Every time there’s a mention of new and innovative technologies, people immediately assume this technology came from large tech enterprises or well-developed first-world countries. But that’s not necessarily the case.
More often than not, it’s the small countries and companies that are leading the way forward. Lithuania is one such country that has been tech-oriented for some time now. A small country with little over 2 million citizens, Lithuania is at the very border between the East and the West, making this country an ideal location for startups and individual entrepreneurs alike.
After all, the Lithuanian government encourages people and companies to come in by offering them tax benefits and other incentives. Their technological ecosystem has greatly improved over the years, making Lithuania a fertile soil for new technologies to be developed. So with that in mind, let’s have a look at how Lithuania leads the way for technology.
The current state of Lithuania’s teach ecosystem
Lithuania has had one of the fastest-growing economies In Europe for the past decade. They are one of the few countries that managed to recover from the pandemic rapidly. As such, Lithuania offers numerous benefits to startups and tech firms that need stability in order to prosper and develop further.
As a matter of fact, Lithuania has one of the highest number of citizens with a university degree in Europe, thus offering a highly educated and skilled workforce to foreign companies. Entrepreneurs and startups that establish a foothold here can, therefore, easily tap into the vast pool of proficient workforce.
Not only that but Lithuania also offers quite favorable tax benefits to foreign companies and investors alike. As a matter of fact, the corporate income tax is only 15% in Lithuania but it can further be reduced to just 5%, provided the companies meet certain conditions. In other words, Lithuania offers more than favorable conditions to both local and foreign entrepreneurs.
How does Lithuania encourage both local and foreign investors to establish their companies in this country?
As every country, Lithuania needs stable economic growth in order to prosper. In order to do that, Lithuania made sure that their country is welcoming to all. One such example of this is their Startup Visa program that allows foreign entrepreneurs to come in and start their own company via temporary residence, thus allowing them to skip the lengthy bureaucratic processes of applying for citizenships.
As for the local entrepreneurs, the Lithuanian government has provided numerous subsidies and grants for anyone who wishes to start their own venture in this country. Such positive encouragement has resulted in many tech companies deciding to develop their products or services in this country.
These technologies help various industries such as the gaming industry. Where games need to be updated and upgraded continuously to keep up with the demand. A good example is the slot game Book of Ra Deluxe where it’s part of a series of innovative and different games which can be found on various Lithuanian platforms.
The Lithuanian government has also provided both local and foreign entrepreneurs with incubators and accelerators that provide new companies with resources and connections they need to grow and develop further.
For instance, The Lithuanian Innovation Center allows entrepreneurs and company owners to find partners, access to funding and support for their projects much faster than they normally would. This is, in fact, very helpful in getting some of the tech firms with the right potential get their foot off the ground.
Venture capital opportunities in Lithuania
As mentioned before, it’s much faster and more seamless for new companies to find the resources they need via various government-funded projects. Some of Lithuania’s most popular startups, such as Vinted, Trafi, and TransferGo, among others, of course, have managed to grow thanks to such initiatives.
The potential of these companies that now operate internationally has drawn the attention of venture capital investors that are scouting Lithuania’s startup environment for some time now.
As you may already know, some tech companies need a lot of capital to reach their objectives, which is much easier to do when you have access to potential venture capital investments. Thanks to the support of Lithuania’s government and other projects and incentives, this country has become one of the leading business hubs in Europe.
Closing Words
As you can see, even small countries like Lithuania have the potential to lead the way for future technological advancements and development with the right infrastructure and strategy in place. If things go the way they currently are, Lithuania will be pioneering the way for technology for years to come.
