Latvia Knowledge Economy Assessment 2002 - 2003 ( The World Bank )

The assessment evaluates opportunities and challenges of building an innovative knowledge economy in Latvia.

A knowledge and high technologies intensive competitive national economy depends on four pillars:

The education system producing knowledge intensive human capital;

The economic and institutional framework which promotes the application of knowledge in business activities and application of high technologies in the industrial development;

A national innovation system which unites private companies, universities and research centers in the creation of new products and services;

Information and communication technology society which ensures an efficient diffusion and transfer of information

"With the EU membership on the horizon, Latvia's competitiveness within a single EU market is gaining in importance. In 2002, the Government of Latvia asked the World Bank to make an assessment of the country's knowledge economy, with specific emphasis on higher education and science, business and innovation environment for high technology companies as well as possibilities of creating a commercially oriented innovation system. The assessment of Latvia's knowledge economy comprises three reports which have been prepared by the World Bank experts in cooperation with the Latvian institutions:
1. "Creating a 21st Century National Innovation System for a 21st Century for Latvian Economy" was produced in cooperation with the Ministry of Economy.

2. "Toward a Knowledge Economy: Upgrading the Investment Climate and Enhancing Technology Transfers" was produced in cooperation with the Ministry of Economy and the Latvian Development Agency.

3. "Higher Education: Changing Conditions, Problems, Tasks and Policy Solutions" was produced in cooperation with the Ministry of Education and Science.

These studies focus on particular sectors of the economy, including higher education and science, R&D, as well as business and innovation environment. To study the current situation in Latvia and highlight the opportunities for building a knowledge-intensive and globally competitive economy, the assessment also focuses on the private and public inputs and investment in these areas. The assessment of Latvia's knowledge economy aims at providing the Government of Latvia with the World Bank recommendations regarding the policy implementation and promoting the creation of knowledge based and competitive economy in the context of the European Union. Basing on this assessment, the Ministry of Economy has developed an Action Plan for the National Innovation Program mapping out specific activities for the creation of an efficient innovation system."