Lithuania: Pramonė 4.0

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1 Digital Transformation Monitor Lithuania: Pramonė 4.0 February 2018 Internal Market, Industry, Entrepreneurship and SMEs

2 Lithuania:Pramonė 4.0 Lithuania: Pramonė 4.0 istock.com Fact box for Lithuania s Pramonė 4.0 policy initiative Policy Lever(s) Bottom-up design and implementation; Equally orientated towards the integration of digital solutions, new technologies and skills; Publicly financed Funding Model Public funding is expected to attract private investments. Target audience(s) Industrial companies, enterprises and universities interested in digital solutions and new technologies. Concepts & Focus Areas Pramonė 4.0 supports the digitisation of industry, new technologies and standardisation in key strategic sectors of the Lithuanian economy. Key drivers Re-industrialise the economy; creation of public-private partnerships is essential; emphasis on the involvement of key stakeholders is crucial. Key barriers So far, the implementation process is running smoothly, without any specific barriers or complications. Implementation strategy A strategy document for the implementation of Pramonė 4.0 is under preparation. Expected outcomes Expected outcomes are to succeed in implementing the national digital transformation strategy and to increase Lithuania s global competitiveness. Budget Investments of 79,8 million EUR for the digitisation of Lithuania's industry for are foreseen. Uniqueness factor Multidisciplinary approach involving stakeholders coming from key industries, academia and business backgrounds. Value-added for policy-makers Cooperation and partnership facilitation, both at national and international level, throughout the entire process of implementation. Expected Impact Strengthening the digitisation transformation pillar, in particular manufacturing and industry transformation in Lithuania in the wake of the Fourth Industrial Revolution. Source: Digital Transformation Monitor 2

3 Lithuania: Pramonė 4.0 Executive summary challenges. At first, the Lithuanian The Pramonė 4.0 platform resulted from a bilateral German-Lithuanian Conference on Industry 4.0 held in Vilnius in May One year later, the Lithuanian Government officially launched Pramonė 4.0 aiming to increase and strengthen the competitiveness and productivity of the Lithuanian industry and to promote the integration of digital solutions and new technologies.¹ Following a bottom-up approach used for its design, the platform is implemented through a platform launched by the Ministry of the Economy of Lithuania. Key features of the Pramonė 4.0 platform include: - A dedicated team, including including stakeholders from business and industry to guarantee successful operations. - Thematic working groups that ensure smooth operations of the platform. - A coordination group in charge of discussing and analysing the information provided by the thematic working groups. - A Digital Innovation Hub that supports industries, in particular SMEs, by strengthening the integration of new digital technologies for business. Moreover, the Hub is essential for digital skills and strengthening Lithuania s digital transformation pillar. The National strategy for Digitising Industry The Lithuanian government has adopted a number of measures to respond to the country s digitisation Innovation Development Programme was established, focusing on strengthening the competitiveness of the Lithuanian economy through developing a model that promotes business innovation. In addition to the Innovation Development Programme, the government equally launched the Digital Agenda for the Republic of Lithuania and the Next Generation Internet Access Development Plan for The Digital Agenda focuses on motivating Lithuanian citizens to use ICT increasingly and to develop the broadband infrastructure in poorly developed areas. Following the Digital Agenda, the government introduced the Next Generation Internet Access Development Plan to further define the country s goals in the area of digitisation, e.g. by encouraging competition in the broadband market. The 2017 Digital Economy and Society Index highlights Lithuania s good performance in internet coverage in terms of fixed and mobile connection. While Lithuania is considered a digital transformation leader in the EU, digital skills remain a major challenge.² In order to keep pace with the digital revolution in Europe, Lithuania needs to invest more in further strengthening digital skills. Since 2016, industry, business associations and universities together have been working with the Lithuanian government to establish Pramonė 4.0. Thanks to the dialogue between business associations, industry and academia, all economic operators reached a common understanding of Industry 4.0 s potential. During a thematic working group meeting, the stakeholders addressed current challenges and futurerelated issues in the areas of digital manufacturing as well as services promoting digitisation, standardisation, etc. The group analysed and identified problems and proposed solutions, resulting in recommendations for the Lithuanian economy. Objectives of Pramonė 4.0 The Pramonė 4.0 platform was created as a strategy to advance national industry in the integration of digital solutions and new technologies as well as to lead the Lithuanian industry towards the 4 th industrial revolution.³ The platform aims to become a main tool for future dialogues between industry as well as public and academic organisations. Together these organisations will work on the common goal to find the most efficient means for digitising industry at national level. Furthermore, Pramonė 4.0 encourages all relevant industry stakeholders to play an active role in the implementation process. Therefore, stakeholders from industry and professional domains are well represented in the platform and mutually cooperate to build Pramonė 4.0. Pramonė 4.0 will accelerate production processes and stimulate industry growth, create modern jobs, and improve the quality of products and services. Mindaugas Sinkevičius, former Minister of the Economy. Policy levers for Pramonė 4.0 Source: Digital Transformation Monitor 3

