Luxembourg’s economy: A thriving hub for innovation and growth

Luxembourg stands out for its open economy, central European location, dynamic startup ecosystem and highly international population. The country is an excellent base for business expansion across the EU market.

Innovative companies thrive in Luxembourg’s knowledge-intensive economy. The country is a hub for cross-border activities in fields such as space technologies, smart mobility, finance, advanced manufacturing, logistics and digital health.

A dynamic startup hub

Luxembourg’s vibrant startup scene is flourishing. Over 550 startups, focusing on areas such as digital, fintech, healthtech, creative industries, space and indutech, have found a home here.

Luxembourg differentiates itself from other larger hubs by offering personalised support to each startup. Young companies in Luxembourg benefit from a close-knit ecosystem where various players work seamlessly together and guide them to a wide range of specialists who can advise them at every stage of their journey. The local ecosystem also facilitates connections with large companies, investors, specialised advisors and other valuable partners. Taken together, these factors make Luxembourg an attractive destination for entrepreneurs looking to innovate and grow.

Luxembourg Philharmonie

Data-driven innovation

A common denominator for many companies in Luxembourg is the development and implementation of digital and data-based technologies. The country is shaping a data economy that fuels innovation, generates value, supports climate goals and benefits society at large.

For several decades, the country has invested in top-class digital infrastructure including high-speed, low-latency connectivity, 5G network and Europe’s highest concentration of Tier IV data centres. The business-oriented supercomputer MeluXina will shortly be complemented by an additional supercomputer optimised for artificial intelligence and a quantum computer. Luxembourg’s AI Factory stands out for its focus on providing businesses with practical solutions for adopting artificial intelligence structured support, accessible funding and top-tier expertise.

International business hub

Luxembourg is an attractive base for international trade and the ideal testbed for innovative products and services targeting the EU market. Renowned for its world-class financial centre – which has been pioneering innovation for decades – Luxembourg is a European hub for commercial space activities, a prime testbed for mobility innovation for the European market and a competitive intercontinental European logistics hub for value-added logistics.

The country hosts an R&D-intensive, highly automated manufacturing industry. Global innovators such as ArcelorMittal, Goodyear, Husky Injection Molding Systems and Webasto have chosen to set up global and regional headquarters, as well as innovation centres, in Luxembourg.

Learn more (link to https://luxembourgtradeandinvest.com/choose-luxembourg)

But that’s not all; Luxembourg has also become a hub for cultural exchange, attracting visitors from around the globe. This diversity is reflected not only in the country's business landscape but also in its tourism offerings, which blend a variety of cultural experiences, international cuisine, and a mix of historical and modern attractions. From multicultural festivals to scenic landscapes that represent both tradition and innovation, Luxembourg’s diverse economy enriches its tourism appeal, making it a destination that seamlessly bridges business and leisure.