The Lithuanian innovation system has undergone considerable restructuring and witnessed significant investment over the last decade. This has led to improvements in capacity and performance in the higher education and research system. On the business side, the economy remains largely dominated by lower value-added production and is weakly integrated in global value chains, despite a slight shift towards high-tech manufacturing and knowledge-intensive services.

Recognising these challenges, the Lithuanian government expressed interest in receiving support on two specific topics: cooperation between the public science base and business; and attraction of innovation-oriented foreign direct investment (FDI).The PSF activity was carried out from February to September 2017. It included fact-finding visits and consultations with key stakeholders. It was carried out by a group of high-level independent experts from Germany, Belgium, Sweden and the UK, assisted by the European Commission.

The expert panel proposed 13 specific recommendations grouped into three themes: strengthened foundations for the R&I policy support system, science-business cooperation, and innovation-oriented FDI. For each, the team set out the operational steps required and a time frame for implementation.