Enabling a Global Vision for the Baltic cleantech
industry: Latvia country case
Dr.sc.eng. Juris Vanags
Latvian Biotechnology association
Interregional workshop
29-30 August, 2011, Riga
Introduction
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This report is based on a method which has been approved by Canada’s
National Research Council;
Until now in Latvia no clean technology cluster has been officially
approved;
In spit of this common activities of clean technology enterprises are
started;
Due to this, and within the scope of this report, these activities can be
analyzed based on cluster methodology;
However, unofficially established clusters can weigh down the application
of this method.
The selection principles of clean tech enterprises
In this report the enterprises were formulated as a clean technology enterprise
based on the following indicators:
1. The activities are connected with low-carbon or other environmental
protection technologies according the definition cited in an earlier report
for this Project;
2. The enterprise manages clean technology development and these results are
at least potentially valuable for other users of clean technology.
3. The enterprise works in cooperation with a scientific research group;
4. The enterprise bears R&D expenses;
5. The advice of branch leaders.
The dividing of clean enterprises in the groups
Taking into account that current conditions and current performance can differ
depending from clean-tech subfield, in this report for analyzing the
enterprises were divided in 4 clean-tech groups:
1.
2.
3.
4.
Environmental protection;
Renewable energies;
Green service;
Material science.
Access to qualified personal
The amount of clean-tech graduates in
different years
The amount prepared graduates in 3 cleantech subfields
Government policies and support
* Latvian National Development Plan, 2007-2013 www.nap.lv
* The National Environmental Policy Plan, 2004−2008
* Environmental Policy Strategy, 2009–2015
* The Ministry of Environmental Protection and Regional Development
offers also Training programme "Cleaner Production in Latvian Industries"
Investment and Development Agency of Latvia (LIAA)
The government support of enterprises in Latvia mostly is realized by Investment and
Development Agency of Latvia (LIAA)
Support can be provided in the following fields:
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scientific innovation and development - to promote research commercialization and
technology transfer, promoting new products and technologies, practical oriented
research, science and technology parks and the formation, access to finance - in order to
promote the attraction of strategic investors,
the promotion of entrepreneurship - in order to facilitate acquisition of external markets
and the international competitiveness of industries, incentives for innovation and
business creation,
encourage investment in small and medium business development activities especially in
the territories, improve the business infrastructure, clustering and business incubators, to
promote investments in companies that manufacture high value-added, high-quality
living environment and economic activity.
LIAA adopt and evaluate project applications for support.
The program of Competence centre
Under the Competence centre programme of 2011, the Competence Centre for
Environment Protection, Bioenergy and Biotechnology (CCEBB) was also built.
Under this programme, projects in the sub-fields of environment protection and
renewable energies are supported, because these directions correspond to the
activities of the given competence centre.
The Competence centres support programme in Latvia started in April 2011. The
Competence centres programme will remain in force until 2015, and the financial
value of the support for all Competence centres is 54 million EUR, or 9 million
EUR for each centre.
The Competence centre for Environmental Protection, Bioenergy and Biotechnology
includes seventeen enterprises and four scientific research organisations as its
founders. The other two enterprises participate just as project financers. A total of
38 projects have been started at this Competence centre, and eighteen of those are
connected with clean technologies.
Innovation and firm support
1. Contribution of academic and other research organizations exist, but the
research must be more industrial oriented;
2. Patenting activities is not enough from the side of enterprises, and the
cooperation between research organizations and companies must be deeper;
3. Venture capital availability is rather theoretical.
Business development capabilities
The companies see the following of the first main step as the way of getting
this done:
1. The development of a manufacturing and business structure;
2. The development of applied technologies by teaming up with research
institutes or by developing their own R&D;
3. Marketing research to expand the existing business in Latvia;
4. Marketing research to expand Latvian businesses in other countries;
5. Marketing research to find new variations of company business activities.
Product development
The respondents have indicated the following three main factors as being the
most critical for product development in the clean technology business:
1. The right mix of technological and engineering competence.
2. Development laboratories and other elements of infrastructure that are fully
equipped with modern technology and instrumentation.
3. Flexible contract relations with research organisations and other
subcontractors who are able to develop the elements of new products and
new technologies.
Current performance
Short description of the situation in main
clean-tech fields
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Waste management
Green services
Biogas production
Biodiesel, Bioethanol and Biomass producing
Export orientation
Innovation dynamic, R&D
Patents
Growth dynamic of number of employees
Growth dynamic of turnover
Growth dynamic of total profit
Financial needs
The companies were interviewed regarding investment plans for the
development of business. There were the following results of answers:
Investment area Answears No. of companies
Yes
18
R&D
No
10
Yes
24
Manufacturing
No
4
Yes
14
Marketing
No
14
Mostly companies regarding financing are oriented to own capital or support
from public organizations (mostly through the programs of LIDA). The
using of Bank and Venture capital financiation is not popular. The politic of
banks after economical crysis is too much careful, and due to this
creditation conditions often for companies are not acceptable. Venture
capital foundation program with government support was started in 2008,
but later these activities were not promoted.
Conclusion (1)
1. The increase in the number of employees of existing clean-tech companies
is more evident than establishment of new clean-tech companies. Newly
established companies usually are micro-companies.
2. The most significant number of employees and turnover was observed in
renewable energy group. The extent of turnover is more evident in this
field, compared to the number of employees.
3. The largest proportion of export was observed in renewable energy and
green service field.
4. Regarding financing companies are oriented to own capital or support from
public organizations.
5. Interaction between clean technology companies exists based on their own
activities, but these are not well enough organised due to the lack of an
officially established clean technology cluster.
Conclusion (2)
6. Some current indicators do not reflect in the corresponding results for
current performance levels.
7. The analysis of Latvian clean technology enterprises, based on Canada’s
NRC methodology, demonstrated the understanding of factors reflecting
the current situation, as well the perspective for further activities to
improve clean technology applications.
8. This report demonstrated that clean technology development in Latvia are
not well enough organised due to the lack of a cluster or a similar structure
which would consolidate all clean technology enterprises.
Thank you for attention!