priorities of latvia in the field of innovation stakeholders’ seminar “eu strategy for the...
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Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Priorities of Latvia in the Priorities of Latvia in the Field of InnovationField of Innovation
Stakeholders’ seminar “EU Strategy for the Baltic Sea Region – Incentive for Innovative Entrepreneurship”
21.09.2011.
Juris PūceState Secretary
Ministry of Economics of the Republic of Latvia
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
ContentContent
Economic development trends
Economic challenges and policies for further growth
Innovation support activities
2
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Economic development of Latvia in the medium termEconomic development of Latvia in the medium termForecast of Latvia’s GDP (2004 = 100)
Rapid development scenarioRapid development scenarioin 2012-2015 average annual GDP
growth rate: 4.5%4.5%
Moderate development scenarioModerate development scenario in 2012-2015 average annual GDP
growth rate: 2%2%
3
Economic development trends Economic development trends (I)(I)
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
4
Economic development trends (IEconomic development trends (III))The economy has resumed growth, main driving force - exportsThe economy has resumed growth, main driving force - exportsSeasonally adjusted data, 4th quarter of 2005 = 100Seasonally adjusted data, 4th quarter of 2005 = 100
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Decomposition of Latvian exportDecomposition of Latvian exportss share share’s’s growth to the EU by using a permanent market growth to the EU by using a permanent market share analysis (%)share analysis (%)
-21,1%
+28,5%
5
Competitiveness has a major role in export growthCompetitiveness has a major role in export growth
+40,2%
58% 58% of exports growth was driven by increasing
competitiveness
45% of exports growth was driven by
increasing competitiveness
6% of exports decline was effected by decreasing
competitiveness
Economic development trends (Economic development trends (III)III)
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Economic development trends Economic development trends (IV)(IV)
Qualitative changes in Latvian export structure
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Share of BSR countries* hi-tech intra-EU exports in total exports, %Share of BSR countries* hi-tech intra-EU exports in total exports, %
Data source: Eurostat
Economic development trends Economic development trends (V)(V)
* except Germany
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Main elements for competitivenessMain elements for competitiveness......
Source: GCI
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Competitiveness of LatviaCompetitiveness of Latvia
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0Institutions
Infrastructure
Macroeconomicenvironment
Health and primaryeducation
Higher education andtraining
Goods market efficiency
Labor market efficiency
Financial marketdevelopment
Technological readiness
Market size
Business sophistication
Innovation
Latvia BSR, avr
Source: GCI
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Innovation support systemInnovation support system
Support for fundamental research and State research
programs
Support for participating in international research
programs
Support for applied and market oriented research
projects
Support for Technology transfer contact points in Universities
Competence centers
Business incubators – support for new innovative companies
Innovation and entrepreneurship motivation and awareness program
Support for development of new products and technologies
Development of research
infrastructure
Support for introducing of new products and technologies in
production
Support for high-added value investment projects
Venture capital and early stage funding (pre-seed, seed funds)
Development of commercial research
infrastructure
Activities to rise capacity of researchers and to attract new
researchers
Technology incubator (in development)
Ministry of Education and Science Ministry of Economics
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Key policy directions: To promote cooperation between enterprises
and researchers
To support development of innovative companies
To promote access to early stage finance
Innovation priorities in Latvia
Quantitative target of Latvia for expenditures on R&D is 1.5% of GDP in 2020
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Promotion of cooperation between Promotion of cooperation between enterprises and researchersenterprises and researchers
Goal: to bring together researchers and enterprises to implement common, knowledge-intensive industrial research and product development projects
6 Competence centres established (Transport and Mechanical Engineering; ICT; Pharmacy and Chemistry; Forestry; Electronics an Optics; Environment, Bio-energy and Biotechnology)
70 companies, mostly SMEs, involved in competence centres Financing from public resources: 56 MEUR, private co-financing: 30
MEUR
Goal: to encourage practical linkages between scientists and entrepreneurs and promote commercialization of state funded research
8 TTOs established at higher education institutions Financing from public resources: 2.75 MEUR
Technology Transfer Offices (TTOs)
Competence Centres (CC)
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Support for: Industrial research (aid intensity 50-70%) experimental work and prototyping (aid intensity 25-45%) production equipment acquisition (aid intensity 35 %) 188 contracts signed on ~45 MEUR
Support for: equipment purchase, industrial building construction or reconstruction (aid intensity 45 %) support for large-scale projects, min. amount 4.25 MEUR 27 contracts signed on ~84 MEUR
Funds available exclusively for “green technologies” development and introduction into production Norwegian Financial instrument financing – 11 MEUR Support available for ~ 100 companies
Support for development of Support for development of innovative companies (I)innovative companies (I)
Grants for development and introduction of new products and technologies in production
Grants for knowledge or technology-intensive high value-added investments
Smart technology fund NEW 2012
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Goal: to support development of new competitive and viable enterprises by providing them with appropriate business environment and business support services, e.g. infrastructure and consultations
10 BI established: 9 regional (296 enterprises) and 1 in Riga for creative industries (42 enterprises)
Funding: 28,7 MEUR (ERDF)
Goal: to motivate the wide range of society to start their own business and to develop innovations and use innovative solutions
Implemented by Latvian Investment and Development Agency Funding: 2,4 MEUR (ERDF)
Support for development of Support for development of innovative companies (Iinnovative companies (III))
Business incubators (BI)
Innovation and entrepreneurship motivation programme
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Access to early stage financeAccess to early stage finance
Goal: to improve access to venture capital and early stage financing to promote creation and development of innovative fast growing companies
Measures: Seed and star-up funds – financing for development of initial concept
or product development and initial marketing Venture capital instruments – financing for growth and expansion of
companies in order to help them to increase production capacity Mezzanine instrument – funding for companies in addition to bank
loans to cover the investment costs of the project New measures are developed:
Co-investment and Growth funds (from 2012) Planed outcome – at least 125 enterprises supported Funding – 87.5 MEUR (2011.-2013.)
Venture capital and seed money
Latvijas Republikas
Ekonomikas ministrijaMinistry of EconomicsRepublic of Latvia
Brīvības iela 55, Rīga, LV 1519Tel.: +371 67013101Fax: +371 67280882E-mail: [email protected]: www.em.gov.lv
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