EUR 150 million for the digitalisation of industry
From today, industrial companies can apply to INVEGA for loans under the stimulus financial instrument 'Pokytis'. Approximately EUR 50 million is earmarked for enterprise digitisation projects in the Central and Western regions of Lithuania. EUR 99 million is for businesses in the Capital Region. This funding aims to help accelerate the modernisation of Lithuania’s industrial sector and increase business competitiveness and productivity.
Aušrinė Armonaitė, Minister of Economy and Innovation: ‘We are growing and strengthening our country’s businesses by investing in the automation of industrial production processes, robotic systems and digitisation technologies. This will ensure that business becomes more innovative, competitive and resilient to challenges.’
Aistė Masiulionienė, INVEGA’s Chief Project Officer: ‘Modern technologies come at a high cost, and many companies have limited access to external financing, but these investments pay off quite quickly, and a company can expect a loan of up to EUR 10 million, with a loan period of up to 10 years.’
The industrial plant of the future is a factory where only digital technology does the physical work. The factory can decide how much to produce, what to produce, when to produce it and for whom. The insights of the Finnish researchers in their study ‘Industry 6.0’ clearly illustrate that this is not a utopia.
Artūras Jakubavičius, Head of the Innovation Support Services Department of the Lithuanian Innovation Centre: ‘Trends show that Lithuanian industrial companies are currently investing heavily in ‘soft’ digital technologies: software and other related equipment (e.g. smart sensors and controllers), which allow them to manage their business processes more effectively. However, while investment in ‘hard’ digital technologies (e.g. robotics) is growing, we are still lagging far behind. In terms of the number of robots per employee in industrial companies, Lithuania is more than five times behind the EU average and tens of times behind the leaders. Therefore, this measure aims to stimulate investment in ‘hard’ digital technologies.’
Companies can expect up to 75% of the financing of an investment project, while 25% of the financing will have to be contributed by themselves or other, private investors. Several loans may be granted to a single borrower, but the total amount of the loans may not exceed EUR 10 million.
Investment in ‘hard’ digital technologies (e.g. robotics) is growing, but we are still lagging far behind. In terms of the number of robots per employee in industrial companies, Lithuania is more than five times behind the EU average and tens of times behind the leaders.
According to Jakubavičius, digitisation is not a silver bullet, but it is one of the key conditions to remain competitive. The results of a survey of Lithuanian industrial companies conducted in 2023 show that as many as 91% of companies are planning to invest in the digitalisation of business processes. Among them, as many as 80% of companies indicated that investments in digitisation will be directly linked to modernising or upgrading the efficiency of production processes.
Jakubavičius: ‘Of course, not all companies have the same level of investment. Larger companies are more likely to invest in digitalisation, as they have more potential and can more easily attract investment from banks. Decisions to invest in the digitalisation of production processes are strategic, as the return on investment is often only expected after 7-10 years. So not all sources of investment are suitable, and long-term instruments are needed. The financial instrument “Pokytis” is likely to fill this gap’.
It is planned that INVEGA will be available for funding until the end of March 2029, or until all the foreseen funds are exhausted. The 'Pokytis' (Change) incentive is funded by the European Regional Development Fund. It is planned that large industrial companies will be able to apply for funding starting at end of Q2, 2024.
