EIB Partners with Latvia to Supercharge High-Growth Sectors and Scale-Up Innovation Economy

The European Investment Bank (EIB) has launched a strategic advisory partnership with Latvia aimed at accelerating the growth of high-potential industries, strengthening the country's innovation ecosystem, and enabling local companies to scale globally.

Through close collaboration with Latvia's Ministry of Economics and the Investment and Development Agency of Latvia (LIAA), the initiative will provide targeted expertise, policy guidance, and financial strategy support to unlock the next phase of Latvia's economic transformation.

From Innovation to Scale: Latvia's Next Growth Challenge

Latvia has emerged as a promising innovation hub in the Baltic region, with a rapidly expanding startup ecosystem. By the end of 2025:

• Around 560 startups were operating in the country

• Generating over €600 million in annual turnover

• Employing more than 5,000 people

Despite this momentum, structural challenges remain—particularly in early-stage funding gaps, scale-up financing, and international expansion barriers for deep-tech and science-based companies.

"Latvia has built a strong foundation for innovation, but the next step is scale," said Minister for Economics Viktors Valainis, emphasizing the need to transition from startup creation to global competitiveness.

EIB to Deliver Strategic Blueprint for Growth

Under the new partnership, EIB experts will conduct a comprehensive assessment of Latvia's innovation landscape, focusing on:

• The effectiveness of current policy frameworks and financial instruments

• Support mechanisms for startups, research institutions, and emerging technologies

• Opportunities to improve access to capital across growth stages

• Strategies to strengthen international competitiveness and investment attraction

The advisory work, scheduled to run through the end of the year, will culminate in a detailed roadmap and policy recommendations to enhance Latvia's innovation system.

Unlocking Baltic Synergies

A key dimension of the initiative is exploring deeper collaboration across the Baltic region. The EIB will assess opportunities for greater alignment between Latvia, Estonia, and Lithuania, aiming to create cross-border innovation initiatives and shared investment platforms.

Such regional integration could:

• Expand market access for startups

• Strengthen supply chains and research collaboration

• Position the Baltics as a unified innovation cluster within Europe

Building Institutional Capacity and Investment Readiness

Beyond policy recommendations, the EIB will deliver a capacity-building programme targeting public authorities and institutions involved in innovation and economic development.

This includes:

• Training on designing modern financial instruments

• Enhancing capabilities to attract EU funding

• Supporting long-term strategic investment planning

• Strengthening implementation of innovation support measures

As part of the pilot phase, the EIB will also assess Riga Technical University's development strategy, demonstrating how major academic institutions can act as anchors for national innovation and economic growth.

Addressing Funding Gaps and Scaling Barriers

Industry stakeholders have highlighted persistent challenges in Latvia's innovation ecosystem, including:

• Uneven access to venture capital and scale-up financing

• Limited pipeline of high-quality, investment-ready projects

• Fragmented support mechanisms across agencies

• Difficulties for deep-tech firms in entering global markets

The EIB's advisory intervention aims to address these bottlenecks through data-driven solutions aligned with market realities.

"This partnership allows us to take a more targeted and practical approach," said LIAA Director Ieva Jāgere. "Our goal is to help more Latvian companies expand internationally and attract higher-value investment."

Strengthening Europe's Innovation Landscape

The initiative is part of the InvestEU Advisory Hub, a flagship EU programme designed to mobilize expertise and investment across member states.

EIB Vice-President Karl Nehammer highlighted the broader significance:"By strengthening national capacities and aligning with Europe's most dynamic innovation networks, Latvia can amplify its strengths and attract more strategic investment."

A Strategic Turning Point for Latvia

As global competition intensifies in technology and innovation, Latvia's partnership with the EIB represents a critical step toward building a more scalable, resilient, and internationally competitive economy.

By combining policy reform, financial innovation, and regional cooperation, the initiative aims to transform Latvia from a growing startup ecosystem into a leading European hub for high-growth and deep-tech companies.

The coming months will be pivotal as Latvia works to convert its innovation potential into sustained economic impact—positioning itself at the forefront of Europe's next wave of technological growth.