Innovation Europe > News > Innovation EU Vol1-1 > Latvia

The substantial reduction of all public expenditure in 2009 has considerably endangered implementation of a range of R&D and innovation support measures and further advancement of innovation policy as a whole. While according to the EIS, Latvia is enlisted among the catching-up countries in terms of its innovation performance, it is still well below the EU-27 average.

So far the national innovation strengths of Latvia have been based on its strong tradition and R&D potential in a range of research fields, well-educated people, its recent move towards wider awareness and promotion of innovation as a crucial source of economic development and dedication to implementation of the Lisbon strategy. Nevertheless, the desirable progress has been hampered by weak industry, underdeveloped system of small and medium-enterprises (SMEs) featuring low innovative capacity, limited transfer competence of R&D institutions as well as lack of needs-orientation of innovation-service suppliers and limited number of appropriate financial instruments to support innovation-based growth.

Main innovation challenges

• Enhancing innovative capacities of the enterprise sector.
• Ensuring sufficient supply of science and engineering workforce.
• Facilitating innovative activities in the regions.

Action

Several comprehensive initiatives are underway, including the newly launched initiative on the development of the monitoring system of national innovation policy by the Latvian Investment and Development Agency and a major evaluation of Latvian research to have a far-reaching impact on the distribution of research funding initiated by the Latvian Council of Science. This could both provide an inventory of the current capacities as well as a more structured and evidence-based approach to innovation and R&D policy-making. Additional future policy actions include:

Introduction of tax incentives for innovation, technology transfer and R&D in order to broaden the profile of the current policy mix. Inclusion of the service sector under the common framework of innovation policy and thereby among the potential beneficiaries of the related innovation support measures.

Elaboration and implementation of a comprehensive system of legal provisions and financial incentives for the enforcement of intellectual property rights by both public and private R&D organisations.