In its meeting on 20 February 2024, the Cabinet of Ministers approved a Recovery and Resilience Facility (RRF) support programme to enable Latvian companies and research organisations to develop projects within the scope of Important Projects of Common European Interest (IPCEI).
“The new Recovery and Resilience Facility support programme provides not only financial backing but also an opportunity to promote the development of new Latvian products and technologies at an international level. At the same time, this support not only strengthens the research capacity of Latvian companies but also fosters competitiveness by creating opportunities for the development of new products and technologies that meet European-scale needs,” emphasises Minister for Economics Viktors Valainis.
Within the framework of the programme, support will be provided to micro, small, medium and large enterprises, including state-owned capital companies and research and knowledge dissemination organisations that are developing new products, services and technologies, so that they can participate in IPCEI.
Support will be provided for research activities – industrial research, experimental development, technical-economic feasibility studies, wages, payroll taxes, business trips, utility and communication services, rental fees for premises, instruments, equipment and their fixtures, planned material costs, costs for contract research and patents, amortisation costs for owned buildings, instruments, equipment and their fixtures, patents and licences, insurance, external service costs, communication costs, and data acquisition and subscription costs.
Projects will be supported in IPCEI areas such as health (divided into two waves – the first wave will provide support for pharmaceutical substances, while the second wave will cover devices), cloud data, microelectronics, and other priority areas.
A total of 31 million euros in RRF funding is available under the programme for the implementation of projects until 31 December 2027. Ministry of Economics estimates suggest that it could support 8 companies, result in the creation and development of 8 new products, services or technologies, and that the increase in company turnover in the year of the research project's completion compared to the year of its commencement will reach 65 million euros. It is also planned that company exports will increase by 45 million euros in the year of the research project's completion compared to the year of its commencement, with 35 new jobs created and at least 20 million euros in private investment attracted.
The approved conditions of the support programme “Regulations for the implementation of the fourth round of investment 5.1.1.2.i ‘Support instrument for research and internationalisation’ of the 5.1.1.r. reform ‘Innovation management and motivation for private R&D investment’ under the 5.1. reform and investment direction ‘Increasing productivity by increasing the volume of R&D investment’ of the Latvian Recovery and Resilience Mechanism Plan” are part of a package of four legal acts with a total RRF funding volume of 108,912,082 euros. The package includes the Competence Centres support programme, the Research support programme, the Cooperation Network programme, and the approved programme for the involvement of Latvian companies and research organisations in Important Projects of Common European Interest.
More on the approved regulations for the implementation of the fourth round of investment 5.1.1.2.i ‘Support instrument for research and internationalisation’ of the 5.1.1.r. reform ‘Innovation management and motivation for private R&D investment’ under the 5.1. reform and investment direction ‘Increasing productivity by increasing the volume of R&D investment’ of the Latvian Recovery and Resilience Mechanism Plan – in the unified Legal Acts Portal.