Incentives for Promoting Innovation in Engineering

Engineering is a major industry in Latvian economy. It ranks third (to wood processing and food industry) in the amount of turnover. Due to the inflow of foreign investment, well-educated labor as well as export potential, engineering and metalworking have a promising outlook. However, this industry lacks competitiveness due to cutting investment and development expenses in this sector, as well as low added value. That said, the government should step up its policies to promote innovation activity of machinery manufacturers.