Overview

Latvia in white has the Baltic Sea to the west, Lithuania to the south, Estonia to the North East and Russia and Belarus to its east.  Riga is the capitol of Latvia and Tallinn is the capitol of Estonia.  Riga, the capitol of Latvia, is the primary geographical location for technology development.  In Estonia as well, the capital city Tallinn has been an incubator for IT development with Tallinn Technical University Innovation Center (TUIC) as a driver to technological advancement.  The Tartu Science Park was the first the first specialized innovation support institution in Estonia.

Estonia Country Guide
Latvia Country Guide

Maps from CIA World Factbook

Riga

Due to the recent political and economic developments in the country, it is imperative that government and business work closely together to conceptualize business principles and craft laws that will put the country on a course of economic stability and prosperity.  In just 8 years, the people of Latvia have done an admirable job building a foundation, however more work must be done to integrate the economy into the EU and global economic communities.

Note: The major learning institutions are also found in Riga and are discussed in the IT Labor Market section of this report.

(STP)

The project "Salaspils Technology Park" is managed by the Project Management Unit established by the Latvian Development Agency and approved by the Cabinet of Ministers.  Relevant matters are approved by the Salaspils City Council.

The Salaspils Technology Park (scientific technical complexes) was conceived 30 years ago and outlined by the principles of science and technology development.  This park is 18 kilometers from Riga with air, rail, and highway transit accessibility.  Along with transportation infrastructure, the Park has buildings and installation of water, heat, gas, and plumbing.

The Park has six research institutes with buildings that include laboratories, warehouses, electrical stations, nuclear research reactors, and botanical gardens.  This park has the potential to grow and assist companies in developing business infrastructure and opportunities.

The objectives of the Park are the following

• To establish and develop science-based modern technology-intensive manufacturing as the basis for long-term development in Latvia and high level of motivation and standard of living;

• To create a long-term basis for transfer and attraction of intellect-intensive manufacturing and modern technologies to the economy of the Republic of Latvia, to provide entrepreneurs with European experience;

• To establish the STP as an effective, appealing and competitive instrument for attracting direct investments in the European and eastern European investment market;

• To encourage the increase of Latvian export and the development of import-replacing manufacturing; By creating new job opportunities during the implementation of the project, to balance the future development of Riga and the City of  Salaspils on a mutually profitable and co-ordinated basis;

•  To stimulate the economic development of the sectors associated with large-scale capital investments, creating advantages to their placement within the territory of the STP.

Strengths

One major strength the project has is Latvia’s highly qualified labor pool.   Even in comparison with European countries including Eastern and  Central Europe Latvia’s labor pool can be considered highly educated.  Additionally, a highly developed infrastructure in a convenient geographical location protects this development from fragmentation.  The developments of the industrial branches of Latvia include electronics, computer technologies, and information infrastructures.   The municipal government of Salaspils supports the possibility of granting property to the STP without compensation and is examining the possibility of granting the STP tax-exempt status.

Weaknesses

Weaknesses include the high cost of development and Latvia’s inexperience in executing large scale projects.  Additionally, the project has some marketing and public relations hurdles to jump over.

Opportunities

The Latvian Development Agency (LDA) has involved foreign experts through the PHARE program for detailed project development.  Additionally, the LDA has experience and capabilities in managing and implementation of such projects.  A number of outside business and government organizations have expressed interest in developing this program including possible funding from the World Bank.

Threats

The inability to work out the details of the project and obtaining adequate funding are major threats to the project’s success.

For a complete SWOT analysis and additional information on STP, visit http://www.sal.lv/Stp.htm
 

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