Guidelines of Industrial Policy of Latvia 2013-2020
The modern industrial policy in Latvia is based on activity directed towards the elimination of market failures and the improvement of competitiveness (macro level national economy analysis), satisfaction of specific needs of separate sectors (micro level national economy analysis) and activation of regional advantages (micro level national economy analysis). At the same time the development of basic industrial policy will be ensured, as well as elaboration of advanced industrial policy (target oriented on the development of innovations, R&D, clusters). The aim of industrial policy in Latvia is to promote structural changes in economy in favour of production of goods and services with higher added value, namely by increasing the role of industry, modernizing industry and services and export sophistication.
There is no specific sector prioritized in the industrial policy but the overall stimulus is foreseen to be created for a competitive entrepreneurship. Action lines topical to creative industries are oriented around improving access to finance (investment readiness, venture capitals, loans, micro credits, guarantees etc.), promoting export (entry into new markets, participation in fairs, exhibitions, certification costs, cluster initiatives), building innovation capacity (support to new products, technologies, innovation vouchers, competence centers, incubation and pre-incubation services), and also running very targeted trainings on different aspects and crucial pitfalls of business.
In order to reach the defined aim set within the framework of modern industrial policy the following results are determined: the proportion of manufacturing industry shall reach 20% of the gross domestic product in 2020; in 2020 the increase of the productivity of manufacturing industry shall reach 40% in comparison to 2011; in 2020 the increase of manufacturing industry shall reach 60% in comparison to 2011; investments in research and development shall reach 1.5% of the GDP.
On the basis of the performed analysis and conclusions the Ministry of Economics elaborates state intervention instruments that will be financed by the EU Financial Perspectives 2014-2020. The support to activities targeting creative industries amounts to EUR 10 million.