Smart innovation and cooperation between entrepreneurs and scientists – the key to increasing productivity
Published: 25.02.2021
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To increase productivity and develop an innovative, knowledge-based economy, Latvia will have access to more than one billion euros in European Union (EU) support over the next seven years to promote research and innovation.
“The pace at which technology is currently developing is faster than businesses’ ability to adapt to it. The COVID-19 crisis is forcing us to reassess our priorities and find more effective solutions in various areas of life, made possible by modern technology. We must keep up with the times and make use of all the opportunities available to us, including those provided by EU financial resources in the field of research and innovation,” stresses Armands Eberhards, Deputy State Secretary of the Ministry of Finance (MoF) responsible for EU funds.
Although Latvia’s research and innovation system has significantly increased its efficiency and productivity over the past seven years, its innovation performance to date has been insufficient for rapid and smart growth. This is directly related to persistently low investment in research and development and innovation, including low private-sector investment in research and development compared with the EU’s older Member States.
The Ministry of Finance therefore emphasises the importance of EU funds and other foreign financial investments in creating innovation, stressing that these investments not only provide financial resources but also give entrepreneurs opportunities to cooperate with scientists in developing new and innovative products with high added value, thereby increasing the competitiveness of Latvian businesses and their opportunities to integrate into global value chains. At the same time, support platforms are being created for scientific institutions to commercialise their research.
By shifting the focus of the smart specialisation strategy towards support for ecosystems, improvements will be achieved in the research and development indicators recorded to date. This change in approach will unquestionably require significant adjustments from all parties involved; however, at a later stage it will bring about the planned changes in terms of increased investment in research and development, including by stimulating the private sector’s interest in investing in research and development.
The funding provided under the Recovery and Resilience Facility (RRF) plan to promote innovation and private investment in research and development amounts to 82 million euros, while the EU Funds Programme for 2021–2027 allocates total funding of almost one billion euros to the policy objective “A Smarter Europe”. This includes more than 50 million euros allocated to support measures for competence centres and clusters. Overall, investments under the EU Funds policy objective “A Smarter Europe” are aimed at an innovative and knowledge-based economic model, increasing productivity and driving digital transformation.
The draft Operational Programme for Latvia for 2021–2027 is available on the EU Funds website.
Source:
fm.gov.lv
Categories:
Economics;
