The brains of the region

During the last decade, the Lithuanian economy has not only experienced significant transformation but also showed an impressive economic performance. Lithuania has begun to upgrade its traditional industries irrespective of their place on the technological spectrum to use high value-added, knowledge-intensive and modern industrial processes. It has become open to innovation, promoting higher-quality high-tech industries through R&D support, high-tech industry incubators, and a motivated educational focus. 

• 1^st in the EU for share of graduates in total population¹ 
• 6^th in the EU for language knowledge – half of the population speaks at least two foreign languages
• 8 000 R&D researchers and scientists in various fields
• 1 800 life science students at universities and colleges with 400 graduates each year
• Labour productivity in R&D sector is 4.7 times higher than the overall economy’s labour productivity
• Home to well-known names like Teva Pharmaceutical Industries Ltd., Thermo Fisher Scientific, Valeant Pharmaceuticals and Moog Medical Devices Group. They were driven by Lithuania’s rich scientific tradition, its accumulated knowledge, and genuine infrastructure

Business-friendly environment

Lithuania is a strategic location for a significant reduction of costs while serving both Eastern and Western markets. There are favorable tax incentives for investments into R&D. Companies in Lithuania enjoy triple deduction for research and development (R&D) costs, in contrast to double deduction applied in most developed countries:

•  Triple deduction: expenses incurred by companies while carrying out R&D can be Business-Friendly Environment deducted from taxable income tree times.
•  Super-accelerated depreciation: the acquisition price of fixed assets used in the R&D activities can be written-off within two years.
•  Investments into substantial technological improvements entitle companies to reduce taxable profits by 50%.

Labour costs more than 4 times lower than the EU average.

Valleys

With a pool of 18,000 Research and Development (R&D) personnel, Lithuania has developed a network of 5 R&D valleys specializing in laser, nanotechnologies, semiconductor physics, electronics, engineering, biotech, energy, environment, ICT, and agriculture. The valleys are based in the capital city of Vilnius, in Kaunas (the 2nd largest city and an industrial centre), and in the non-freezing port city of Klaipėda.

Advantages of R&D valleys in Lithuania

Source: 1 Eurostat