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The future of High – Tech industries in Baltic

The future of High – Tech industries in Baltic. Vilnius, 2003 10 21. Alvydas Vitkauskas MicroLink group Country Manager, Lithuania. Why Baltic states need High–Tech?. Current low productivity of the economy Insufficient availability of labor resources and rising labor costs

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The future of High – Tech industries in Baltic

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  1. The future of High – Tech industries in Baltic Vilnius, 2003 10 21 Alvydas Vitkauskas MicroLink group Country Manager, Lithuania

  2. Why Baltic states need High–Tech? • Current low productivity of the economy • Insufficient availability of labor resources and rising labor costs • Competitive science potential and traditions • Relatively good quality of education

  3. State of Baltic IT industries • A lot of IT companies • 7 or 8 digit turnover numbers of major IT companies • Market increases at a rate of 10-15% annually

  4. Size of Baltic IT companies

  5. …same at different perspective

  6. The problem

  7. Challenges for Baltic IT sector • Dependence on local demand • Small size, fragmentation, low specialization and weak capital base • Low value-add efficiency compared to CEE or Nordic peers

  8. Cure: consolidation and innovation • Emergence of real pan-Baltic IT companies • Emergence of export oriented high - tech companies • Increased spending on R&D

  9. What’s more? • Facilitation of entrepreneurship • Financial support for new companies • Venture and equity capital

  10. How to create new Nokias? • Finnish funds invested 391 m EUR in 256 companies • Danish funds invested 283 m EUR • 50% of capital goes to High-Tech companies

  11. It means there are more than 200 new potential Nokias in Finland and Denmark alone

  12. EU funds for: • Low cost infrastructure for High-Tech enterprises • Substantial improvements in education system • Investments in R&D and applied science • Information and communication technologies for state and municipalities

  13. Case study: SAF Tehnika • A 18 m EUR Baltic company • Succesfully competes on global telecom equipmentmarket • The only really successful Baltic technology company

  14. SAF’s sales geography

  15. What to do next? • Facilitate R&D, use EU funding to do it • Facilitate entrepreneurship and provide infrastructure for new companies • Consolidate Baltic IT market to form capable IT enterprises

  16. Thank you!

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