Lithuania offers a real-time economy innovation hub in Northern Europe

Digital data is the new oil of our times, fuelling real-time economies and innovation under proper regulation, says Simonas Černiauskas, CEO at Infobalt, Lithuania’s digital technologies association. This Northern European country by the Baltic Sea has concentrated its efforts on opening digital data and transparent, consistent regulation, aiming to create an environment where businesses can freely experiment with innovations and develop services.

Lithuania is reaping the rewards of these efforts — recently ranked 8th in the European Union and 16th globally for start-up ecosystem growth and attractiveness. For a nation of just 3 million people, with limited natural resources, these are significant achievements.

“Data is a strategic resource in the age of knowledge and digital technologies. It powers numerous fields — from artificial intelligence solutions and biotechnology to transport, smart agriculture, renewable energy, and healthcare,” Černiauskas stated in an interview.

Various studies consistently rank Lithuania among the top ten advanced European and OECD countries for data openness.

According to Lithuania’s Ministry of Economy and Innovation, the size of the open data market in Lithuania is growing rapidly, with projections estimating it will reach $138 million by 2025 and $314 million by 2026. By 2026, open government data is expected to contribute up to 1.71 per cent of the country’s GDP.

“The idea that openness, clear regulation, and institutional support would create a favourable environment for digital innovation has proven successful,” Černiauskas said in the interview. This success translates into higher quality public services and a solid foundation for businesses.

The mobility platform developed and maintained by the public transport start-up Trafi, born in Vilnius, Lithuania’s capital, helps manage complex transportation systems in European cities like Berlin, Brussels, Munich, Portsmouth, Zurich, and Southampton.

Lithuania, alongside its regional partners, was one of the first to develop and test a digital eCMR platform under real-world conditions. This platform eliminates the need for paper documents and accelerates control-related processes.

The company Oxipit, leveraging open health data, developed artificial intelligence solutions for automating the evaluation of chest X-rays, thereby reducing the workload on radiologists. These solutions are already certified in the European Union.

Regulation also plays a significant role, notes Infobalt’s Černiauskas. “We are an EU member state, so a large and growing portion of regulation is common across all countries. This can be seen as a barrier, but it can also be turned into an advantage,” he says.

This thinking has helped Lithuania become one of Europe’s main centres for financial technology (fintech) innovation. By implementing the EU’s open banking directives and providing businesses with the necessary tools and environment, this Northern European country is now home to nearly 300 innovative fintech companies and serves as a primary product testing ground.

Lithuania is currently striving to replicate its fintech breakthrough and success story in other areas, such as cybersecurity — where the country is ranked second in the world for its readiness — as well as in the artificial intelligence and medical technology sectors, according to Černiauskas.