The foundations of a startup ecosystem are not laid in venture capital funds or accelerators, but in school classrooms—where the first analytical skills are developed and curiosity and creativity are nurtured. While Lithuania demonstrates strong innovation potential, a growing number of education and economic experts agree that the conditions of early education are what ultimately determine a country's long-term competitiveness. In this context, the quality of education in the regions becomes a critical factor that will influence whether Lithuania remains a creator of innovation in the future.
Discussions about startup ecosystems typically focus on venture capital, talented founders, or the regulatory environment. Increasingly, however, attention is being drawn to the fact that the foundations for future innovation are built much earlier—in schools, where students develop their mathematical, technological, and problem-solving skills.
Growing Interest in Technology – Can the Education System Keep Up?
Last year, a record number of high school graduates took Lithuania’s national Information Technology matriculation exam—the highest figure in the past decade, with as many as 3,942 students sitting the exam. This reflects a growing interest in technology and signals the potential for significant progress in the years ahead.
However, according to Dovilė Dilienė, Director of bit&Byte, growing demand alone does not guarantee sustainable results:
“While young people’s interest in technology is increasing, the key question remains: can every child, regardless of where they live, turn that interest into skills that open the door to career opportunities? It is precisely this widening gap in the regions that we aim to bridge.”
Dovilė Dilienė
Education experts emphasize that ensuring consistent quality of education across the country remains a major challenge. Regional areas are more likely to face limited resources, a smaller pool of teachers, and fewer opportunities for students to develop advanced technological competencies.
“Analysis of research conducted by the Organisation for Economic Co-operation and Development (OECD) shows that innovation ecosystems cannot rely solely on exceptional talent. A strong overall skills base is essential—the larger the share of society equipped with solid analytical and technological skills, the greater the likelihood of generating new ideas and businesses,” says D. Dilienė.
Lithuania’s Talent Race Held Back by Internal Inequality
Across Europe, countries’ educational progress is most commonly measured through the OECD’s Programme for International Student Assessment (PISA), which evaluates the mathematical literacy, reading skills, and scientific literacy of fifteen-year-old students. On a global scale, however, the assessment is broader: it considers not only student achievement but also university rankings, innovation indicators, startup ecosystems, and the growth of high-value-added economies. In other words, what matters is not only what students learn today, but also how they will apply those skills in the future.
According to Gintarė Dzindzelėtaitė-Kelmelė, Director of the Devbridge Foundation, mathematical literacy plays a fundamental role in these rankings:
“Mathematical literacy is not merely the ability to perform calculations—it forms the foundation of logical thinking, problem-solving, and the ability to analyze complex situations. These competencies are essential in fields shaping the economy of the future, including artificial intelligence, engineering, finance, and science. Strong mathematics performance therefore signals not only high student achievement but also a country’s potential to develop innovators, creators, and decision-makers.”
G. Dzindzelėtaitė-Kelmelė
According to the PISA 2022 assessment, Lithuanian fifteen-year-olds scored approximately 475 points in mathematics, 472 in reading, and 484 in science. The OECD average across these subjects is 472 points, placing Lithuania around 24th–25th among the 81 participating countries. While the overall performance appears stable, it conceals a significant challenge: substantial internal inequality.
“Territorial disparities remain among the most pronounced challenges in Lithuania. Students in rural areas score as much as 71 points lower in mathematics than their peers in urban areas, compared with the European Union average gap of 46 points. This means that a student’s opportunities in Lithuania are still heavily influenced not only by their effort or abilities, but also by where they attend school,” says G. Dzindzelėtaitė-Kelmelė.
Regional Inequality: Unequal Starting Positions
One of the most significant challenges facing Lithuania’s education system remains the pronounced achievement gap between students in urban areas and those in the regions. According to PISA 2022 data, students in the city of Vilnius achieved an average mathematics score of 514 points, while students in smaller towns and rural areas scored an average of 435 points. This gap reflects not only differences in educational quality but also unequal future opportunities. Students growing up in the regions are less likely to pursue technology-related fields, continue their studies in STEM disciplines, or enter high-value-added sectors.
bit&Byte academy (foto M. Plepys)
This inequality is further exacerbated by a shortage of teachers. According to data from the OECD’s 2024 Teaching and Learning International Survey (TALIS), 61% of teachers in Lithuania are over the age of 50, compared to an OECD average of around 40%. In addition, more than 40% of educators are over 55 years old, and regional areas face a particularly acute shortage of STEM teachers.
“Such a situation directly limits students’ opportunities. When a teacher works across multiple schools or only on a part-time basis, students’ access to quality education in technology-related subjects is inevitably restricted,” says Dovilė Dilienė.
As teachers’ workloads continue to increase, educational continuity becomes more difficult to maintain. Students do not always receive sufficient attention or opportunities to deepen their competencies. Over time, this may further widen the gap between urban and regional areas and reduce the number of potential innovators.
According to D. Dilienė, OECD analysis shows that innovation ecosystems cannot rely solely on individual talents—a sustainable breakthrough requires a strong overall skills base across society.
bit&Byte academy
Lithuania’s Competitiveness Depends on Preserving Human Potential
Lithuania stands out for the strong alignment between young people’s education and labor market needs. However, this advantage may prove temporary if strategic educational challenges are not addressed. The country faces a real risk of falling into the so-called middle-income trap, where economic growth slows due to insufficient productivity, innovation, and high-value-added skills. The only sustainable solution is targeted and consistent investment in education.
“To remain competitive, Lithuania must strengthen the entire education pipeline—from early childhood education to higher education—while placing particular emphasis on regional areas. It is here that significant untapped potential exists, and unlocking it could become a key factor in avoiding the middle-income trap,” notes Gintarė Dzindzelėtaitė-Kelmelė.
Experts in non-formal education agree that innovation emerges where a strong foundation of technological and analytical skills is developed—a result of sustained investment in education. Lithuania’s regions hold enormous potential, but unlocking it requires focused efforts: stronger STEM education, attracting and retaining teachers, and ensuring more equal opportunities for all students.
bit&Byte academy
In response to growing educational disparities, bit&Byte, in partnership with the Devbridge Foundation and the Tesonet Foundation, is expanding STEM education initiatives for children across Lithuania’s regions.
According to the partners, the program aims to ensure that high-quality STEM education, creativity development, and digital skills training are accessible to every child, regardless of their social or economic background. By providing scholarships that enable children to learn technology and develop critical thinking skills, the initiative seeks to reduce inequality and increase access to innovative knowledge, particularly in regional communities.
About bit&Byte Academy
bit&Byte is a creative technology academy for children and young people that develops technological skills, creativity, and critical thinking. Since 2025, the academy has been implementing a regional program aimed at ensuring equal opportunities for children throughout Lithuania.