How can Lithuania harness international talent to drive growth?

• Katsiaficas, Caitlin
• Segeš-Frelak, Justyna

ENHow to attract, develop, and retain talent has become a key issue for countries competing for their share of the global talent pool. The high level of competition currently seen in this area is due to the growing understanding that attracting talent will be key to addressing negative demographic changes – and that an injection of new talent is crucial for driving innovation and economic development. Indeed, a growing number of both national and local governments are joining the race for international talent, rolling out the red carpet with measures that include fast tracks to permanent residency and tax incentives and promotional campaigns that advertise their location as a talent-friendly destination. However, the attractiveness of a country or region for global talent is influenced by a range of factors, including job and future career opportunities, quality of life, inclusiveness, and the family environment, to name just a few, pointing to the importance of a strategic and comprehensive approach to talent policy. The case for talent attraction seems particularly striking in the case of Lithuania, due to its current and projected demographic and economic situation, linked mostly to a history of emigration that has affected the country’s competitiveness and growth. Despite the relatively buoyant national economy and growing wages of recent years, return migration to Lithuania has been on a much smaller scale than anticipated, resulting in a growing sense of urgency regarding the need to recruit talent more widely. As the consequences of emigration continue to manifest, Lithuania has undergone a gradual shift from ad hoc actions to strategic policy planning, viewing global talent as a largely untapped resource. Recent efforts have included both legislative changes and practical measures aimed at enabling international talent to more easily access the Lithuanian labour market. [Extract, p. 6]

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