Unleashing the productive potential of digitalisation in Lithuania
Lithuania is digitalising its economy with visible success, but much scope remains
for the integration of advanced technologies. The COVID-19 crisis confirmed the importance
of digitalisation to sustain activity. Increased private investment in innovation
is essential to speed up digitalisation. The take-up of R&D tax incentives is low,
however, despite relatively generous provisions, and many smaller firms have not been
inclined to innovate. More effective public support for business R&D and stronger
research-business collaboration on innovation are important. There is also a need
to promote digital uptake, especially among smaller firms that lag behind. Improving
access to equity finance for young innovative firms, reducing remaining gaps in digital
infrastructure, along with better information on digital tools and how to use them,
can help smaller firms digitalise. The public sector too has to become more digitalised.
Addressing weaknesses in foundational skills through education reforms and responding
more effectively to labour market needs for digital skills would enable a wider adoption
of advanced technologies and higher productivity growth, while ensuring that the digitalisation
dividends are distributed fairly. Increased participation in adult learning, especially
among the less educated, is the way forward to adapt to increased job automation in
the digital era.
Published on April 20, 2023
In series:OECD Economics Department Working Papersview more titles