In the Ministry of Economics (MoE) budget for 2025, the largest share – slightly more than 61% of total funding, or EUR 122.8 million – is earmarked for various support measures to boost business competitiveness: attracting high value-added investment, supporting innovation, and promoting corporate digitalisation, energy efficiency and export capacity. Together with the support programmes already launched and those still planned, EU and state investments of more than EUR 250 million will be available to businesses.
For the development of innovation, in 2025 businesses will continue to have access to a range of Recovery Fund programmes as well as EU structural funds support programmes, with a total of EUR 89.7 million channelled towards this objective – a support instrument for research and internationalisation to increase private research and development spending, support for SME business incubation activities, venture capital investments, support for the development and commercialisation of new products and services and of research projects, and support for the development of new products.
In addition to the development of innovation, the MoE's 2025 state budget provides a further EUR 10 million for the continued implementation of the existing Innovation Fund long-term research programme, as well as for the creation of a new Innovation Investment Fund to support companies in bringing innovative ideas to life across various smart specialisation areas. Start-ups are also significant players in the development of innovation, and so next year we will continue to support non-governmental organisations within the start-up ecosystem in organising international-level events and providing consultations, with EUR 400 thousand earmarked for this purpose in the 2025 state budget.
To promote digitalisation in companies, next year EUR 44.3 million will likewise be available under the Recovery Fund and the EU structural funds to support businesses in digitalising their processes and introducing new products and services into their operations, including the introduction of modern automation, robotisation and work control tools at production facilities and the development of employees' digital skills; loans with a capital rebate will also be available to businesses.
To raise productivity and exports and to create new jobs, in 2025 support of EUR 73.3 million will be available to businesses from the Recovery Fund and the EU structural funds – loans with a capital rebate for the development of innovative products by export-oriented businesses, loans for investment and working capital, guarantees and portfolio guarantees, support for sector-driven adult education, start-up and growth loans for investment and working capital, as well as support for export promotion activities, company participation in the capital market and the development of tourism products. In the 2025 state budget we have found scope to channel a further EUR 7.8 million towards various activities promoting goods and services exports and attracting investment, including organising high-level business delegation visits abroad with representation from industry companies, providing higher-quality and faster services to foreign investors and exporting businesses, and fostering growth in foreign investment.
Investment in improving energy efficiency in business will likewise continue under EU structural funds and Recovery Fund support programmes – EUR 26.5 million will be available to businesses for the introduction of renewable energy technologies and the more rational use of energy resources. It should also be stressed that 2025 will see continued investment of EUR 21 million in modernising Latvia's electricity transmission and distribution networks, which will strengthen business security and competitiveness in the years ahead.
Significant investment of EUR 16.6 million is planned next year in the development of Riga Free Port infrastructure, in order to strengthen the development of offshore wind technology manufacturing, which is critically important to European Union supply chains.