Baltic states want to become a center of innovation

The Baltic states are well placed to develop into a leading innovation center in Northern Europe. However, fragmented political strategies, limited access to growth capital and insufficient cooperation between business and research are slowing down the region's further development. This was the conclusion reached by participants at a major investment and innovation forum held in Riga on May 29. The Latvian investment promotion agency Labs of Latvia reported on this on June 1. At the "Beyond Borders" conference, investors, political decision-makers, scientists and business representatives discussed the future of the Baltic innovation landscape. Despite differing perspectives, there was broad agreement that Estonia, Latvia and Lithuania have a solid basis, but have not yet fully exploited their economic potential. Investors remain fundamentally optimistic Studies presented at the event show that Latvia continues to be an attractive location for foreign investment. At the same time, investor sentiment has dampened somewhat due to geopolitical uncertainties and domestic political challenges. Less than half of the foreign investors surveyed are currently planning to expand their investments. A growing proportion prefer to postpone planned investment decisions for the time being. Nevertheless, the basic tone remains positive. The majority of companies expect turnover to increase in the current year. Investors cited Latvia's competitive tax system and the availability of qualified specialists in particular as key locational advantages. Stronger links between research and business A central theme of the forum was the lack of integration between science and business. According to many participants, the scientific potential of the region has not yet been sufficiently translated into marketable products, services and innovative companies. This challenge is particularly evident in the start-up sector. Although the Baltic states have successfully positioned themselves in areas such as fintech, deep tech and artificial intelligence, many young companies are encountering financing problems as they expand. Access to growth capital in particular is considered a weak point. Numerous promising scale-ups are relocating their company headquarters abroad in order to find investors and financing opportunities more easily. Common market instead of competition The participants also emphasized that international investors increasingly perceive Estonia, Latvia and Lithuania as a common economic area. Within the region, however, the three countries often continue to compete for investment, talent and funding. According to many experts, greater regional cooperation could bring considerable benefits. Joint innovation strategies would increase international visibility, attract additional investment and strengthen the competitiveness of the Baltic region as a whole. The conference participants came to the conclusion that the region already has many of the necessary prerequisites for sustainable growth. These include well-trained specialists, modern infrastructure and a strong culture of innovation. However, in order to fully exploit the existing potential, more efficient political measures, closer cooperation between research institutions and companies and a coordinated Baltic innovation strategy are required. This is the only way the region can transform its innovative strength into stronger economic growth in the long term. The post Baltic region wants to become a center of innovation appeared first on ostwirtschaft.de.