Latvia allocates €98.4M to create innovative products

Latvia will allocate €98.4M to entrepreneurs to create innovative products, including dual-use products. The money will come from European Union funds in the form of a state loan. €83.6M of this amount will come from the ERDF, and €14.8M will be allocated from the state budget. In addition, €71.4M will be provided by private investors.

The state support of innovative and dual-use innovative products will be in the form of a loan, provided by state-owned development finance institution Altum with capital repayment or a parallel loan with capital repayment. The loan amount for one entrepreneur will be from €300K to €5M. The maximum amount of capital repayment provided by Altum will be up to 30%, but not more than €1.5M. At the same time, for research and development activities, entrepreneurs will get a loan from Altum from €300K to €1M. The capital repayment in this case will not be granted.

The investment will be directed to research, development, and creation of new products, as well as support for the construction of new industrial buildings, the purchase of equipment, the establishment of production links, and the creation of new jobs in the areas of the smart specialization strategy.

According to the Minister of Economy Viktors Valainis, Latvia expects to create at least 40 new products and 240 jobs with salaries above the average of the regional economy by 2029.