Entrepreneurs and organizations implementing business/commercial processes can access grant support to digitalize processes and/or develop and apply artificial intelligence (AI) solutions, to enhance competitiveness and productivity.

Support is given in the form of a grant:

• Up to 10 000 EUR, 50% support for new digital solutions (acquisition, development, implementation)
• Up to 200 000 EUR, 50% support for artificial intelligence solutions (development & implementation)
• Up to 10 000 EUR, 50% support forDigital maturity assessment, digital road-map

Eligible applicants

• Companies in Latvia - micro, small, medium, and large companies, depending on capitalisation status (small mid-caps and mid-caps)

• Associations & Foundations (non-profits) that engage in economic activity; in some cases, associations that represent or unite at least three commercial entities

Eligible costs:

• Acquisition, development, prototyping, installation, customization of ready-made digital or AI solutions, hardware, sensors, equipment, software, and information technology infrastructure. 

• License or subscription costs, certification. 

• Consulting costs related to specific equipment, software/solutions, including for AI solutions, or for adaptation, integration, maintenance. 

• For AI solutions specifically: data acquisition, collection, processing; robotization; infrastructure for AI systems; upkeep / maintenance.

Supported processes:

1. Administrative processes — finance & accounting; document management; project management; administration; system compatibility; cooperation tools.

2. Personnel / HR processes — human resources management; time tracking and work delegation; evaluation, motivation, staff involvement. 

3. Sales & marketing — customer acquisition; sales / transaction management automation; CRM; e-commerce; digital marketing; solutions for retail. 

4. Resource management — ERP systems; warehouse management; effective use of energy and other resources. 

5. Data management — data security; data storage; communications infrastructure. 

6. Transport & logistics — Internet of Things; smart mobility; perception systems; traffic monitoring. 

7. Production & quality control — process automation; quality control systems; data synchronization; analytics. 

8. Operational management — business analytics; big data; decision-making tools; data automation & synchronization.

9. Strategic management & innovation — development of digitalization and AI strategy; innovation processes. 

10. Other ICT-related improvements — security, technology updates, processes related to information & communication technologies.

!!! Submission of applications is temporarily suspended!

A capital company with a high growth potential the basic activity of which is related to the development, production or improvement of scalable business models and innovative products under the Law on Aid for the Activities of Start-up Companies may qualify for the following aid:

• An aid programme for the fixed payment

The start-up company has the right to apply for a fixed payment for the employee from the amount of the two minimum monthly wages set by the Cabinet of Ministers, applying the mandatory contribution rate.

• Aid Programme for Attracting Highly Qualified Employees

A start-up company has the right to apply for an aid programme for attracting highly qualified employees. The Cabinet shall issue regulations regarding aid programme for attracting highly qualified employees by determining the procedures for granting the aid to start-up companies.

Support of up to 45% (up to 200 000 EUR) of eligible costs is limited to activities in the smart specialization or RIS3 areas, which include:

• biomedicine, medical technology, pharmaceuticals;
• information and communication technologies;
• photonics, smart materials, technologies, and engineering systems;
• knowledge-intensive economy;
• smart energy and mobility.

For more information - here.

• Personal income tax relief

An employee of the start-up company is exempt from the personal income tax if regarding him or her a fixed payment has been made for the income subject to a payroll tax obtained in the start-up company.

Find more information here.

Acceptance of applications is open while funding is available.

The program is implemented with the support of the European Regional Development Fund and state budget funding. The total budget of the program is 61.16 million euros.

Directions and sub-programs of the SME Innovative Business Development Program

1. Export Support (24 million euros):

• Support for export activities that strengthen and enhance the export capability of products and services.
• Support for organizing international sports events and exhibitions.
• Establishing contacts abroad (the activity will be available in December 2023).
• Participation in national stands (the activity will be available in December 2023).
• Participation in trade missions and visits by high-level state officials abroad (the activity will be available in December 2023).

2. Business Incubation Support (33 million euros. This program will be available in early 2024)

3. Innovation Motivation Support (4.16 million euros. This program will be available in early 2024)

Program Targets (by 2027)

• Support for 700 exporting companies;
• A minimum 12% increase in turnover for program implementers;
• An annual 20% increase in export volume;
• Creation of 1000 new jobs;
• Supported merchants contributing 150 million euros in taxes annually.

The programme will be implemented by the Investment and Development Agency of Latvia.

Investment and Development Agency of Latvia (LIAA) offers Latvian merchants the opportunity to develop new products and technologies in cooperation with research organizations. As a result, the innovations introduced by Latvian entrepreneurs will increase the share of innovative merchants in the economy.

The innovation voucher programme foresees four types of vouchers – introductory, classic, design voucher and attracting highly qualified staff – and supports the following supported activities:

• feasibility studies;
• industrial research;
• experimental development;
• development of industrial design of the product;
• strengthening industrial property rights;
• certification and testing services for a new product or technology;
• attraction of highly qualified employees;
• designer service.

Voucher support is intended for small (micro), small and medium-sized enterprises. A voucher is like a letter of guarantee to the service provider regarding the payment of the development part of a particular product.

LIAA will start accepting applications for the innovation voucher support programme on 8 May, which, in cooperation with research organisations, will allow the development of new products and technologies, providing support for the development of up to 25,000 euros for the development of a product or technology.

The aid is co-financed by the European Regional Development Fund.

EEN provides free services:

• Help with international partner search:
  • Organizing business missions and contact exchanges;
  • Business Cooperation Database – an opportunity to search for current business/ technology/ research cooperation offers, as well as to place your offer in the database. The database is available here;
  • Selection of contacts of potential cooperation partners.
• Prepares information about target market;
• Provides advice on legislative and business aspects (goods and services requirements, standardization issues, CE labelling, posting of workers abroad, etc.);
• Provides advice on access to finance (Horizon 2020, Erasmus, Creative Europe, Interreg, etc.);

EEN also helps to search partners for participation in international programs.
Learn more: Go to the webpage