LITHUANIA:FOSTERING INNOVATION AND INDUSTRY 4.0

MANUFACTURING PERFORMANCE DAYS 2019

GINTARAS VILDA

VICE MINISTER OF ECONOMY AND INNOVATION OF THE REPUBLIC OF LITHUANIA

FINLAND & LITHUANIA: A VALUED PARTNERSHIP

…So what do WE bring to the table?

Exp

ort

/im

po

rt

• Doubled since

2010

• Finland is

Lithuania’s 11th

biggest

import/export

partner in EU To

uri

sm

• Lithuania gets more

visitors from

Finland than any

other Scandinavian

country

Invest

men

ts • Finland is 8th

biggest investor

in Lithuania

• Finland is

considered to be

1 of 7 priority

markets for

attracting FDI to

Lithuania

• Learning and

partnering

with TOP 3 EU

innovator

Inn

ovati

on

Source: Statistics Department of Lithuania, 2018; Ministry of Foreign Affairs, 2018

LITHUANIA’S ECONOMY: FAST GROWING & GLOBALLY COMPETITIVE

Bu

sin

ess

fri

en

dly • #4 for the Ease of

starting Business in

EU1

• #5 in fulfilling ICT business needs

globally2

• 5x more startups in 5 years3 Larg

est

Balt

ic

eco

no

my

• 45.2 bil EUR in

GDP: largest

economy in the

Baltics4

• +3.6% GDP growth in 20185

• +~60% growth

in cumulative

FDI since 20185

Gre

at

for

man

ufa

ctu

rin

g

• #2 most attractive

destination for

manufacturing

globally6

• 20.9% GDPfrom

manufacturing5

Sources: 1. Doing Business 2019; 2. Invest Lithuania, 2018; 3. Enterprise Lithuania, 2018; 4. Eurostat 2018; 5.

Lithuanian Department of Statistics, 2018; 6. Manufacturing Risk Index, 2018

PART I

LITHUANIA’S INNOVATION ECOSYSTEM & REFORM

Source: Lithuanian Industry Digitization Roadmap 2019-2030

MANUFACTURING HAS BIG IMPACT ON ECONOMY, BUT LACKS INNOVATION

-100,0-80,0-60,0-40,0-20,0

0,020,040,060,0

Manufacturing: share inGDP

Share of medium-high-techsectors in totalmanufacturing

Turnover per personemployed

Share of employees inmanufacturing sector in

total employment

Manufacturing: wages andsalaries

Manufacturing: laborproductivity

Summary of benchmark analysis (deviation from indicator average, %)

Belgium

Denmark

Germany

Netherlands

Finland

Sweden

Lithuania

INNOVATION ECOSYSTEM: ACHIEVEMENTS

According to EU Innovation

Scoreboard, biggest progress

achieved in:

• Innovation friendly environment +61%

• Innovative SMEs collaborating with

others 72%

• Firm investment 55%

• Venture capital expenditures 53%

+20%

During 2010-2017 among all EU countries Lithuania

managed to increase innovation performance the

most

Source: EU Innovation Scoreboard, 2018

638,3

1089,3

1274,6

0

200

400

600

800

1000

1200

1400

2012 2014 2016

Mil. EUR

Income from the commercialization ofnew products (2016)Lithuanian companies

6.6 bil EUR

Business spending on innovation

Higher education & public sector

5.5 mil EUR

Turnover from new products

2,4

3,77

6,6

0

1

2

3

4

5

6

7

2012 2014 2016

Total, bil EUR

BUSINESS SECTOR INCREASES INVESTMENTS IN INNOVATION

KEY ACTIONS IN IMPLEMENTING THE

REFORM

ONE

INNOVATION

AGENCY

THE LAW ON TECHNOLOGY & INNOVATION

BENEFITS OF INNOVATION REFORM by 2020

Cit

izen

• +7% avg wage

Ind

ust

ry • 53% innovative

companies

• Less cases of the

death valley Co

un

try • +3% GDP

• +10% export(+1.4 bil EUR)

• Lithuania’s rise in

EU Innovation

Scoreboard

Synergy in transitioning to industry 4.0 & digitization initiatives+

PART II

TRANSITION TO INDUSTRY 4.0 IN LITHUANIA

S3 STRATEGY: EMERGING & MOST INNOVATIVE INDUSTRIES

ICT

• 10% avg annual

growth of

production value

2012-2017

• 22% exports

intensityLif

e s

cie

nces • 27% avg annual

growth of

production value

2012-2017

• 95% exports

intensity

Hig

h-t

ech

en

gin

eeri

ng

ind

ust

ry

• 8% avg annual

growth of

production value

2012-2017

• 85% exports

intensity

• 20% export growth

in 2017

• 10% global laser

market

Source: Enterprise Lithuania, 2018

In a territory covering: Lithuania, Latvia,Estonia, Belarus, North of Poland

Source: European Commission, 2018 November

UNDER

PREPARATIONINDUSTRY 4.0 PLATFORM

AMBITION TO LEAD IN DIGITISATION

LITHUANIAN INDUSTRY DIGITISATION: ACTIONS by 2030

ENVIRONMENT

MAIN BENEFITS OF INDUSTRY 4.0 PLATFORMA

cad

em

ia

• New and

interdisciplinary study

programmes

• Increased number of

PhDs working in the

field of industry

digitalization

• New scientific and

technology

demonstration

equipment

Ind

ust

ry

• Companies deeply

embedded in

international value

chains

• Increased generated

added value & turnover

& productivity

• More innovative

companies

• Increased investments

in innovation

• Digital Innovation Hubs

Co

un

try

• Increase of exports

• Growing share of GDP

generated by high-tech

companies

• More effective

innovation system & state

support for companies

• Higher rankings of

state’s performance in

digitization & innovation

CHALLENGE ME AND I’LL DELIVER!Sincerely yours,Lithuania

GINTARAS VILDA

VICE MINISTER OF ECONOMY AND INNOVATION OF

THE REPUBLIC OF LITHUANIA