To raise productivity and develop an innovative, knowledge-based economy, for the next seven years, Latvia will have support available from the European Union (EU) worth more than a billion euro for promoting research and innovation.
“Current speed of technological development is greater than the ability of companies to adapt. The COVID-19 crisis is forcing us to review priorities and find more effective solutions provided by modern technologies in various areas of life. We need to keep up with the times and use all the opportunities, including the opportunities that the EU financial resources give us in the area of research and innovation,” emphasises Armands Eberhards, Deputy State Secretary for EU funds at the Ministry of Finance (MoF).
Although over the last seven years Latvia’s research and innovation system has significantly increased its efficiency and productivity, previous innovation performance is insufficient for rapid and smart development. This is directly related to low research and development and innovation performance for a prolonged period of time, including low private investments in research and development, compared to the original EU member states.
Thus, the MoF is emphasising the importance of the EU funds and other foreign financial investments in creating innovations, stressing that such investments not only provide financial resources, but also enable entrepreneurs to collaborate with scientists to design new and innovative products with high added value, thus increasing the competitive capacity of Latvian entrepreneurs and their opportunity for integration in the global value chains. On the other hand, support platforms for scientific institutions are created for commercialisation of research.
Changing the focus of smart specialisation to support of the ecosystems will improve previous research and development results. A change of approach for all the parties involved will definitely require significant reorganisation; however, at a later stage it will bring planned changes to the situation with the growth of research and development performance, including the stimulation of the interest of the private sector to invest in research and development.
The funding provided for in the Recovery and Resilience Facility (RRF) Plan for promoting innovation and private investment research and development amounts to 82 million euro; whereas the total EU funding provided under the action programme for the 2021-2027 policy aim “Smarter Europe” is almost one billion euro. The funding planned for the competence centre and cluster support measures is more than 50 million euro. Overall, the investments in the framework of the EU fund support policy aim “Smarter Europe” are aimed at an innovative and knowledge-based model of economy and at improving productivity and digital transformation.
The action programme project for Latvia for 2021-2027 (in Latvian) is available on the EU fund website. The draft RRF plan (in Latvian) is available for review to anyone interested on the MoF website and the EU fund website. Comments and proposals regarding the draft RRF plan and appendices thereto can be submitted in an electronic form by March 9 this year to the email address: rrf@fm.gov.lv.
