In 1971, Vilnius became one of five cities in the Soviet Union to built an enzyme factory, which was later followed by a research centre, giving a strong foundation to Lithuania's biotechnology industry. Today, it has become one of the fastest growing sector in the country, according to a press release Lithuanian Biotechnology Association (LBTA).
In 1962, the Soviet Union decided to start research and development of enzyme manufacturing and applications, and built five enzyme factories: three in Russia, one in Kazakhstan and one in Lithuania, in Vilnius.
The manufacturing technologies and equipment were brought from French companies Rapidas and Nordon. The construction of the Vilnius enzyme factory began in 1968 and finished in 1970, allowing operations to start in early 1971.
In the beginning, the experimental and manufacturing departments were making four products using technology bought from France: one enzyme breaking down proteins and three amylolytic enzymes to digest starch. Eventually, new products developed in USSR were added to the portfolio.
The scientific research centre was established in 1971 in the same factory and the head of biochemistry and biophysics department at Vilnius University, Antanas Glemža, was invited to manage it. In 1972, this research centre acquired the status of a central scientific research laboratory and became the foundation of the only Institute of Applied Enzymology in the Soviet Union, established in 1975. It was later renamed to the Institute of Biotechnology that is now part of the Life Science Centre at Vilnius University.
The Institute of Applied Enzymology was established to serve all USSR. Consequently, when Lithuania restored its independence in 1990, it was too large for a small country and part of its 800 scientists had to leave. The ones who stayed started setting up spin-off companies, and some of these – Thermo Fisher Scientific Baltics, Teva Baltics, Biok laboratorija, Biocentras, Biopolis – are still in Lithuania today.
For a decade after 1990, no new companies set up shop in Lithuania. Later, the growth of the biotechnology sector intensified.
Now, Lithuania is one of the leaders in Europe based on the economic importance of the biotechnology sector for the country – 0.38% of Lithuania’s GDP came from the biotechnology sector in 2013, compared to the EU average of 0.12%.
Last year, Lithuania‘s biotechnology sector grew by 87% according to LBTA’s data. Businesses in the sector generated revenues of close to 2 billion euros and contributed around 2.5% to the country’s GDP.
One employee of the biotechnology sector generated 780,000 euros of income in 2020 and 500,000 the year before. Overall, the revenues of Lithuania’s biotech sector have increased nine times in the last decade, from 226 million euros in 2010 to nearly 2 billion euros in 2020.
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