Once part of the USSR, the three Baltic countries - Lithuania, Latvia and Estonia - are today distinguished by their openness to innovation and the growing number of technological initiatives that are gaining international recognition, writes Agence France-Presse.
Although the population of the three Baltic countries is just over six million people, last year about 33,000 startups were registered on their territory. Of these, 17 are so-called unicorns - companies with a market valuation of more than 1 billion US dollars, according to data from “Lursoft IT“ (Lursoft IT) - a company specializing in business and financial databases.
Among These world-renowned technology companies are “NordVPN“, “Vinted“, “Bolt“ and “Skype“.
Free entrepreneurship
After regaining their independence in the early 1990s, the three countries inherited outdated and inefficient economies. Paradoxically, this is precisely what unleashed the strong entrepreneurial spirit that had been suppressed by the planned economy until then and stimulated innovation, experts emphasize.
The underdeveloped communications infrastructure in Estonia favored the emergence of “Skype“. It is the first Estonian “unicorn“ and probably the most famous.
Founded in 2003 by Founded by two Scandinavian entrepreneurs in partnership with four Estonian developers, Skype had 50 million registered users worldwide in 2005 when it was sold to online auction platform eBay for around $2.6 billion. The company was later acquired by Microsoft and the platform was shut down last year.
This global success paved the way for an entire local technology ecosystem, and the accession of the three Baltic countries to the European Union in 2004 further facilitated their access to international markets.
“Skype Mafia“
The influence of these creators of the first wave of technology companies goes far beyond their commercial success. The phenomenon known as the “Skype Mafia“ shows how former employees and founders are investing their experience and capital in new companies, creating a virtuous circle for the development of regional innovation.
Estonia, with a population of just 1.3 million, currently has 10 operating “unicorn“ companies - the highest number per capita in Europe.
In Lithuania, the second-hand clothing sales platform “Vinted“ plays a similar role.
After becoming a “unicorn“ in 2019 and reaching a market valuation of $8 billion by 2025, “Vinted“ is making a significant contribution to strengthening the entire startup ecosystem in the country.
Today, startups create thousands of highly skilled jobs, pay high salaries, generate tax revenues and attract foreign investments.
This success is also due to the development of a strong system of science and technology education.
Students from the Baltic countries in the STEM fields (science, technology, engineering and mathematics) achieve better results than their peers in France, Sweden, the United States and Norway, according to the latest PISA study by the Organization for Economic Cooperation and Development (OECD).