On 17 April, Riga Castle hosted the presentation of the results of the National Competitiveness Commission’s study “Latvia’s Major Exporting and Innovative Companies on Competitiveness and the Business Environment”.
"Today we had the opportunity to familiarise ourselves with the findings of the National Competitiveness Commission’s study, which summarises the perspectives of Latvia’s largest exporting companies on the national business environment and competitiveness. I extend my sincere thanks to those company representatives who responded and devoted their time to the interviews. I hope that each participant today – whether from public administration or the private sector – takes away at least one idea for meaningful change. Let this study serve as a step towards concrete action, not merely another discussion without results. The National Competitiveness Commission’s study will only be successful if it contributes real, practical solutions to support Latvian entrepreneurs. May we, in time, be able to say – ‘this truly worked’,” emphasised President Rinkēvičs in his address.
The study was conducted in 2024 with the aim of systematically classifying the key challenges in the areas of innovation, productivity, bureaucracy, collaboration, export capacity, and human capital. A total of 64 owners and senior executives from Latvia’s leading exporting companies participated in the study, which was carried out in cooperation with the Ministry of Economics.
The results of the study are planned to be implemented in four directions, focusing on the development of specific, practical solutions. The National Competitiveness Commission will implement the proposals throughout 2025.
First, to simplify the conditions for national and EU investment programmes. Excessive bureaucratic burdens currently discourage entrepreneurs from applying for and benefiting from available development programmes. President Rinkēvičs has raised this concern in discussions with both the Minister of Finance and the Minister for Economy. The Commission will provide practical recommendations to achieve a better balance between substantive project assessment and necessary control requirements.
Second, to foster collaboration between universities and the private sector. On the initiative of the National Competitiveness Commission, existing incentive mechanisms within higher education institutions will be reviewed to encourage researchers and academic staff to strengthen cooperation with businesses. In parallel, proposals will be developed to enhance the attraction of national private-sector funding for research and development.
Third, to reduce the volume of data and reports required by state institutions. One of the most significant concerns highlighted by entrepreneurs in almost every interview is the excessive amount of data requested by state institutions. These requests are often duplicative. The National Competitiveness Commission will develop proposals to improve the practical application of the “once-only” principle. In order to promote the public administration’s efforts to reduce bureaucratic burden, the Commission will also support the harmonisation of data requests from the three largest institutions – the Central Statistical Bureau, the State Revenue Service, and the Bank of Latvia – into a unified format.
Fourth, to improve cooperation between the private sector and state institutions. Several entrepreneurs highlighted the lack of straightforward and transparent communication with public administration. The National Competitiveness Commission will examine the ideas expressed in the study to formulate proposals for enhancing the efficiency of the State Revenue Service. These may include introducing dedicated advisors for major taxpayers, modernising the format of annual financial statements, and improving the coordination of information between the State Revenue Service and the Customs Administration.