4 Lithuania: Pramonė 4.0 The role of the Pramonė 4.0 groups In June 2017, the Ministry of Economy created thematic working groups as well as one coordination group. Thematic working groups including stakeholders from the private and public sector were set up to address current challenges of the Lithuanian industry and discuss future related issues in different areas, such as standardisation, the innovation ecosystem, digital manufacturing, services promoting digitisation pillars, cybersecurity, etc. The coordination group, on the contrary, was established in order to analyse the information provided by thematic groups, to coordinate their work and present a final proposal to the Industrial Competitiveness Commission. The Coordination Group includes representatives of ministries, associations, the scientific community and other stakeholders. Key drivers There are several main drivers which have supported the implementation of Pramonė 4.0 until now. The main driver lies in the impetus given to the platform by the Ministry of Economy to re-industrialise its economy. Following Germany s Industrie 4.0 example and a bilateral German- Lithuanian Conference on Industry 4.0 in May 2016, the Ministry of the Economy with the cooperation of stakeholders and the German-Baltic Chamber of Commerce worked on developing a concept aligned to the specific needs of Lithuania-based companies, thereby adding unique features and elements of their own. Another driver of the platform lies in the good cooperation between public and private sector stakeholders. They both share a common vision and objectives to advance the country s digital transformation. The establishment of thematic groups enables them both to cooperate and reach meaningful impact by digitising Lithuania. A bottom-up approach The Pramonė 4.0 platform follows a bottom-up approach applied in its design and implementation. Indeed, the Lithuanian government has launched a project team and created working groups to ensure the smooth implementation of the platform. In terms of financing, the use of public funds is foreseen in order to attract stakeholders from research and industry. In fact, stakeholder involvement is an essential element to ensure the development and success of the platform. The main idea behind the platform is to ensure that the necessary investments are made and strong public-private partnerships are built. Main activities of Pramonė 4.0 A first official meeting of the platform took place in August 2017 aiming to define the activities and plan their implementation. As a result of a first coordination group meeting hosted by the Ministry of the Economy. During the meeting, the National Industrial Competitiveness Commission defined the main directions of the National Digitalisation Platform activities. The composition of thematic working SWOT Matrix for Pramonė 4.0 Strength Establishment of thematic groups with members from the public and private sector ensuring a wide involvement of stakeholders with diverse backgrounds. Opportunities Establishment of new partnerships between industry, research and academia. Raising awareness of Lithuania s global competitiveness in digital. Source: Digital Transformation Monitor groups was equally established. Although the strategic implementation plan for Pramonė 4.0 was equally on the agenda, the outcomes were not yet revealed to the public. Expected results It is expected that the implementation plan for the platform will include awareness raising activities generating further interest in Pramonė 4.0 s activities. Moreover, the platform expects the establishment of a Digital Innovation Hub supporting businesses, in particular SMEs, in the deployment of new digital technologies. The Hub will also serve as an information source by providing all necessary data on the latest digital and manufacturing technologies at national and global level. Furthermore, trainings and conferences with international speakers will be organised in order to attract SMEs and digitise their businesses with new digital innovation solutions. Currently, the national press, internet media and social media are active in raising awareness concerning the platform. Weaknesses Low participation of small and medium size enterprises. No coherent strategy for raising awareness of the platform. Threats Diverging interests of members of thematic and working groups can slow down the implementation. Insufficient engagement of thematic groups 4

5 Lithuania: Pramonė 4.0 References 1 W. Mattauch (2017), Digitising European Industries - Member States Profile: Lithuania. Available online: m/files/ged/lt_country_analysis.pdf ² Digital Transformation Scoreboard 2017: Evidence of positive outcomes and current opportunities for EU businesses (2017) ³ Willyam Bradberry/Shutterstock.com 5

6 About the Digital Transformation Monitor The Digital Transformation Monitor aims to foster the knowledge base on the state of play and evolution of digital transformation in Europe. The site provides a monitoring mechanism to examine key trends in digital transformation. It offers a unique insight into statistics and initiatives to support digital transformation, as well as reports on key industrial and technological opportunities, challenges and policy initiatives related to digital transformation. Web page: This report was prepared for the European Commission, Directorate-General Internal Market, Industry, Entrepreneurship and SMEs; Directorate F: Innovation and Advanced Manufacturing; Unit F/3 KETs, Digital Manufacturing and Interoperability by the consortium composed of PwC, CARSA, IDATE and ESN, under the contract Digital Entrepreneurship Monitor (EASME/COSME/2014/004) Authors: Demetrius Klitou, Johannes Conrads & Morten Rasmussen, CARSA and Laurent Probst & Bertrand Pedersen, PwC DISCLAIMER The information and views set out in this publication are those of the author(s) and should not be considered as the official opinions or statements of the European Commission. The Commission does not guarantee the accuracy of the data included in this publication. Neither the Commission nor any person acting on the Commission s behalf may be held responsible for the use which might be made of the information contained in this publication European Union. All rights reserved.

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