What innovation support tools are available for ITC and e-business startups and SMEs? Ilze Skrebele-Stikāne Project manager Project Development Division
National Development Plan 2007-2013 Entrepreneurship competitiveness and Innovation Promotion program
Entrepreneurship competitiveness and Innovation Promotion program 2007-2013 National Innovation Program Action Plan for improvement of business environment Industry Policy guidelines (medium term) Competitiveness and Innovation program National SME Development Program 2007-2013 Goal of Programme for development of innovation: To promote increase of National innovation system s capacity and effectiveness by establishing of regulatory, financial and informational environment for innovation Actions to achieve goal of Programme for innovation: Promoting joint research work in institutions of higher education, scientific research and enterprises Promoting knowledge transfer and commercialization Promoting initiation of innovative solutions at enterprises Providing demand for high-skilled professionals as well as by improvement of materially-technical base for knowledge
Innovation System of Latvia 2007-2013
Science Infrastructure Centres of scientific excellence New materials Institute of Solid State Physics of the University of Latvia Biomedicine Biomedical Research and Study centre Pharmaceutical chemistry Latvian Institute of Organic Synthesis Information technologies Institute for Mathematics and Informatics of the University of Latvia Electronics Institute of Electronics and Computer Science Wood chemistry Latvian State Institute of Wood Chemistry Magnetohydrodinamics Institute of Physics of the University of Latvia Space observations Ventspils International Radio Astronomy Center Investments in infrastructure 2004-2006 more than 35 MEUR invested in modern research infrastructure 2008-2013 additional 210 MEUR planned Riga Technical University and University of Latvia as main resource of scientific knowledge
National Reference Framework Document 2007 2013 Entrepreneurship and Innovation Priority Activity Sub activity Support to Science and Research 60 MEUR 1.1. Science, R&D Support to international cooperation projects in S&T 8,2 MEUR Development of S&R infrastructure 211 MEUR 1. Science & Innovation 1.2. Innovation Science Commercialization and TT Competence Centres TT Contact Points 60,8 MEUR 3,5 MEUR + Attraction of Highly qualified workforce 0,27 MEUR Innovation motivation and awareness 2,9 MEUR Knowledge application to improve competitiveness of companies Development of new products and technologies 147,3 MEUR High Value added investment 50,2MEUR 2. Access to Finance 2.1. Holding fund for the investment in guarantee, high risk loans, and venture capital funds and other financial instruments 91,5 MEUR 2.2. Guarantees for development of enterprise competitiveness 56, 9MEUR 2.3. Loans for development of enterprise competitiveness 64,7 MEUR 3. Support to the enterprises 3.1. Business incubators 28,7 MEUR
Applied and basic R&D Education Outflow of Master, PhD Fiscal incentive environment System of State Aid Entrepreneurship Motivation and Innovation Culture Idea with comm. value Entreprene urship education, training Idea stimulation / business idea formulation Business culture Social attitudes Understanding of failures Greenhouses Business labs Pre-analysis Market analysis Product Protection Development Value Competition cooperation Technology Transfer System Business plan Dev. plans Market plan Organisation plan Financial plan Prospect Forming new start-up Funding Equity registration Licensing IPR Commercial protection Marketing Royalty agreement Technology Incubators Real estate Incubator Premises Industrial networks Basic daily services Professional services Incubator Asset management Early stage Seed capital Risk capital Competent management License to existing Operational Pre Seed fund IPS financing Seed fund
Entrepreneurship motivation and Innovation promotion program - 2.9 MEUR Awareness building Regional innovation days Innovation circus PR campaign Internet Info News Self Assessment tools, handbook Innovation Award: - Best innovative firm - Best innovative product - Best article in mass media Entrepreneurship Entrepreneurial education schools Students business trainings Business plan competitions Pre-seed pilot facility Support to pre-incubators Investment readiness for researchers and engineers Masterclass programme Train trainers approach Existing SME Creativity as a part of work Learn technology approach Best practices & championing Empower employees to take initiative Promote investment in R&D IPR legal platform Promote training culture Promote innovation bonus systems in companies SAP promotion Entrepreneurship policy Promotion of new innovative SMEs policy Encouraging phase Birth phase Start phase After-start phase (upon 42 months) Growth management phase
