- Economic growth in Latvia slowed down significantly in the first half of 2016 as the use of EU funding for investment was much lower than expected. The general fiscal situation remains stable.
- In 2014, Latvian SMEs generated around 69% of the non-financial business economy's value added which is much higher that the European average (58%). However, Latvian SMEs are concentrated in sectors with low and medium-low research intensity.
- BERD intensity in Latvia has been stagnating in the recent years. In 2015, it decreased to as low as 0.15% of GDP.
- Government support to R&D in Latvia is still very modest. Latvian GBAORD (0.19% of GDP in 2015) is very low, 3 times lower than the EU average. The country is extremely reliant on EU funding for its R&D expenditure.
- Some public sector innovation initiatives in terms of new electronic services and open data projects were rolled out recently but in general the public sector and the civil society are not actively engaged in co-creation of services and in procurement of innovative solutions.