Learn more about Central & Western Lithuania

Central & Western Lithuania

  • A strategically located, economically diverse region home to 1.8 million people and a key engine of Lithuania’s growth
  • Brings together key urban centers such as Kaunas, Klaipėda, Šiauliai, and Panevėžys.
  • It benefits from strong physical connectivity, including access to the Baltic Sea via Klaipėda Seaport, major rail infrastructure such as Rail Baltica, and an extensive road network

Economic Strenghts

A diverse industrial base drives the region’s economy, led by:

  • Manufacturing (machinery, electronics, food, furniture)
  • Transport & logistics
  • Construction & energy

The region excels in food production and hosts key energy-intensive industries such as cement, chemicals, fertilizers, metals, and food & beverage manufacturing.

Key hubs:

  • Kaunas FEZ
  • Klaipėda Port
  • Panevėžys Industrial Park

Priorities of the regional RIS3 strategy

Health Technologies, Biotechnologies, and Sustainable Food – molecular tech, diagnostics, safe food

New Production Processes, Advanced Materials, and Energy Efficiency - materials, Industry 4.0, renewables

Communication Technologies (ICT) - AI, IoT, cybersecurity, digital transformation

S3 priorities guide the region’s transition toward a green, resilient, and tech-driven economy, strengthening links between research, industry, and policy.

Main RTOs / R&D Centres

  • Kaunas University of Technology (KTU)
  • Klaipėda University, the Lithuanian
  • Energy Institute
  • Panevėžys Mechatronics Center

GreenStep contributions

  • Strengthened cross-regional collaboration and peer learning in industrial decarbonization
  • Access to best practices and innovation pilots for green transition
  • Enhanced stakeholder coordination and involvement in European-level initiatives
  • Support for S3 implementation through applied innovation
  • Capacity building for SMEs, clusters, and RTOs in green transformation pathways
  • Increased policy visibility and impact on regional and EU green industrial agendas

Priority areas of interest

  • Decarbonization technologies and clean energy integration
  • Digitalization and Industry 4.0 applications
  • AI-enabled energy management
  • Industrial symbiosis and circular economy models
  • Advanced materials and additive manufacturing

Innovation achievements

  • 1. Kaunas – Lithuania’s 2nd largest city is a vibrant hub for diversified manufacturing, with leaders in automotive (Continental, HELLA), electronics (Kitron), plastics & Chemicals (Retal), textiles (Audimas) and furniture
  • 2. Klaipėda Port is pioneering green logistics with: Shore-side electricity systems and green hydrogen & offshore wind projects.
  • 3. 3. Innovation Networks:
    LINPRA promotes digital transformation and Industry 4.0.
    EDIH4LT (KTU) drives industrial digitalisation.

Strengths:

  • Diversified sectors (chemicals, cement, fertilizers, steel, glass, food)
  • Strong innovation practices (95 stakeholders)
  • Well-established clusters and innovation hubs
  • Dominance of large enterprises (63 entities)

Weaknesses:

  • Limited environmental transparency (CO₂, energy)
  • Skilled labor shortages
  • Aging industrial infrastructure
  • Regulatory complexity identified by 89 entities

Opportunities:

  • Green transition (renewable energy, hydrogen, circular economy)
  • Digital transformation via EU-funded initiatives
  • Cross-sectoral and interregional collaboration

Threats:

  • Regulatory compliance costs
  • High market volatility and geopolitical risks (import dependency)
  • Demographic decline and brain drain
  • Establish a Regional Food Innovation & Sustainability Taskforce
  • Integrate F&B priorities into national green and digital strategies
  • Launch the Food Energy Intelligence Dashboard
  • Establish KPIs and Midterm Evaluation
2027
  • Expand AgriFood Lithuania DIH and Innovation Clusters
  • Support 10 SMEs Adopting Advanced Technologies (AI for Predictive Maintenance, Digital Twins)
  • Launch 3 Innovation Pilots Under Horizon Europe or EIT Food Programs
2028
  • Expand Food Sector Carbon Accouting Tools
  • Train 50 SMEs in Carbon Footprinting and Emissions Reporting
2029
  • Implement the Green Food Processing Upgrade Scheme
  • Support 100 Food Producers by 2030, Achieving 25% Energy Reduction in Processing
  • Modernize Rural Energy Infrastructure
  • Promote Smart Cold Chain Logistics
2030
  • Green Skills Acceleration Program: Train 200 Workers in Energy-efficient Food Processing. Food Traceability and Digital Compliance, Carbon Reporting and Eco-Labelling
  • Integrate These Modules Into Vocational Programs in Kaunas and Klaipéda
2031
Central & Western Lithuania
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Central & Western Lithuania