With three unicorns and the region’s best business environment, Lithuania rivals much larger economies.
Lithuania does not accept mediocrity. With barely 2.8 million people, the country has produced three unicorns—Vinted, Baltic Classifieds Group, and Nord Security—and hosts over 1,000 start-ups concentrated in B2B ICT, fintech, cybersecurity, health, and gaming. It ranks 19th globally in StartupBlink’s ecosystem rankings, second in Eastern Europe after Estonia and ahead of Czechia. This represents a remarkable achievement for a country whose population barely exceeds that of metropolitan Chicago.
Marketing and sales leads the sectoral breakdown, ranking 15th globally and second in Eastern Europe with 49 start-ups. Vilnius remains the primary hub, though Kaunas is rising through Kaunas University of Technology and its KTU Startup Space incubator. Public support includes accelerators, VC funds, and regulatory sandboxes from GovTech and the Bank of Lithuania, creating an environment where experimentation is encouraged rather than stifled.
Lithuania expanded scale-up financing in 2024, preparing the 40 million euros Early Stage and Development Fund III and 20 million euros Accelerator3, with investments beginning in 2025. Accelerator2 has already supported 74 SMEs, mobilising 7.4 million euros. The Co-Investment Fund, topped up with EU funds, has backed 49 SMEs with 24.6 million euros since 2018. These are not trivial sums for a small economy, demonstrating genuine commitment to nurturing high-growth firms beyond the seed stage.
According to the Digital Economy and Society Index (DESI) 2025, digital public services for citizens scored 87.86 in 2024, above the EU average of 82.32. Business-facing services reached 92.5, well above the EU’s 86.23. Cross-border services for citizens scored 80.13 versus the EU’s 71.28. ICT specialists comprise 5.3 per cent of employment, above the 5 per cent EU average, with Lithuania growing 8.2 per cent in 2024, outpacing the EU’s 4.2 per cent. Female ICT participation, however, fell from 20 per cent in 2023 to 18.2 per cent in 2024, below the EU’s 19.5 per cent—a troubling reversal requiring attention.
Reinvantage’s IT Competitiveness Index places Lithuania fourth out of 32 countries, below Poland by just 0.60 points and above Latvia by 0.34 points. The country ranked third last year. Cyprus’s inclusion pushed it down one position, meaning Lithuania held steady amongst the original cohort. Performance is outstanding in Business Environment (first) but weaker in Future Technologies and Economic Impact (10th in both).
The underlying metrics tell an impressive story. Average gross ICT salaries stood at 3,981 euros in 2024, representing 55 per cent growth since 2020—roughly matching the 56 per cent economy-wide wage growth, indicating a mature, established sector. ICT employment reached almost 71,000 in 2024, representing staggering 80 per cent growth since 2020, whilst total employment grew just 7.8 per cent. ICT’s share of employment surged from 2.89 per cent to 4.84 per cent, well above regional averages.
Students in ICT-related fields grew 13.8 per cent between 2020 and 2024. Graduates increased 21.4 per cent, though as in Latvia, the divergence suggests peak interest may have passed. ICT services exports rose from 1.89 per cent of GDP in 2020 to 3.27 per cent in 2024 without rollbacks. Value added climbed from 3.73 per cent to 4.84 per cent, also without fluctuations. The ICT sector has become an increasingly vital part of Lithuania’s economy, demonstrating consistent, sustainable growth rather than boom-and-bust volatility.
Lithuania proves that small countries can compete globally if they create the right conditions. Whether it can maintain momentum as larger neighbours catch up remains to be seen. For now, the Baltic overachiever shows no signs of slowing down.
You can find out more about Lithuania’s tech sector, as well as those of 31 other countries, in the Reinvantage Future of IT 2026 report.
Photo: Dreamstime.