Innovation competency potential of Latvia

1
Innovation competency potential of Latvia

• Optimal model for rapid economical development
  provision

2
What is innovation?
Which ones?

• Innovation (innovative activity) is a Process, in
  which new scientific, technical, social, cultural
  or other sphere elaborations and technologies
  are sold in the market as a demanded and
  competitive product or service

3
Latvias Development Factors

• Structural and institutional reforms in nineties,
  introduction of the liberal market (Latvia goes
  out in the World)
• Foreign investments and credits
• The domestic consumption growth
• Re-orientation of the economy

4
Latvia crisis, stabilization, reforms and
development (but what kind of?)
GDP/per capita
1st phase - degradation (till 1991)
6th phase endogenous innovative economics (2005
- )
2nd phase - riddance (1991-1993)
Inflation
5th phase exogenous innovative economics (2000
-2005)
4th phase - recovery (institutional reforms
1994-2000)
3rd phase - stabilization (1993-1994)
5
LATVIA Gross Domestic Product
GDP at constant prices (changes in of previous
period)
Privatization of large public enterprises
Reforms in Latvia
Riga Stock Exchange
Latvian Export Credit
Latvian Privatization Agency
Latvian Development Agency
LVL
Stabilization policy
Latvian Investment Bank
Price liberalization
6
Foreign Investment In Latvia
End of the period, mill. LVL
7
Non-financial investment
Comparable prices, mill. LVL, year 2000
8
Trade restructuring
Export, mill. LVL
9
Trade restructuring
Import, mill. LVL
10
Latvia Russia

• GDP growth rate of Latvia, (compared to
  previous years)
• Trade turnover of Latvia with Russia ( of
  total foreign trade turnover)

11
Cars
Per 10 000 inhabitants
12
Mobile phones
Thousands
13
Latvian tourists
Departed, thou.
14
Share of Food in the Consumption

15
Students
Per 10 000 inhabitants
16
GDP growth rate
vs previous period
17
Latvias Development Pattern

• Innovative, but mostly exogenous, innovation
  absorbing specific to transitional economy, in
  the process of restructuring
• Exogenous development is time and space limited
• The alternative for the future endogenous
  innovative development

18
Comparison of Latvias GDP per capita with the
average level of EU (EU in 2000 100)
19
Technology Waves
Absorption
Latvia
Renovation, modernization
Critical margin 2010
?
SIXTH WAVE
2040
20 years
20
Latvias Future Potential

• Logistics And Trade
• Banks And Finances
• Informatics
• Telecommunications
• Endogenous Innovation (sixth wave?)

21
Innovation Systems (macro level)
22
Innovation System (micro level)
Priorities
23
Innovation And Development
Industries (physical capital)
Innovation process (education, science, new
technologies, effective menagement etc.)
National income
Intellectual capital (human resources)
24
Future is revolving evolution

• or evolving revolution?