Future Beyond the Capital: How Lithuania Aims to Attract Businesses to Its Regions

Lithuania is actively working to dispel the myth that its regions are economically stagnant, aiming to attract businesses with competitive salaries and high-quality living conditions. The national priority is to direct at least 30% of all investments into regional development, moving beyond a sole focus on the capital, Vilnius.

Former Economy and Innovation Minister Edvinas Grikšas highlighted that the perception of regional businesses as low-productivity or traditional agriculture-focused is outdated. He shared examples of companies in regions using advanced technologies like drones and artificial intelligence for crop monitoring, and employing sophisticated robotics in manufacturing, noting that many Vilnius-based companies could learn from their efficiency. Grikšas emphasized that the nation's overall strength depends on its weakest municipalities, making a singular focus on Vilnius short-sighted.

“

When you start actively visiting municipalities, that myth quickly crumbles. You go to a company that seems to simply grow vegetables or salads, but its productivity indicators are twice the European Union average. Drones and artificial intelligence are used there; it's recognized whether there's a lack of moisture by the color of the salad leaf. Another company has the latest robotics solutions, checking production with millimeter accuracy. This is a level of development that many Vilnius manufacturing companies could visit to gain experience.

Entrepreneurs operating outside the capital also point to significant competitive advantages. Augustinas Našlėnas, head of "Vandenis Media" in Gargždai, noted that while centralization is a common trend globally, regions offer unique benefits. He described Gargždai as a convenient location, akin to a distant micro-district of Klaipėda, ideal for living and business development. Našlėnas also mentioned the availability of real support for regional businesses, citing the Innovation Agency's "Spiečius" network, which provides management skills and co-working spaces across Lithuania.

The narrative is shifting towards regions becoming centers for high-value-added manufacturing and industry, rather than just sources of cheap labor. Gediminas Kvietkauskas, head of "EWA," a company trading agricultural machinery and technology, stressed that Lithuania is no longer competing on low labor costs. Instead, the focus is on companies generating significant added value, challenging the traditional view of regional economies and paving the way for balanced national development.

“

This discussion's title even provokes me a bit because life in the regions is already happening. We are certainly not thinking of moving anywhere else – regionality is vital to us. Moreover, Gargždai has a unique position – we joke that we are the most distant micro-district of Klaipėda, where it is extremely convenient to live and develop activities.