‘We want more people to establish businesses and create new products and new jobs. The startup ecosystem is one of the drivers of Lithuania‘s economy. Last year alone, our startups attracted EUR 238 million in investments. Therefore, we are providing more opportunities for starting business in the regions as well‘, – says Aušrinė Armonaitė, the Minister of the Economy and Innovation.
For the purposes of the call for proposals, a startup is a micro or small enterprise with a high potential that was established no earlier than five years ago and the activities of which are based on innovation.
‘We have been facilitating the Lithuanian startup ecosystem for many years and we see that knowledge, consulting, mentoring and being within the same space with other innovators are all important for a startup from the very beginning. At present, approx. 70% of Lithuania‘s startups operate in Vilnius, however, we see a potential and wish to encourage establishment of innovative businesses in other towns and regions of Lithuania’, says Roberta Rudokienė, Head of Startup Lithuania, a division of the Innovation Agency.
The new measure will assist potential promoters of startups with innovative ideas to implement them by providing lacking knowledge and competencies during pre-acceleration and by encouraging sharing of knowledge and communication in the incubation period.
‘Startups are concentrated in the capital due to the highly developed infrastructure; still, we believe that Lithuania‘s regions can make a significant contribution to the growth and enhancement of the startup ecosystem. Therefore, by means of this call for proposals we seek to create more favourable conditions for their growth and establishment in the Central and Western Lithuania; we allocate funds for the development of products ideas by organising hackathons and by providing pre-acceleration and incubation services‘, says Giedrė Indriulienė, Head of Creative and International Investments Division of the Innovation Agency.
‘Such events encourage their participants to implement their innovative ideas and help people with different competencies and different experience to form teams; a team is a very important factor in the establishment of a successful startup. Those who already have a business idea will be provided with pre-acceleration services, the aim of which is to help refine the business model. In addition, startups in the Central and Western Lithuania will be able to use startup incubators where they will receive consulting and will be provided with premises for work with technical and office equipment‘, – emphasises Giedrė Indriulienė.
While startups operating in the Central and Western Lithuania are final beneficiaries in this call for proposals, they will receive benefits according to de minimis principle and cannot apply for funding.
Science and technology parks, open access centres, business incubators, business information centres and other entities are eligible for financing and can submit their project plans. In order to ensure quality of services to the startups, only projects submitted by entities that have gained experience, during the past five years, in activities related to pre-acceleration and incubation of startups or organisation of hackathons. Having received funding, the applicants will actively invite startups to get involved in project activities and develop innovative business ideas.
Eligible expenditure includes wages for personnel involved in the project, business trip and transport expenses in the Republic of Lithuania, maintenance of premises for project activities, purchase of necessary furniture, computer hardware and software and other equipment, acquisition (including on leasing basis), development and upgrading of other equipment, installations and other non-current assets as well as purchase of services such as formulation of business strategies and models, consulting, e-publishing, information on project activities etc.
Implementation of project activities must be started within 2 months after the date of signature of the project agreement and completed within 36 months but no later than by 1 September 2029. The project implementation plans will be assessed and ranked according to the criteria of benefits and quality. Funding will be allocated to the projects that are top ranked irrespective of submission date.
Project implementation plans can be submitted to the Innovation Agency by 18 September 2023. Detailed terms and conditions of this call for proposals are published on the website designated for the EU investments.
This measure forms part of an almost EUR 1 billion plan aimed to support Lithuania’s economy. By the end of 2023, approx. EUR 365 million have been allocated for business, innovation and investments, EUR 320 million – for digitalisation of the State and businesses, and EUR 268 million – for greener economy.
