Innovation and R&D

From the world’s most powerful laser through to the extra-resistant glass in over 4.5 billion smartphones, Lithuanian innovation is impacting research and product development globally. Companies are currently assembling international-quality research teams here at highly competitive costs, and there is strong and committed governmental support for R&D. So it’s not surprising that Lithuania has jumped 8 places in the European Innovation Scoreboard and now ranks ahead of Poland, Hungary, Slovakia and Spain.

Lithuania has been planting seeds which are now bearing fruit, thanks to its longstanding focus on developing talent. Its population has EU-leading higher education levels. And, as a small country with strong business-academy links, international investors are playing a key role in shaping courses in order to nurture exactly the talent they need. And going forward, the government is committed to further growing STEM education. It’s thanks to this focus on talent that Lithuania’s scientific research institutions rank 2nd in the CEE region.

Small and tight-knit, Lithuania’s innovation ecosystem is a real community where solutions are quick and networks are instant. And when it comes to assembling a tailoured team of researchers – like the one at Thermo Fisher Scientific’s World Excellence Center for Molecular Biology – your investment simply goes further.

Lithuania combines large-scale commitment to innovation with small-scale, sector-specific tailoring. This enables it to support dynamic businesses with both generous support and an ability to adapt to niche needs. R&D expenses are fully deductible 3 times, while corporate tax can be reduced by up to 50%. And because nurturing talent is a top priority, 50% of employee training costs can be reimbursed.

Support for R&D and the tech sectors is a national priority. So much so that between 2006-2013 Lithuania spent 411 million EUR to develop its R&D infrastructure and science valleys. Another 679 million EUR will be put into further enhancement of R&D capacity over the period 2014-2020. (Source: National Audit Office of the Republic of Lithuania, 2017)