Disclaimer: The purpose of this paper is not to bad-mouth or point fingers but to shine light on what I think is the core problem blocking innovation in Lithuania. Only when you identify the core of the issue can you try solving it, right?
In this paper I will argue that the majority of problems in our country, especially the ones associated with innovation, are connected to a single denominator. My goal is to shine light and articulate that underlying problem, which I’m sure is at the back of your mind as well. Let’s try to raise it to the surface and start the discussion.
I think most Lithuanians (and foreigners who have lived here) would agree that there are many issues floating around our home country. Weak economy, corruption, foreign pressures, talent leak, emigration, etc. I could go on but that’s not the point. What’s interesting is that I think all these problems and many more are just symptoms of an underlying systematic misconduct.
It all comes down to this - We Don’t Invest In Great Talent.
Innovation happens when you give the right resources to talented people. Both startups and innovators have proved that. Even more, sometimes great people make stuff happen with marginal resources all together. That’s why it’s absolutely vital to find and engage with them.
Most innovators would agree that talent acquisition is the most important thing in building successful innovation.
Now, what do I mean by the Great Talent?
To my mind, and again I welcome debate on this, there are three main parts of a puzzle, which makes Great Talent: passion, domain knowledge and relevant experience (PDE).
So… Innovation happens when you assemble enough people with strong PDE and build them into action teams with a unifying goal.
However, finding the right talent is probably one of the hardest things to do. It requires resources, time and determination.
But most of all it requires a culture which appreciates the importance great talent and gives it the highest priority.
Current culture in Lithuania most often than not unfortunately has other priorities. We Don’t Invest In Great Talent but we are happy to waste time & money on…
In a country where it’s easier to fund-raise a few million of another building than raise a few hundred thousands to pay European salaries and facilitate suitable support structures for a group of great talent - innovation can’t really flourish.
We Don’t Invest In Great Talent!
We just don’t understand exactly how important it is because it’s not embedded in our work ethics.
Let’s get back to Lithuania/Estonia analysis and the startup world whilst keeping the previous thesis in mind.
Since 2005 Estonia has managed to strengthen its position as the leader in the Baltics both overall and in startup industry.
Key facts about Estonian startups:
I know what you might be thinking – “But they have Skype…”, “It’s only PR….”
Yes, Skype helped. Good PR helped.
But what’s going on in Estonia at the moment is a result of a coherent investment in Great Talent not a lucky fluke. Because it’s consistent and has logical sequence to it.
Several years ago in Estonia a revelation must have taken place when they understood that for a small country with limited resources there is no other option to become prosperous than fostering innovation and I assume startups seemed to be the cheapest way to do it.
So they’ve started building the local eco-system by acquiring great foreign and local talent with complimentary PDE. They’ve used the business network via Skype, Jon Bradford and many other influencers happy to help, to get in touch and acquire right talent. That’s how a smart startup would behave.
Don’t get me wrong. Estonia is not a perfect country. There is no such thing. However, what they are good in is prioritizing and focusing on what truly matter – People. Everything else follows as a result.
They were lucky enough to objectively evaluate their talent pool and understand that some positions will have to be outsourced in order to make sure that invested capital will achieve best possible ROI. They were comfortable enough to say: “We don’t have these people here. Lets find them elsewhere”. And they did. Afterwards everything what followed was logics and hard work, which equals to innovation.
To sum up, Lithuania is not innovating as well as Estonia because we don’t invest in Great Talent as much as we should.
I urge everyone to start looking at the Lithuanian startup eco-system as a startup itself.
Currently so many of us depend on a very few working for Enterprise Lithuania and other structures set up to create a foundation of Lithuanian startup eco-system.
With this paper my hope is to start a discussion on how should we change our approach to building the eco-system in order to make a leap and catch with the rapidly developing world.
We must make talent acquisition the priority and start taking everything from there. It’s a cultural paradigm, which we need to start changing together. And it’s not just startups. It’s society as a whole.
In my next post will focus on actionable solutions on how I think we can build an eco-system more efficiently starting people-first.
I hope these ideas will resonate with you guys and again I encourage sharing your thoughts on my blog or Facebook.
It’s been a while since I’ve blogged mainly because of an unexpectedly busy half a year. A lot of stuff has happened and I want to take a moment to reflect back on my experiences and off course take a look at what’s coming up next.
Reality 2 – Me 1. Let me explain.
During last half a year three significant events have shaped the path of my entrepreneurial career. Two failures and one success.
Reality 2 – Me 1.
What I would like to do is reflect point by point on why I think things happened the way they did. I hope that all of you who will hopeful read this have something to take away. Lets start with Pinevio.
Pinevio.com is a startup, which got more PR and press coverage than users traction. J Here is why I think it failed.
That’s why I’m super happy with experience I had with working on Pinevio along side my co-founder and wouldn’t change it for the world. I think failing your first start-up this way is probably one of the better ways to go. Fail harder, right?
Now, the Switch. The idea has failed because we didn’t manage to fund raise in time. Unlike the Pinevio failure, this wasn’t as rewarding or worthy of time invested mainly because it failed for subjective reasons which are rather obscure and would take a long time to explain properly.
However, there is one thing I know for sure. Lithuania needs a quality events and start-up orientated co-working centre because it will be the backbone structure for startup activity in the country.
I sure hope someone executes something similar. Otherwise we’ll definitely come back to this idea in the future.
OK. Finally – Startup Monthly Vilnius conference. That’s the success and I barely look back on it anymore.
Success is difficult to learn from because it covers up the small set backs on the way, which are worthy of analysis.
I think the main reasons for the success were:
All an all, it was super awesome. I remember the feeling I felt on the last day of the conference was similar to the one, when we’ve raised capital for the first time. It’s absolutely remarkable.
What’s even more astounding is that after 3 months of super-hard work our team became better friends then we were before, which is a dream for any leader.
Huge thanks to Mindaugas, Julius, Jonas, Egle, Ugnius and the amazing volunteers who made it happen.
Reality 2 – Me 1
So… what’s next?
I am coming back to startup mode. Hell yeah! Something I really love.
I’m now turning a new page in my career and look forward to meeting new people, startup teams and growing together.
So if you a getting together a great team or think that my skills would complement an existing one lets get together have some coffee and talk about it. I’m completely open.
It’s been a wild beginning of a long journey. Can’t wait for what’s coming up next.
Thanks for a half-year to remember.
All the best,