Doctor of Economics, Associate Professor, Baltic International Academy (Riga, Latvia)
The aim of the article. The aim of the article is to identify the reasons for the lack of innovational development in Latvia and to make recommendations on the formation of national innovation policy.
The results of the analysis. EU countries are undergoing profound social and economic changes, including: the growing influence of developing countries, ageing populations in the industrialized countries, the unstable political situation. All this require a new approach to innovation, formation of national innovation policy that ensures the increase of the country’s competitiveness. There should be created innovative policies that will promote economic restructuring. The article describes the problems and directions of innovative development in Latvia. Innovative development has become the main way to achieve economic growth and competitiveness in all EU countries. The estimation of the economic state of Latvia after joining the EU, is identified as positive aspects and disadvantages in economic development. Thanks to European money Latvian entrepreneurs were able to upgrade their equipment, to enter new markets and to expand production capacity. The identified problems of economic development in Latvia showed the exhaustion of the existing model of the economy. Studies have shown that foreign direct investments led to a qualitative leap in the growth of gross domestic product at the same time led to dependence on external financing as how freedom of movement has contributed to a significant leakage of the working population. Reflecting the dynamics of changes of innovation capacity problems hampers further innovative development. During the crisis of 2008-2011 it is manifested a lack of flexibility in management system, which combining with limited internal resources and the lack of demand had the most negative consequences. It is formulated the areas for further innovation development in Latvia, the implementation of which will contribute to the formation of national innovation policy, long-term economic growth and competitiveness of the country. The further development of Latvia is possible, provided with the governmental focus on the development of intellectual potential of fundamental research and development and information resources. State has to invest and promote investment in the researches and development of private firms; try to develop international competitiveness in science and increase the number of scientists and experts in the sphere of natural sciences and engineering. Matters considered in this article do not show the whole list of problems that hinder the innovative development of Latvia. But even they are constraining the development of this process.
Conclusions and directions for further research. We believe that economic growth and competitiveness of Latvia is possible only through formation of national innovation policy. Therefore, further research is proposed to channel into the establishment of regional innovation centers and tracking processes that impede their innovative development.
Keywords: innovative policy, innovative development, foreign investments, euro integration, competitiveness
JEL Classification: R11, R58.
Cite as: Stradinya, S. (2015). Innovative development of Latvia: analysis of problems and directions of national innovative policy formation. Marketing and Management of Innovations, 3, 160-171. https://doi.org/10.21272/mmi.2015.3-14
This work is licensed under a Creative Commons Attribution 4.0 International License
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