The Startup Ecosystem of Luxembourg

Fortunately, the public sector is actively working to drive positive change through initiatives like Innovative Initiatives, which aim to enhance the country’s digital efforts and support startups. Programs like the House of Entrepreneurship provide practical business knowledge, while the 1-1-1 law streamlines the business registration process. Additionally, startups can receive coaching and seed funding through the Fit 4 Start acceleration program, managed by Luxinnovation and supported by the Ministry of the Economy. OCSiAI, Luxembourg’s first unicorn, has expanded globally, with offices in Europe and the United States.

Luxembourg is making strides in advancing its space tech industry, being the first in Europe to establish a legal framework for the sector. Deep tech industries, including space, are being targeted, with organizations like ESRIC fostering innovation and the emergence of startups like Kleo Space. Data-driven innovation is also thriving, supported by the country’s exceptional digital infrastructure, including the high-performance computer MeluXina.

With its skilled workforce, strong economy, and state-of-the-art digital infrastructure, Luxembourg is an appealing choice for startups looking to establish themselves in Western Europe. However, the country’s small size poses limitations to its growth potential as a regional hub. Initiatives like the EU TRIBE project aim to expand market access for local startups, but continued success will depend on further innovative government strategies to drive globalization.