Low-tech sector performance in Lithuania

Abstract

OECD industry classification distinguishes four industrial groups in the manufacturing industry: high-tech, medium high-tech, medium low-tech and low-tech. Low-tech industries are deemed to be those that add little value to a country's economy and are less competitive, though recent studies in different countries show that they may be innovative and knowledge intensive ones. In the paper we aim to show what role low-tech industries play in Lithuanian manufacturing industry and the economy. Therefore the main aim of the paper is to make a comparative analysis of Lithuanian industries' data and reveal low-tech's contribution to Lithuanian manufacturing sector and the economy. For the analysis we use data from the Lithuanian Department of Statistics (Statistics Lithuania) and other data bases for the year 2010-2011. We base the comparative data analysis of different industrial sectors mainly on the set of indicators proposed by Laestadius, Pedersen & Sandven (2006) and use additional one of orientation to export. The analysis showed that low-tech industries make a considerable contribution to Lithuanian manufacturing industry sector and is important to the whole economy, as well.