On Thursday, the Seimas approved a package of laws prepared by the Ministry of Economy and Innovation that will allow the continuation of the innovation reform and the establishment of an agency in charge of the country’s innovations. This reform will boost the country’s innovation potential and help create a high value-added economy.

During the reform, it is intended to consolidate all state functions related to the promotion of innovation and business into one agency. They are currently performed by several institutions – the Science, Innovation and Technology Agency (MITA), Versli Lietuva and the Lithuanian Business Support Agency (LBSA). Versli Lietuva and LBSA will be merged into one new agency. This is scheduled for the first half of next year.

‘The reform will help Lithuania to ensure a coherent system of innovation promotion and its development, create conditions for the breakthrough of our country’s companies at the international level and increase their competitiveness. Concentrating innovation promotion functions into a single agency will help to make better use of available state resources, create an efficient one-stop shop model for business and reduce administrative costs. I have no doubt that the Lithuanian economy will soon benefit from these changes’, said Aušrinė Armonaitė, Minister of Economy and Innovation.
It was decided to create the new agency following the recommendations of the European Commission and the Organisation for Economic Co-operation and Development (OECD).

These institutions have repeatedly pointed out that the Lithuanian innovation policy system is too fragmented, and support is difficult to access. Therefore, the Innovation Agency will help to avoid fragmentation by becoming the single body responsible for the development of the whole innovation ecosystem and all stages of innovation from idea development to product launch. The establishment of the Innovation Agency is expected to save around EUR 1.8 million per year.

The Innovation Agency will have the status of a public body and will be directly subordinated to the Ministry of Economy and Innovation. This will allow for a flexible implementation of functions related to the promotion of technology and innovation. The joint agency will continue to perform the functions of the current agencies operating separately, such as export promotion and business advice.

Innovation reform should also boost exports of high value-added goods and services. It currently accounts for around 14% of Lithuania’s total exports, which is expected to double by 2030 thanks to innovation reform. The reform is expected to boost the productivity of the country’s enterprises and will reach the EU average by 2030.

Cooperation between science and business will be strengthened, with more funds allocated to research and experimental development. Priorities for innovation development in Lithuania are expected to focus on biotechnology, advanced manufacturing, and information and communication technologies.

Information from the Ministry of Economy and Innovation

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