Innovation development will be supported with 112 million euros for entrepreneurs

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.

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.

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.

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.

More information about programs here.