LATVIAN INNOVATION ACTIVITY AND PERSPECTIVES IN THE EU CONTEXT
Keywords:Innovation, Europe 2020 Strategy, innovation co-operation, R&D intensity, high-growth enterprises
The new Europe 2020 Strategy for smart, sustainable and inclusive growth has identified innovation as one of the core drivers that can get European countries out of the current economic crisis. The Europe 2020 Strategy sets a 3% of the EU’s GDP to be invested in R&D to reach smart growth of the European countries. Most Member States have adopted its own target according to its self-estimated capacity in order to reach this goal for the EU. The Europe 2020 Strategy announced the development of an innovation indicator to measure Europe's progress towards a more innovative economy. The indicator will measure the strategy's progress and aims to capture overall research and innovation performance and reasons why it differs between Member States. An important aspect of the indicator is that it should allow comparability on the global level. The new innovation indicator should estimate the share of high-growth innovative enterprises in the economy and stimulate Member States to adopt the necessary measures to progress in the area of high-growth innovative enterprises in their National Reform Plans.
The paper aims to show innovation performance of Latvia within the EU context and discuss the usability of the new concept of high-growth innovative enterprises.
Authors have no fundamental objection to the new approach of calculating high-growth enterprises for innovation indicator, but in author’s view some more analysis should be made to define the criteria of high-growth enterprises and some tests should be made with employment in 10 and more employees and 10% threshold for annual average growth.
The results of the authors’ research show that in Latvia, high-growth enterprises represent a small percentage of the overall number of enterprises. As a result, Latvia should adjust the new principles of sampling methodology to assess the possibility of including the largest number of high-growth enterprises in the innovation survey sample.
The theoretical and methodological evidence is based on the analysis of the economic literature, scientific works, the legal documents of European Commission; the statistics database of the Central Statistical Bureau of Latvia; Eurostat and other international statistical and methodological materials.Bibliography review, as well as methods of statistical analysis such as grouping, processing and comparative analysis has mainly been used in the paper.