STARTUP ECOSYSTEM
Latvia Innovation index
Latvia’s Innovation Landscape: Patents and R&D Investment Trends
Innovation is a key driver of economic growth and technological advancement, and Latvia has been making notable strides in this area. Recent data indicates positive trends in both patent filings and research and development (R&D) investments, reflecting the country’s commitment to fostering innovation.
Patent Filings
In 2023, Latvia saw a significant increase in patent activity. The number of national patent applications reached 143, marking a substantial rise from previous years. This upward trend underscores the country’s growing emphasis on innovation and the protection of intellectual property.
R&D Investment
Latvia’s investment in research and development has also been on an upward trajectory. In 2023, the country’s R&D expenditure as a percentage of GDP was 0.8%, reflecting a steady increase from 0.64% in 2021. While this figure remains below the European Union (EU) average of 2.22% in 2023, it demonstrates Latvia’s ongoing efforts to enhance its R&D capabilities.
Source: EUROSTAT, R&D expenditure, December 2024
Furthermore, government budget allocations for R&D have seen a notable rise. In 2023, Latvia’s government budget allocations for R&D per person stood at €62.7, a significant increase from €16.0 in 2013. This 291.9% growth highlights the government’s commitment to supporting research and innovation initiatives.
Latvia’s innovation landscape is showing promising developments, with increases in both patent filings and R&D investments. While there is still room for growth to reach the EU average, the upward trends indicate a positive trajectory. Continued focus on enhancing R&D spending and fostering innovation will be crucial for Latvia to strengthen its position in the global innovation arena.
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Latvia Startup density
Latvia's startup ecosystem has been steadily evolving, marked by significant developments in global rankings, regional standings, and ecosystem valuation. The nation's focus on innovation, particularly in sectors like fintech, deep tech, artificial intelligence (AI), and health tech, has been instrumental in this progress.
Latvia Export/Import Ratio
In 2023, Latvia’s foreign trade experienced notable shifts, with exports totalling approximately €18.94 billion, a decrease of 11.2% from 2022, and imports amounting to €23.2 billion, down 12.5% from the previous year. This resulted in a trade deficit of about €4.26 billion, highlighting Latvia’s continued reliance on imports, particularly in the technology and machinery sectors.
Latvia Investment in key sectors
Latvia has made significant strides in fostering technological innovation and strengthening its education sector. Despite economic fluctuations, public and private investments in these areas have remained robust, highlighting a long-term commitment to economic development, digital transformation, and talent growth.
Latvia Innovation index
Innovation is a key driver of economic growth and technological advancement, and Latvia has been making notable strides in this area. Recent data indicates positive trends in both patent filings and research and development (R&D) investments, reflecting the country's commitment to fostering innovation.
Latvia Funding volume
In 2023, Latvia's startup ecosystem experienced notable developments in venture capital (VC) investments, reflecting both significant achievements and ongoing challenges. The year was marked by a record increase in investment activity, yet the country continued to face hurdles in matching the venture capital attraction levels of its Baltic neighbours.
