Today’s businesses are under constant pressure to remain innovative, especially when supporting tech-driven industries. But to get to this point, organizations need to have access to specialized skills and leading technologies to help them drive their businesses forward.
To access the necessary resources and expertise to scale their businesses, many US organizations are expanding their partnerships overseas, helping them broaden their capabilities and maximize their market reach. Over the years, Lithuania has proven to be an ideal choice for facilitating this expansion.
Lithuania’s tech-driven ecosystem has seen tremendous growth over the years. Located on the eastern shores of the Baltic Sea, Lithuania has stood out over the years for its strong government support in leading various technology initiatives with a strong focus on research and development. This presents many opportunities for young startups and established businesses alike to learn from, collaborate with, and grow alongside various Lithuania-based organizations to create significant industry impacts on a global scale.
Overview of Lithuania’s Growing Tech Ecosystem
Lithuania has been able to scale its tech ecosystem successfully due to a number of factors. Due to its ability to continuously gain investments it needed to thrive and its government support in driving innovation across various industries and sectors, it has become one of the most strategic locations in Europe for tech companies to grow.
Below are some of the factors contributing to the country’s growing tech ecosystem:
Industry Developments Across Key Tech Sectors
Lithuania has concentrated its development efforts across a wide range of critical tech sectors. These sectors include:
- Fintech – In the past year, Lithuania’s fintech sector grew 13% and is currently made up of over 270 active organizations and 7,400 employees continuing to develop new financial technologies. The country is now the largest fintech hub in the EU and has placed a large development focus on industry compliance solutions, risk management software, and other key back-office operations for financial companies.
- Cybersecurity – Data security solutions are in constant demand, and Lithuania’s highly specialized workforce has continued to make the country a key contributor to global cybersecurity efforts. Major cybersecurity companies like Nord Security have become global leaders in the space while centralizing their operations in Lithuania.
- Artificial Intelligence – For years now, Lithuania has been at the forefront of many new developments in AI technologies. In 2019, the country adopted an Artificial Intelligence Strategy and became one of the first countries to take a more proactive approach to ethical development and use of AI technologies.
Expanding Infrastructure and Governmental Support
Lithuania has continued to invest heavily in its digital infrastructure – specifically in areas like high-speed internet capabilities and the support of 5G networks. Currently, the country has one of the EU’s fastest broadband networks, with 90+% 5G area coverage.
In addition to its rapidly expanding physical infrastructure, the country is regularly supported by highly progressive governmental programs. These initiatives include various tax incentives for new and foreign investors in the country, startup Visa programs to allow non-EU entrepreneurs to establish new businesses, SME development grants, and export credit guarantees.
Regular Interest from Large-Scale Investors
Over the years, Lithuania has seen regular investments in its tech sector from major venture capital firms and angel investors. This has created a large influx of funding to help young startups quickly develop their businesses and gain access to the necessary resources to experiment with more innovative products.
How US Businesses Can Create New Opportunities With Lithuanian Partnerships
Thanks to the quickly developing economic status of Lithuania, there are a number of great opportunities for US-based businesses to expand their partnerships overseas. Below are some of the unique advantages businesses can gain when establishing new Lithuanian partnerships:
Access to a Large Talent Pool
Lithuania has a strong pool of talent focused on various STEM fields, along with a network of highly accredited universities and research institutions with exceptional academic standards. This has created a highly diverse available workforce in the country, with many individuals specializing in a number of in-demand roles in categories like IT, engineering, cybersecurity, and biotechnology.
In addition to gaining access to a more specialized workforce, US-based organizations can also benefit from hiring individuals at lower costs. Due to the country’s competitive labor market, businesses are often able to source highly trained professionals more cost-effectively than in other parts of Europe or North America.
Collaborative R&D Opportunities
Establishing transatlantic business relationships with Lithuania opens up many new opportunities to leverage advancements in the research and development space.
With Lithuania’s focus on AI technology development and the growing number of disruptive startups making incredible strides in new technologies, US businesses have the ability to collaborate across a wide range of sectors. This could involve the development of new ICT solutions, advancing healthcare technologies, or implementing high technologies.
Expanded Market Reach
Lithuania’s strategic positioning in the Baltic and the country’s EU membership makes it a valuable gateway that US businesses can use to help expand their international market reach. This includes gaining access to a market of over 500 million consumers and tapping into a significantly larger network of business services and potential partnerships.
Another advantage of Lithuania’s geographical advantages is its well-supported infrastructure of connected transportation hubs, including seaports, airports, and railways. This can create a number of logistical advantages for organizations looking to open up new distribution avenues as they expand their offerings overseas.
Effective Strategies for Establishing Sustainable Partner Relationships Overseas
Building successful partnerships overseas requires careful planning and a focused approach. Here are some key strategies to ensure that your collaborations with Lithuanian companies are mutually beneficial and sustainable:
Identify Mutual Goals
Before you start searching for potential partners, it’s important to consider your goals. These may include acquiring new talent, gaining additional technology capabilities to help your business scale, or securing new funding.
Establishing these goals ahead of time will help you prioritize your focus when growing your network and reaching out for new potential partnerships.
Explore Government Support Programs
One of the great things about exploring new business opportunities in Lithuania is that various government-funded programs are specifically designed to facilitate and support EU and non-EU partnerships.
Before proceeding, take the time to research and understand all of the provisions available to US-based organizations when entering into new overseas partnerships. The Lithuanian government has prioritized attracting more foreign investments and creating a more forgiving environment for businesses looking to establish a presence in the country.
By taking full advantage of these programs, US businesses can not only reduce financial barriers when developing but also build much stronger and more sustainable partnerships.
Leverage Innovation Hub
To fully tap into the Lithuanian tech scene, businesses should leverage the power of Innovation Hub Lithuania. Organizations like InnoHub Lithuania can be a vital connector between US and Lithuanian-based businesses. They do this by providing localized expertise and knowledge on how to find and establish successful partnerships while helping to facilitate important networking components.
InnoHub Lithuania hosts a number of networking events and workshops year-round. These help to bring together Lithuanian businesses, international investors, and industry leaders together, creating ample opportunities for relationship building and exploring potential joint ventures.
Explore New Opportunities to Grow Your Business
Lithuania provides a wide range of benefits for businesses looking to leverage their fast-developing tech sector. By looking for new opportunities to establish new transatlantic partnerships within the country, US businesses can continue to innovate their products and services while better positioning themselves overseas.
