To ensure broader access to support and simplify requirements for applicants developing new or significantly improved dual-use products, the Ministry of Economics (MoE) has prepared regulatory amendments, which were approved at the government meeting on Tuesday, October 21.
Moreover, companies operating in this sector—producing goods or offering technologies for both civilian and military purposes—will now have the opportunity to protect their intellectual property rights and leverage professional expertise from industry associations. Eligible project costs will include expenses related to patents and other intangible assets, as well as costs for industry expertise in market and technology research, to the extent necessary for project implementation. These provisions are included in the amendments to Cabinet Regulations No. 663 of October 22, 2024, “Implementation rules for the third round of measure 1.2.1.1 ‘Support for the Development and Internationalization of New Products’ under Specific Objective 1.2.1 ‘Strengthening Research and Innovation Capacity and Introducing Advanced Technologies for Enterprises’ of the European Union Cohesion Policy Program 2021–2027.”
“Dual-use technologies are becoming one of the pillars of Latvia’s economic growth—a field where innovation, security, and export potential intersect. Currently, more than 40 Latvian companies are developing products usable in both civilian and military sectors—from drone solutions and sensor technologies to materials science innovations and cybersecurity software solutions. These amendments expand available support and reduce bureaucratic barriers, allowing even startups to integrate into the security industry supply chains,” emphasizes Minister of Economics Viktors Valainis.
Previously, to qualify for support for dual-use new or significantly improved product development, project applicants had to have a turnover at least twice the amount of the requested public funding. This threshold has now been reduced—turnover must be at least 30% of the requested public funding, or the company must have a contract with the National Armed Forces worth at least 30% of the requested public funding. Companies in good standing with tax obligations will not be penalized for tax arrears. Additional points are awarded to project applicants located outside Riga.
Given that support under the program is provided for dual-use new or significantly improved products and technologies intended for both military and civilian purposes, the project evaluation process has been clarified. In evaluating project applications, the Defense Ministry will assess the military component, while the Ministry of Economics will assess the civilian component.
In the first project selection round, which concluded in April 2025, contracts were signed with 25 companies for €13.8 million in public funding. Private co-financing of approximately €8.7 million is expected. For the new project selection, €15.5 million in public funding will be available.
The project selection process is planned to take place from November to the end of this year.