator Startup accelerators like Tech-Park Kaunas Accelerator typically provide early-stage startups with practical training, mentorship, possibilities to attract funding from investors, and networking opportunities to help them grow and succeed.