Encouragement, involvement and start-up Businessma Intensive n in 5 Days Idea 1st Training Pitch IDEA TRAINING BUSINESS PLAN Pre-seed Facility Innovative Idea Investor Readiness Training PreSeed- Funding Negotiations with VC
Applied and basic R&D Education Outflow of Master, PhD Fiscal incentive environment System of State Aid Entrepreneurship Motivation and Innovation Culture Idea with comm. value Entreprene urship education, training Idea stimulation / business idea formulation Business culture Social attitudes Understanding of failures Greenhouses Business labs Pre-analysis Market analysis Product Protection Development Value Competition cooperation Technology Transfer System Business plan Dev. plans Market plan Organisation plan Financial plan Prospect Forming new start-up Funding Equity registration Licensing IPR Commercial protection Marketing Royalty agreement Technology Incubators Real estate Incubator Premises Industrial networks Basic daily services Professional services Incubator Asset management Early stage Seed capital Risk capital Competent management License to existing Operational Pre Seed fund IPS financing Seed fund
TECHNOLOGY TRANSFER A LINK BETWEEN RESEARCH AND INDUSTRY R&D Technology Transfer Market Research Results Marketable IP University Research Organization Development of IP Collaboration with industry Licensing MARKET Creation of new
Commercialization Reactor Objective: To promote establishment of new internationaly competitive startups in Latvia, by comercializing technologies developed in CIS countries. November, 2009 May, 2010 CIS Technology Presentation 9 10 LV Technology Presentation 0 1 Registered business developers 90 170 Individual Meetings 46 60 Letters of intent 3 7 New companies established 2 -
Competence Centres Competence centre is a legal entity that is formed by several partners from science, higher education and private sectors. The aim of the partners is to carry out industrial research and new product development activities that would promote the increase of competitiveness of enterprises and would be a significant boost for economy in general. Objective to raise the competitiveness of enterprises by promoting collaboration of research and industrial sectors to implement industrial researches, new product and technology and development projects. Financing from public resources: 60.8 MEUR, private co-financing: 17.2 MEUR Beneficiaries Competence Center which is a legal entity and which unites at least three mutually unrelated collaboration partners from industry, and at least one cooperation partner from science. It is planned to approve Regulations on activity Competence Centres in the Cabinet of Ministers of the Republic of Latvia on last quarter 2009 It is expected that 5-6 world class competency centers will be created
INDUSTRIAL CLUSTERS Support to Industrial Clusters (2009 0,3 MEUR, 2010 0,15 MEUR, Under MoE) To promote cooperation between enterprises and related institutions (education, development institutions) from related industries by supporting implementation of common projects.
Applied and basic R&D Education Outflow of Master, PhD Fiscal incentive environment System of State Aid Entrepreneurship Motivation and Innovation Culture Idea with comm. value Entreprene urship education, training Idea stimulation / business idea formulation Business culture Social attitudes Understanding of failures Greenhouses Business labs Pre-analysis Market analysis Product Protection Development Value Competition cooperation Technology Transfer System Business plan Dev. plans Market plan Organisation plan Financial plan Prospect Forming new start-up Funding Equity registration Licensing IPR Commercial protection Marketing Royalty agreement Technology Incubators Real estate Incubator Premises Industrial networks Basic daily services Professional services Incubator Asset management Early stage Seed capital Risk capital Competent management License to existing Operational Pre Seed fund IPS financing Seed fund
Innovation centre and Business incubator program (2007-2008) 5 Innovation Centres and 6 Business Incubators established in all regions of Latvia 2007 2008 Total Funding (MEUR) 2.316 2.334 New Companies 67 111 178 New Jobs 136 319 455 Taxes paid (MEUR) 0.355 1.29 1.645 Extra 156.5 thousand EUR were allocated from state budget to ensure continuity of 5 innovation centres and 6 business incubators functions in first half of 2009
Funding of BI (2009-2014) Tender No.1 on incubation services to creative industry SMEs in Riga (total amount 2,0 mln LVL (~ 2,8 mln EUR) Tender No.2 on incubation services for SMEs in the regions of Latvia. Subject of tender was devided into 5 lots: A. Riga Planning Region total amount 2,8 mln EUR (1 Contract); B. Vidzeme planning region with total amount 5,6 mln EUR (2 Contracts); C. Latgale planning region with total amount 5,6 mln EUR (2 Contracts); D. Zemgale planning region with total amount 5,6 mln EUR (2 Contracts); E. Kurzeme planning region with total amount 5,6 mln EUR (2 Contracts).
