Lithuania launches €300 million ‘Vytis’ initiative to boost defence industry

By Defence Industry Europe

Lithuania has already received all the ordered Vilkas infantry fighting vehicles (the Lithuanian variant of the Boxer vehicle). In total, 91 combat vehicles (89 serial vehicles and 2 prototypes) have been delivered, as informed by the Lithuanian Ministry of National Defence in a statement.
Photo: Lithuania Ministry of National Defence.

Lithuania has launched the 'Vytis' initiative aimed at strengthening its defence industry capabilities, promoting innovation, and increasing international competitiveness. The Ministry of the Economy and Innovation, in collaboration with the Innovation Agency, has allocated 300 million euros for the implementation of this ambitious programme.

 

Minister of the Economy and Innovation Lukas Savickas emphasised Lithuania’s strategic ambition to become a regional centre for the defence and security industry. ‘We want Lithuania to become a regional centre for the defence and security industry. “Vytis” will enable Lithuanian companies to develop, test and implement new technologies faster, opening the way to international markets,’ said the Minister.

The ‘Vytis’ initiative aims to unite all existing and emerging incentive systems related to the defence industry. It will serve as a one-stop-shop platform designed to reduce bureaucratic barriers and support companies throughout the entire innovation process.

Romualda Stragienė, head of the Innovation Agency, highlighted the comprehensive support offered by the initiative. ‘We will offer comprehensive support to companies: from consulting, financing opportunities and technology testing to promoting international cooperation. We will ensure that companies in the defence industry are subject to significantly shorter procedures, receive prompt consultations and are provided with funding for project implementation,’ she stated.

Currently, around 100 companies operate within Lithuania’s defence and security sector, a number that has increased by 18 per cent over the past three years. These companies contribute products, services, and components, leveraging a strong research base while aligning with both national and international innovation priorities.

The ‘Vytis’ initiative will focus on investments in all key stages of defence innovation development. This includes technology testing infrastructure, business incubation, skills development, and international cooperation. It also aims to boost Lithuania’s participation in global defence markets by facilitating participation in exhibitions, business missions, and international research projects.

Furthermore, the initiative addresses long-standing challenges faced by the industry, such as limited financing during early idea development, insufficient technology testing infrastructure, and gaps in export incentives. By leveraging Lithuania’s existing competencies in smart specialisation, the programme aims to address strategic defence and security priorities.

By 2030, the government aims to triple the export volume of the defence sector, attract at least five prominent foreign defence companies, and ensure that the added value of the country’s defence industry surpasses €1 billion.

 

Source: Ministry of the Economy and Innovation of the Republic of Lithuania.

 

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