Translated using ChatGPT service.
In 2025, the Ministry of Economics’ (EM) budget allocates the majority—slightly over 61% of the total funding, or €122.8 million—for various support measures to enhance business competitiveness, attract high-value-added investments, support innovation, promote digitalization, increase energy efficiency, and foster export capacity. Together with ongoing and planned support programs, EU and state investments amounting to over €250 million will be available for businesses.
For innovation development in 2025, businesses will continue to have access to a range of Recovery Fund programs as well as EU structural fund support programs. A total of €89.7 million will be allocated for this purpose, supporting instruments for research and internationalization to increase private sector R&D spending, SME business incubation activities, venture capital investments, the development and commercialization of new products and services, as well as support for R&D project development and new product creation.
In addition to innovation development, the 2025 state budget of the Ministry of Economics allocates €10 million for the continuation of the Innovation Fund’s long-term research program and the creation of a new Innovation Investment Fund to support companies in implementing innovative ideas in various smart specialization fields. Startups, as key players in innovation, will also continue to receive support in 2025. This includes support for startup ecosystem NGOs to organize international-level events and provide consultations, with €400,000 allocated for this purpose in the state budget.
To promote business digitalization, €44.3 million from the Recovery Fund and EU structural funds will be available next year. This funding will support the digitalization of processes, the introduction of new products and services in business operations, including the implementation of modern automation, robotics, and workflow management tools in production, the development of employee digital skills, and loans with capital rebates for businesses.
To boost productivity and exports, as well as create new jobs, €73.3 million from the Recovery Fund and EU structural funds will be available in 2025. This support will include loans with capital rebates for the development of innovative products aimed at export markets, loans for investments and working capital, guarantees and portfolio guarantees, support for industry-specific adult education, start-up and growth loans for investments and working capital, as well as support for export promotion activities, company participation in capital markets, and tourism product development.
The 2025 state budget also identifies an additional €7.8 million for various export and investment attraction activities. These include organizing high-level business delegation visits abroad with industry representation, improving the quality and speed of foreign investor and export company services, and fostering foreign investment growth.
Investments to improve energy efficiency in businesses will continue under EU structural fund and Recovery Fund support programs. A total of €26.5 million will be available for the implementation of renewable energy technologies and more efficient use of energy resources. Additionally, in 2025, €21 million will be invested in modernizing Latvia's electricity transmission and distribution networks, enhancing business security and competitiveness in the coming years.
Significant investments of €16.6 million are planned for the development of Riga Freeport infrastructure next year. These investments will strengthen critical supply chains within the European Union, particularly for the development of offshore wind technology production.