Research & Innovation
Research and Innovation Observatory – Horizon 2020 Policy Support Facility

Service tools

Navigation path

Latvia - European Semester

The Europe 2020 Strategy set a 3% objective for R&D intensity for the EU as a whole and most Member States have adopted a national R&D intensity target for 2020. The European Semester, the EU's annual cycle of economic policy coordination, undertakes a detailed analysis of the EU Member States’ plans for R&I investment and structural reforms of national R&I systems, and provides them with recommendations.

The Annual Growth Survey 2016 highlighted that investing in R&I at national level is critical for growth and that therefore Member States should continue to prioritise public investments in R&I, ensuring their efficiency and leverage with regard to business investment. Member States need to keep up the pace of reforms to ensure an investment-friendly environment. See more information about the European Semester.

 
 

Research and Innovation Performance

The European Semester supports Member States' structural reforms in different policy areas to promote jobs, growth and investment. Research and innovation play a key role in this context. That is why the Commission gives recommendations to and closely work with the Member States to increase the performance of their national R&I systems.
Have a look and see how the country is performing.

Report year
2016
Document type
Exercise type
R&I performance
Geo coverage
Publication date
10 November 2016

European Semester Country Report

Latvia’s innovation performance has slightly improved. The country moved up from the group of ‘modest innovators’ to the group of ‘moderate innovators’.  However, Latvia’s business R&D intensity remains one of the lowest in the EU and cooperation between science and business remains low. Latvia’s research and innovation system strongly depends on support from EU funds.

Public research suffers from underfunding, fragmentation and low internationalisation. Reforms to consolidate research institutions are ongoing. New rules for the allocations of both project funding (with international standards of peer review) and institutional funding (with elements of performance-based funding) were introduced. However, public research funding remains fragmented and regulations for the assessment of projects are complex.

Business investment in research and innovation remains low in international comparison. Over the last eight years Latvia had a positive growth of business R&D investment of about 4.8 % per year. However, in 2015, business investment in R&D declined to 0.15 % of GDP (from 0.24 % in 2014). Overall, business investment in R&D remains among the lowest in the EU. The take-up of R&D tax incentives is increasing, though in absolute terms the amounts are still limited. The sectoral distribution of SME’s is not conducive to innovation. SMEs are, to a large extent, concentrated in sectors with low and medium-low research intensity, such as metal processing and machinery, wood products and food processing.

Report year
2017
Document type
Exercise type
European Semester Country Report
Geo coverage
Publication date
23 February 2017

European Semester - Country specific recommendation

Horizon 2020 Policy Support Facility (PSF)

Last update: 16/08/2018 | Top | Legal notice | Contact | Search