Latvia is the central country of the Baltic States and is located in North-eastern Europe on the east coast of the Baltic Sea.  It has an area of 64,589 km2 with a population of 2.26 millions. The country’s strategic location has made it an international crossroad for trade, commerce and cultural exchange since ancient times. Latvia’s three major ports - Rīga, Ventspils and Liepāja - service a wide range of global shipping needs and Ventspils is one of Europe’s leading ports in terms of cargo turnover.

Wood and metal products, food, machinery, electrical equipment, chemicals and mineral products are Latvia’s main exports. Latvia’s most active trading partners are Lithuania, Estonia, Russia, Germany, Sweden, Denmark and the United Kingdom. Despite the small financial resources (only 0, 61% of GDP for R&D; target for 2013 is 1,5%), Latvia has established the following priority directions in terms of innovative economy: commercialization of innovation; application of knowledge in boosting the competitiveness of companies; creation of new competitive companies; development of creative industries; internationalization of research and development; sustainable and efficient use of natural and energy resources.

Latvia’s challenge is developing of investments to regions accordingly to their economic perspectives and priorities thereby contributing balanced territorial strengthening and competitiveness.