The information was translated using the ChatGPT service.
During the Cabinet of Ministers meeting on July 13th this year, a new EU Structural Funds support program for the 2021-2027 planning period was approved for the innovative business development of small and medium-sized enterprises in Latvia. The program will be implemented by the Latvian Investment and Development Agency (LIAA). The total funding of the support program amounts to 73.38 million euros.
The purpose of the support program is to ensure the availability of financing for implementing business ideas and developing business in Latvia. It aims to promote activities focused on increasing the proportion of innovative merchants in the economy and promoting businesses aimed at creating high added value in the medium-high and high technology and creative industries sector, thereby increasing export growth in supported enterprises. This contributes to achieving the goals of the National Industrial Policy of the Latvian Smart Specialization Strategy.
Within the framework of the new support program, LIAA will implement three activities, adopting and continuing the best practices from the EU Structural Funds and Cohesion Fund programs for the 2014-2020 planning period.
Innovation Motivation Activity: Its goal is to promote the emergence of new technologically intensive companies, motivating them to create and develop products and technologies with high added value. The total funding for this activity is 4.82 million euros. Within the framework of this activity, LIAA will organize innovation and entrepreneurship promotion events, initiate new partnership and collaboration projects, and implement training programs focused on business and innovation development.
Business Incubation Support: The objective is to incubate newly created technologically intensive and creative industry companies, emphasizing the research and development component. The total funding for this activity is 37.96 million euros. Within its framework, merchants can receive grant support for starting a business, including services for business development, renting space, prototyping and technology development, purchasing manufacturing equipment and devices, purchasing raw materials and primary materials, and paying for the state-specified minimum monthly salary and related taxes and fees for one employee for a 12-month period. Additionally, within the framework of this activity, LIAA will provide pre-incubation support to merchants, organize business and export promotion events, and promote collaboration with organizations. In total, LIAA representations or business incubators are planned throughout Latvia, including incubators for creative industries and technology businesses.
Export Support Provision: The aim is to ensure the creation of knowledge and innovation-based exportable products and services and provide access to foreign markets. The total funding for this activity is 28.94 million euros. Within its framework, merchants can receive grants for participation in international events, platforms; development of publicity, advertising, and marketing materials; market research in target markets; assessment of factories and product compliance; membership in international sectoral associations; involvement of foreign sectoral experts in export markets; trademark and design pattern development and registration; participation in the recipient's international trade missions and visits by high-ranking Latvian officials abroad in person and online; as well as organizing international sports events and exhibitions. In addition, LIAA will provide consultations from Latvian external economic representations, promote business and exports in person and online, participate in the national stands of the funding recipient, adapt products or services for foreign markets, and provide export consultations for establishing business contacts abroad.
The support program will improve productivity levels, particularly in the processing industry; enhance innovation performance; stimulate the start-up of low-initiative businesses, address basic skill shortages in business startups, and survival rates in the early years of operation; develop SME export skills, allowing full use of opportunities offered by external markets; and stimulate cross-sectoral collaboration at the national and international levels, aimed at commercializing creativity and innovation, developing new service and product designs, and increasing their added value.
It is planned that a total of 1,500 companies that develop their business projects will be supported within the framework of the support program, of which at least 300 will be authors of new ideas. The turnover of supported companies is expected to increase by 12%, and export volume will increase by 20% or 0.6 billion EUR annually (from 2024 to 2029). Also, it is planned to support 700 exporting companies, creating 1,000 new jobs.
For detailed rules regarding the implementation of the EU Cohesion Policy Program for 2021-2027, specific support objective 1.2.3. "Promote sustainable growth, competitiveness, and job creation in SMEs, including with productive investments" and 1.2.3.1. "Support for SME innovative business development", one can consult the Legal Act Portal.