1. 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

2. Introduction 1.This report is based on a method which has been approved by Canada’s National Research Council; 2.Until now in Latvia no clean technology cluster has been officially approved; 3.In spit of this common activities of clean technology enterprises are started; 4.Due to this, and within the scope of this report, these activities can be analyzed based on cluster methodology; 5.However, unofficially established clusters can weigh down the application of this method.

3. 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 selection principles of clean tech enterprises

4. 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.Environmental protection; 2.Renewable energies; 3.Green service; 4.Material science. The dividing of clean enterprises in the groups

5. Access to qualified personal

6. The amount of clean-tech graduates in different years

7. The amount prepared graduates in 3 clean- tech subfields

8. *Latvian National Development Plan, 2007-2013 www.nap.lvwww.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" Government policies and support

9. 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: * 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. Investment and Development Agency of Latvia (LIAA)

10. 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. The program of Competence centre

11. 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. Innovation and firm support

12. 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. Business development capabilities

13. 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. Product development

14. Current performance

15. *Waste management *Green services *Biogas production *Biodiesel, Bioethanol and Biomass producing Short description of the situation in main clean-tech fields

16. Export orientation

17. Innovation dynamic, R&D

18. Patents

19. Growth dynamic of number of employees

20. Growth dynamic of turnover

21. Growth dynamic of total profit

22. The companies were interviewed regarding investment plans for the development of business. There were the following results of answers: 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. Financial needs

23. 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 (1)

24. 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. Conclusion (2)

25. Thank you for attention!