Business Incubation
ALTUM (LMLB) New ALTUM program (Latvian Mortgage and Land Bank) Activity 1.3.1.2. Support to start self-employment and entrepreneurship Total Public Funding 20,34 MEUR Beneficiaries Persons in the working age, including unemployed Newly established companies (up to 3 years old) Start (planned in the 2nd part of this year) Available support: Training on elaboration of Business Plan Consultation in preparation of Business Plan Loan not exceeding 76 800 EUR per project (loan will cover up to 90% of the total costs of the business project) Small grants available: Grant for operation of the business - 35% of the loan, but not more than 5100 EUR Grant for repayment of the loan - 20% of the loan, but not more than 2900 EUR (after two year operation)
Applied and basic R&D System of State Aid Education Outflow of Master, PhD Fiscal incentive environment Entrepreneurship Motivation and Innovation Culture Idea with comm. value Entreprene urship education, training Idea stimulation / business idea formulation Business culture Social attitudes Understanding of failures Greenhouses Business labs Pre-analysis Market analysis Product Protection Development Value Competition cooperation Technology Transfer System Business plan Dev. plans Market plan Organisation plan Financial plan Prospect Forming new start-up Funding Equity registration Licensing IPR Commercial protection Marketing Royalty agreement Technology Incubators Real estate Incubator Premises Industrial networks Basic daily services Professional services Incubator Asset management Early stage Seed capital Risk capital Competent management License to existing Operational Pre Seed fund IPS financing Seed fund
Attraction of a highly qualified workforce Objective - to strengthen business competitiveness and promote research activities in enterprises by attracting qualified employees both Doctorate students and graduates, research personnel of academic institutions and institutes, as well as highly-qualified specialists from abroad for the development of specific technologies or new products in enterprises. Funding of the program: 272 k EUR 5 project entries received and approved on sum total 246.7 k EUR
State Support Programs for Companies (I) Objective: to provide support for development of new and/or significantly improved existing products, services, or technologic processes, as well as to promote enterprises to invest in research and development (R&D) Financing form public resources: 147,3 MEUR Program covers almost all new product development phases including the introduction of the on stream production of the product includes following subprograms: Elaboration of new products and technologies in Sector Innovation Introduction of on stream production of new products, services or technologic processes Protection of Intellectual Property Beneficiaries: Enterprises. Foreign companies may participate, if daughter registered in Latvia.
High value added investment Objective: to stimulate local enterprises to invest into knowledge and/or technologic intensive projects, as well as to attract foreign investment in industries with high added value, thereby promoting brand-new technology transfer from abroad. Funding of the program: 50.2 MEUR Beneficiaries: entrepreneurs Selection criteria: Projects are compared with each other with the help of complex criteria set that is calculated by taking into consideration such characteristics of the project as: Value added per working place; Amount of private co-financing; Export potential within industry the project will be implemented in.
Thank you for attention! Pērses iela 2, Rīga, LV 1442, Latvija Tālr.: +371 67039400 Fakss: +371 67039401 E-pasts: liaa@liaa.gov.lv www.liaa.gov.lv