Electronics and Electrical Manufacturing and Engineering

The electronics and electrical engineering (E&E) industry in Latvia has a long and impressive history. It is now one of the most promising and important manufacturing sectors due to its remarkable ability to export high-tech products. E&E, as most Latvian manufacturing, has survived the economy's transition to a free market and now shows a high growth rate. To ensure this development is sustainable, it is vital to define a development strategy for the sector, covering education, science and industry objectives.

Over the last four years, the electrical engineering and electronics sector has grown at an average of more than 20% a year. Sector output reached 410 million EUR in 2008, more than 6% of Latvia's total manufacturing output.

The sector has strong historical traditions in Latvia - the legendary VEF Minox miniature camera, invented at the VEF factory in 1937, is known all over the world; telephones and radio-sets made in Latvia are still used and fondly remembered in former USSR countries. This success was achieved through the efforts of Latvia’s highly qualified speciālists

The main companies active in the sector have available the full range of technologies necessary for the complete production process, including tool-making and software development.

Today the industry employs a more than 9 600 person, which is ten times less than at the peak of production, the end of 1980s. The intellectual potential that the industry possesses is stimulating the sector's high growth rate and the export proportion of 73% and export destination countries testify to the competitiveness of the industry in the international arena.

Sector Output (mln EUR)

Source: Central Statistical Bureau of Latvia, 2010

Sector Exports
The electronics and electrical engineering sector is classified as high-tech and middle-to-high tech. Although the electronics and electrical engineering industry in Latvia is export-oriented, it only contributes a small share of Latvia’s total exports. Electronics and electrical engineering products make up 8% of total Latvian industrial products exports (2009).

The Russian economic crisis in (1998) badly impacted on production and export volumes of the electronics and electrical engineering industry. As a result, export was volatile and even decreased by 9.5% in 1998 and by 18% in 1999. The export of electronics and electrical engineering products increased by 24% in 2008, but decreased by 8.5% in 2009. 

Exports by Country, 2008

Source: Central Statistical Bureau of Latvia, 2009

Sector Advantages

• well-established traditions in engineering and electronics manufacturing
• an educated, skilled, cost effective workforce, around 1000 technical staff and 100 qualified engineers entering the labour market each year
• EU quality levels achieved
• strategic location between the east and west, ideally suited for targeting the Baltic Sea region and Russian markets
• well-developed professional services, telecommunications and IT, energy, financial, logistics and transport systems
• excellent foreign language skills

Additional Information

• www.letera.lv – Latvian Electrical Engineering and Electronics Industry Association
• www.lebic.lv – Business Innovation Centre of the Latvian Electronic Industry