Since 2017, 155 projects have been implemented under the Investment and Development Agency of Latvia (LIAA) Innovation Voucher Support Services programme, and 143 are under development. The programme offers the opportunity to attract funding of up to EUR 25,000 for the development of new products and technologies that contribute to the growth of the Latvian economy.
“Almost every company's competitiveness is based on innovation, so we are pleased that the Voucher Programme is highly appreciated by entrepreneurs. It is noteworthy that the programme covers a very wide range of industries, from agriculture, construction, food processing, tourism to the development of various smart materials and biotechnology. The total funding of the programme is EUR 4.7 million and 95% of this funding has already been committed or reserved,” emphasises LIAA Director General Kaspars Rožkalns, adding that by implementing these projects, entrepreneurs will have invested an additional EUR 2.3 million in research and development.
The aim of the programme is to stimulate innovation activity in the business environment by ensuring technology transfer, supporting the development of new innovative technologies or the development of existing technologies. The companies applying for support operate in different industries, but all of them have the aim to make their product more competitive not only in Latvia, but also globally.
The programme is open to young entrepreneurs with an innovative idea, as well as to companies that need support to improve their technological solutions in order to increase their competitiveness. Entrepreneurs can apply for three types of vouchers: introductory, classic or design vouchers.
Since 2017, a total of 329 Voucher Support contracts have been signed, of which 155 have been finalised, 143 are under preparation and 31 have been terminated at the initiative of entrepreneurs. The experience so far shows that entrepreneurs are most interested in the classic voucher, which can provide a maximum support of up to EUR 25,000. This type of voucher covers the implementation of research activities, including prototyping, certification and testing services, securing industrial property rights and the recruitment of highly qualified specialists.
In 2022, 57 projects have been submitted to the Voucher Programme and 42 contracts have been signed so far for a total amount of EUR 959,105.
The support provided by the vouchers is used by companies in various sectors, including the industrial hemp grower ‘Peltman’. “The LIAA Voucher Programme is a real hit; it is practical. The cooperation experience of ‘Peltman’ with LIAA proves that a state institution can be dynamic, helpful and supportive. This cooperation has given our company the right momentum to develop new products together with our scientific partners. We are already working on our second product, based on industrial hemp. The first product is for animal welfare and the second for construction. We have created panels for interior decoration from hemp,” says representative of ‘Peltman’, Ernests Plūmiņš.
“To promote and develop industrial hemp cultivation and processing, this year we have already brought together 10 teams of farmers who will be able to provide raw material for the production processes. This is a growing movement that on the one hand allows the small grower to gain the necessary knowledge and support, and on the other hand avoids various risks by collectively organising the pre-processing and sales process,” states Plūmiņš.
Owner of the motor transport company ‘Global Wolf Motors’ Klāvs Ašmanis, says that the Voucher Programme is a good tool to support the company's development: “The project implemented in cooperation with LIAA in the Innovation Voucher Programme allowed our company to significantly reduce the cost and production time of the product. As every start-up company faces difficulties in finding finance to implement such product improvements, we are grateful for this opportunity and see it as significant support in our development.”
Innovation is most often linked to research, which is why the Voucher Programme focuses on the commercialisation of research results. Glass manufacturing company ‘GroGlass’ cooperated with the Institute of Institute of Solid State Physics, University of Latvia in the Voucher Programme, while plumbing, water purification and other equipment manufacturer ‘Virte Tehnoloģijas’ cooperated with the Latvia University of Life Sciences and Technologies (LLU).
“The Voucher is a great opportunity to develop new products with the support of scientific institutions. Our company cooperated with LLU to develop a prototype of an innovative machine. Currently, the prototype still needs monitoring, which we are also planning to carry out with the support of the Voucher Programme," says Director of the ‘Virte Tehnoloģijas’ Iveta Damberga.
Tourism companies also use technology and develop innovative solutions – ‘Vanilla Travel’, in cooperation with Riga Technical University and ‘DESS GROUP’, worked on a new technological solution to improve the efficiency of tourism services. The potential of the first virtual assistant for the tourism industry was tested.
“The Innovation Voucher was a great opportunity for us to test the technical feasibility of our idea and to start cooperation with Riga Technical University. It turned out that we were the first in Latvia to start the industrial design of a product with a prototype and to implement the pilot development of a new and innovative service in the field of tourism. We are very pleased that we succeeded in what we planned and that we have reached a working prototype of the first virtual tourist assistant. This gives us the opportunity to continue our successful development both on our own and with additional funding,” says Chairperson of the Board of ‘Vanilla Travel’, Inga Kavaca.
It is well known that the food industry is regularly looking for new opportunities, not only in recipes, but also in industrial solutions that will contribute to the company's competitiveness through a variety of innovative solutions that have not yet been explored. The beverage production company ‘Valmiermuižas alus’ has recruited experts through the Voucher Programme to discover new opportunities in the production process. “From day one, ‘Valmiermuiža alus’ has been seeking and creating new, ever richer flavours. Flavour creativity or innovation is not always possible on our own, when it requires new brewing methods or technologies that we have not experienced before. The Innovation Voucher helped to attract and co-finance experts from LLU to create a new brewing process in order to create new flavours using Latvian rye malts,” reveals Owner of ‘Valmiermuižas alus’ brewery, Aigars Ruņģis. It should be emphasised that ‘Valmiermuižas alus’ also used the second voucher and in the first stage attracted highly qualified staff to develop technologies, processes and improve the material and technical base for beer production.
To be eligible for the Voucher Programme, a business and development plan for the development of a new product or technology must be justified and meet various criteria, such as: the new product or technology has a justified demand and identified advantages capable of increasing the competitiveness and productivity of the merchant, and the project will be implemented in the supported industries.
The programme will be available under the current conditions until the end of October 2023 – the deadline for businesses to complete the projects they have submitted – after which funding will be available under the new EU programming period, which is currently under development.