Latvia’s National Industrial Policy Guidelines 2021-2027

February 2021

View the original document

Strategies and Action Plans

The National Industrial Policy (NIP) Guidelines 2021-2027 is a medium-term strategic document aimed at fostering economic growth across all sectors in Latvia. It outlines goals and key action areas for the next seven years. The Ministry of Economics, in collaboration with other line ministries, is responsible for its implementation.

The guidelines address challenges posed by a rapidly evolving labour market, emphasising the need for continuous employee learning and employer investments in technology and education. The key focus areas are:

Key action lines:

  1. Strengthening human capital
    • Build a competitive workforce by promoting STEM and cross-disciplinary skills in education.
    • Enhance alignment between labor supply and market demand through regional employment support and improved mobility.
    • Train and attract highly skilled specialists in IT, STEM, and management, fostering innovation and technological advancements.
    • Equip the workforce with IT and digital skills to boost productivity and exports.
    • Support employment of pre-retirement individuals and economically inactive populations.
    • Develop sector-specific adult learning programs based on economic needs.
  2. Enhancing the business environment
    • Facilitate export growth by supporting infrastructure that generates high-value products and services.
  3. Building and strengthening infrastructure
    • Transition to a green economy using digital and innovative solutions to increase production capacity and improve public infrastructure management.
  4. Increasing innovation capacity
    • Promote innovation through investments in human capital, infrastructure, and enabling environments for high-value activities.
  5. Improving access to finance
    • Ensure financial support for businesses, addressing risks in service industries.

Challenges and focus areas:

  • The lack of adequately qualified workers poses a threat to Latvia’s competitiveness.
  • Mitigating COVID-19 effects requires equipping growth sectors with skilled human capital and implementing proactive policies to respond to economic shifts.
  • Effective use of ICT solutions is critical for labour market forecasting, data acquisition, and communication between institutions.

By addressing these priorities, the guidelines aim to enhance workforce skills, boost innovation, improve economic resilience, and promote sustainable growth.