FACTORS AFFECTING THE DEVELOPMENT OF THE BIOECONOMY IN LATVIA

In the European Union, including Latvia, the development of the bioeconomy by exploiting the potential of research, innovation and knowledge transfer is considered to be the basis for economic growth. The research aims to assess the drivers of and barriers to bioeconomic development in Latvia and define actions facilitating the development of the national bioeconomy. The present research employed mostly SWOT analysis in combination with expert judgement. The research concluded that the overall trend in the following strengths of the bioeconomy: Research infrastructure and modern technical equipment for the development of the bioeconomic knowledge base (3S) and Vast regional coverage of and cooperation among leading research institutions in the field of bioeconomics (1S) was negative, as the total impact of the threats exceeded the total impact of the opportunities. However, the overall trend in the strength Extensive initial activities and the knowledge base for bioeconomic research (2S) was positive, as the total impact of the opportunities exceeded the total impact of the threats. The total impact of exogenous factors on the weaknesses in the development of the bioeconomy was positive; therefore, the total impact of exogenous factors tended to weaken the weaknesses. Since the largest positive impacts on endogenous factors were made by the following opportunities: Effective support for independent innovation projects implemented by large companies (3O) and Stimulation of innovation in the small and medium enterprise sector in active synergy with national research priorities and available funding (2IO), it is necessary to increase government and private sector funding for R&D in order to contribute to the development of the bioeconomy in Latvia. The availability of funding should be balanced and predictable in the long term to reduce the impact of the threat Public policies and insufficient and unpredictable funding for research and development hinder the development of bioeconomy industries and steady growth opportunities (2T). To encourage the business sector to invest in R&D, including in the bioeconomy industries, public support and various incentives for entrepreneurs are needed.