The information was translated using the ChatGPT service.
In a meeting on January 9th this year, the Cabinet of Ministers supported three new Recovery Fund support programs for the implementation of research projects, amounting to 112 million euros, with the aim of promoting innovation development in Latvia.
Innovation and digitization are key factors in increasing the productivity and competitiveness of Latvian companies. However, it is very important to develop innovations, which in their initial stage are simply a successful invention, into a specific device, method, or product that changes the work of companies or our everyday life, making it more productive. To achieve this, perfect collaboration or synergy between universities, scientific institutes, state institutions, and companies is crucial. The support programs approved today are a significant step forward in the state's targeted involvement in creating and supporting an environment conducive to such innovations, and in providing support for companies in developing new products and services," emphasizes the Minister of Economy, Viktors Valainis.
Support will be available for small and medium-sized enterprises, as well as large commercial entities, including state-owned companies and research institutions in smart specialization areas. Within the framework of the support program, commercial entities will be able to receive financial support in the form of grants with a maximum intensity of 80%. Eligible costs within the program include participation fees and other costs for involvement in international research and development programs, platforms, and initiatives, preparation for international projects, project management costs, external service purchases, and publicity events. Meanwhile, support will be available for research project implementers for research activities (experimental, industrial, technical-economic), labor costs, salary tax expenses, business trips, utilities, and communication services, rental costs for space, instruments, equipment and their equipment, planned material costs, costs for contract research and patents, amortization expenses for owned buildings, instruments, equipment and their equipment, patents and licenses, insurance, external service expenses, data purchase, and subscription costs.
The support program for introducing new products and services into business will provide financial support for the digital transformation of commercial entities, including the introduction of modern automation, robotics, and work control tools in production. The total funding for the support program is 24,300,000 euros, with private co-financing for innovation introduction of at least 16 million euros; the maximum available support for one recipient is 3,037,500 euros, while for one partner it is no more than 1,000,000 euros.
By June 30, 2026, a total of 43 research projects are planned to be approved within the framework of the support program, supporting 60 commercial entities in the development of 120 new products, services, or technologies, of which 35 must be introduced into production and 300 new jobs created, increasing the turnover of these commercial entities by 50 million euros and export volume by 35 million euros.
Detailed conditions of the support program are included in the Cabinet of Ministers Regulations "Rules for the Implementation of the Investment "Support for the Introduction of New Products and Services into Business" under the Latvian Recovery and Resilience Mechanism Plan 2.2. Reform and Investment Direction "Digital Transformation and Innovation of Enterprises" 2.2.1.3.i. investment".
The support program for research and internationalization will facilitate an increase in the volume of private research and development investments by making targeted public investments that would promote the development of new products and services, as well as the transfer of knowledge in the national economy. The total funding of the support program is 47,663,651 euros; the maximum available support for one recipient is 5,957,956 euros, while for a partner it is no more than 1,489,489 euros.
By June 30, 2025, commitments of at least 42,876,411 euros are planned to be approved within the framework of the support program, while attracting private investments of at least 32 million euros. The support program plans to provide support to 125 commercial entities for the development of 250 new products, services, or technologies, of which 75 must be introduced into production, and 600 new jobs created, increasing the turnover of commercial entities by 100 million euros and the export volume by 70 million euros.
Detailed conditions of the support program are included in the Cabinet of Ministers Regulations "Rules for the Implementation of the Second Phase of the Investment "Support Instrument for Research and Internationalization" under the Latvian Recovery and Resilience Mechanism Plan 5.1. Reform and Investment Direction "Increasing Productivity through Increasing the Volume of Investment in R&D" 5.1.1.r. reform "Innovation Management and Motivation of Private R&D Investments" 5.1.1.2.i. investment".
Within the framework of the support program for the development of innovative products and technologies, commercial entities will have access to financial support for the development of new products, technologies, and services that promote a low-carbon emission economy or resilience to climate change or adaptation to it, attracting private co-financing for innovation implementation. The total funding of the support program is 40,000,000 euros; the maximum available support for one recipient is 5,000,000 euros, while for a partner it is no more than 1,250,000 euros.
By December 31, 2024, research projects of at least 36 million euros are planned to be approved within the framework of the support program, while attracting private investments of at least 26 million euros. The support program plans to provide support to 60 commercial entities for the development of 210 new products, services, or technologies, of which 63 must be introduced into production and 500 new jobs created, increasing the turnover of commercial entities by 84 million euros and increasing the export volume by 58 million euros.
Support for the implementation of research projects to promote innovation was also available during the EU funds 2014 - 2020 planning period within the framework of the Competence Center Support Program. During this period, support of 62 million euros was provided to 322 commercial entities, which together developed 610 new products, services, or technologies, of which 172 have already been introduced into production, while creating 1149 new jobs. By 2021, the turnover of commercial entities had increased by 254.8 million euros and the export volume had increased to 519 million euros compared to 2015, when the Competence Center Support Program was started.
Economics Ministry
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