By Dr Helga M. Kauzonė, Vice-Rector for Research, Kazimieras Simonavičius University

Lithuania is increasingly recognising that national progress and global competitiveness depend on our ability to generate, develop, and commercialise scientific knowledge and innovation. Yet, the biggest barrier to meaningful innovation remains the disconnect between science and business. Although innovations are emerging, many stall early due to a lack of mechanisms for successful commercialisation.

To address this, Kazimieras Simonavičius University (KSU) has launched the Institute for Research and Innovation (IRI) – a central platform linking strategic research, inter-institutional collaboration, and practical solutions for the knowledge economy.

The IRI: Beyond the Traditional University Model

The IRI is not just another academic centre. It is a forward-looking initiative designed to build a responsive, interdisciplinary, and future-oriented research infrastructure. Its mission: to tackle global, national, and sector-specific challenges head-on.

The Institute brings together diverse research clusters – from health and longevity engineering to digital trust, regional resilience, and the space economy. Each cluster unites researchers, lecturers, students, and industry partners to generate both scientific knowledge and real-world value.

KSU’s creation of the IRI marks a shift from fragmented research efforts to a truly integrated knowledge ecosystem.

Progress Is Underway – But Still Falls Short

While there has been tangible progress – with increased investment in R&D and growing strength in sectors like biotechnology and lasers – innovation commercialisation remains sluggish.

Unfortunately, R&D funding from both public and private sectors is still too limited to deliver breakthrough results. Enthusiasm alone won’t suffice; what’s needed is consistent government policy, structural investment, and coordinated leadership.

According to recent data from the Ministry of the Economy and Innovation, Statistics Lithuania, and the EU Innovation Scoreboard:

• Lithuania’s R&D expenditure reached 1.07% of GDP in 2023, still far below the EU average of 2.22%
• Business investment in R&D declined from 0.50% in 2022 to 0.45% in 2023
• Government funding for R&D stands at 0.33% of GDP, compared to the EU’s 0.72% average
• Lithuania climbed to 18th in the EU Innovation Scoreboard, with a +3.7 percentage point increase, outpacing the EU average growth of +0.6 pp
• Venture capital investment is at 137.6% of the EU average, growing +17.3% year-on-year

R&D Must Become a National Priority

R&D is not just the domain of universities – it is a pillar of national development. In today’s knowledge-driven economy, strengthening R&D must be recognised as a strategic national priority.

Initiatives like KSU’s IRI show how universities can act as practical innovation platforms, where research, student engagement, and business partnerships lead to tangible technologies and services.

Unlocking Regional Potential

It is critical that these knowledge ecosystems are not concentrated solely in Vilnius. Lithuania’s regions hold vast untapped potential – often lacking strong research institutions or the means to leverage them effectively.

Regional knowledge centres can serve as local innovation hubs, linking businesses, public institutions, and academic partners. By focusing on local industry profiles, economic activity, and community needs, these centres can drive locally applied innovation that directly benefits surrounding communities.

Four Strategic Pillars for Strengthening R&D in Lithuania

1. Increase Public R&D Funding
   Target: 2% of GDP by 2028 – moving closer to the EU average.
   Impact: Empower universities to create patentable innovations and improve access to international funding.
2. Boost Private Sector Investment
   Expand tax incentives and simplify application processes for R&D support.
   Focus: Medium-sized enterprises, currently the least active investors.
3. Establish Regional Knowledge Clusters
   Create regional “knowledge nodes” that partner with national and international stakeholders to develop applied, locally relevant innovations.
4. Improve Inter-Ministerial Coordination
   Align government departments in shaping innovation funding, and integrate research outcome monitoring into national reform agendas.

From Theory to Impact: A Call for Collective Action

Science without business remains theory. Business without science risks stagnation. But together, they spark progress.

To bridge the R&D gap, Lithuania needs more than good intentions – it requires a systemic commitment backed by funding, institutions, and political will. Only then can innovation truly take root and flourish.