DIGITAL TRANSFORMATION OF LATVIAS ECONOMY Evita Feldberga Director

DIGITAL TRANSFORMATION OF LATVIA'S ECONOMY Evita Feldberga, Director of Sectoral Policy Department Riga

100, 000 50, 000 EXCPECTED OUTCOMES DIGITALIZATION R&D SMARTER EUROPE 0 1 11 -19 SKILLS 5 VALUE CHAIN STRATEGIES RIS 3 GOVERNANCE AND VALUE CHAIN DEVELOPMENT SUPPORT FOR DIGITALISATION HORIZONTAL ACTIVITIES SME DEVELOPMENT FINANCIAL INSTRUMENTS CLEAR FOCUS ON GOALS 8 HORIZON EUROPE PROJECTS CLUSTER VALUE CHAINS DOUBLE THE SIZE NUMBER OF REGIONAL FIRMS INCREASE FINANCIAL INSTRUMENTS AS REGIONAL AND NATIONAL SUPPORT FOR IMPLEMENTATION OF PROJECTS EXPORT INCREASE AS MAIN KPI EXCELENCE SMEs

Data democracy RIS 3 Vision DDN KONCEPT 2016 -2020 Citizen engagement Data Driven Innovation Data Driven Nation Through Smart Specialisation Bio-Economy Biomedicine PRECISION MEDICINE Smart Materials SMART CITY Smart Energy ICT PHOTONICS

RESULTS – PUBLIC SECTOR ü ü LATVIA SIGNIFICANTLY INCREASED ACCESS AND UPTAKE OF DATA UPTAKE OF CLOUD COMPUTING USAGE IN PUBLIC ADMINISTRATION ü UPTAKE OF ARTIFICIAL INTELLIGENCE USAGE IN PUBLIC ADMINISTRATION 73. 70 65. 20 54. 00 57. 50 53. 70 EU AVARAGE 49. 00 ü DATA-ENABLED CITIZEN ENGAGEMENT IN THE PUBLIC ADMINISTRA-TION PROCESS ü WIDE-SPREAD ACCESS TO EDUCATIONAL RESOURCES FOR TEACHERS AND CITIZENS 57. 00 55. 00 62. 90 DIGITAL PUBLIC SERVICES 2015 2016 2017 2018 2019

RESULTS – PRIVATE SECTOR 42. 1 ü ADAPTATION OF THE LEGISLATIVE FRAMEWORK ü INNOVATION SUPPORT PROGRAMS 38. 5 33 27 22. 7 25. 9 LATVIA 21 19 ü STATE OWNED COMPANIES R&D PROMOTION INTEGRATION OF DIGITAL TECHNOLOGIES ü CO-STRATEGY DEVELOPMENT ü INNOVATION PROJECTS ü STRATEGY ADAPTION INITIATIVES EU AVARAGE 35 ü R&D INVESTMENT STRATEGY REVIEW ü ECOSYSTEM DEVELOPMENT TROUGH RIS 3 41. 6 2015 2016 2017 2018 2019

CONCLUSIONS • PUBLIC SECTOR HAVE LEADER POSITION IN DIGITAL TRANSFORMATION PROCESES • PRIVATE SECTOR DIGITALISATION ACTIVITIES IS FRAGMENTED • UPTAKE OF DIGITAL TECHNOLOGIES ARE EXPLICITY LOW AMOUNG SME’S • AWARENESS OF THE RELEVANCE OF DIGITAL SKILLS AND MOTIVATION FOR LIFE-LONG LEARNING IN THE LABOUR MARKET IS LOW • DIGITAL SKILLS AMONG THE GENERAL PUBLIC IS BELOW AVARAGE WHICH IS REFLECTING IN BUSINESS PRODUCTIVITY

SUCCESS STORIES Tilde machine translation technology announced as the world's most accurate at the WMT competition, ahead of other competitors - the leading machine translation technology companies and research centers from the US, Europe, and Asia. This achievement at WMT 2019 marks the third consecutive year Tilde has taken the leader position in developing machine translation technologies. Mikro. Tik is a Latvian network equipment manufacturer. The company develops and sells in most of the countries around the world wired and wireless network routers, network switches, access points, as well as operating systems and auxiliary software. Infogram is a web-based data visualization and infographics platform, created in Riga, Latvia and has another office in San Francisco. Infogram has 3 million users who have created charts and infographics that have been viewed more than 1. 5 billion times. The company also won the 2013 Kantar Information Is Beautiful Award, which “celebrates excellence and beauty in data visualizations,  infographics, interactives &  information art. ” MADARA Cosmetics also known as MÁDARA, is a Latvian manufacturer of organic skin care, hair care and baby care products. Each product is exclusively developed and manufactured in MADARA Cosmetics own laboratories and production facilities, enabling to take 100% control over all processes. Organic ECOCERT certification, GMP and ISO standards, in vitro and in vivo researches emphasize MADARA Cosmetics’ passion for quality and perfection in every detail. The company exports its own brand products worldwide as well as offers contract manufacturing services. Groglass is one of the world’s leading developers and manufacturers of anti-reflective and other high-performance coatings on glass and acrylic for various industries: high-end electronic and static displays, picture framing, museum showcases, architecture and other applications. Light Guide Optics is the leading European manufacturer and supplier of optical fibres, fibre bundles, cables and laser delivery systems used for sophisticated scientific, industrial and medical applications. Primekss is based in North-East of Europe with headquarters in Riga, Latvia, direct subsidiaries in 10 countries and partners worldwide. Ambition is to make concrete that is 50% stronger, produces 40% fewer CO 2 emissions and is 30% faster to install. Aim is for 80% of concrete structures worldwide to be built using Primekss solutions.

DDN

DDN 99. 4% SME’s

DDN TO BOOST THE DIGITAL TRANSFORMATION OF THE LATVIAN ECONOMY, IT IS IMPORTANT TO FURTHER RAISE AWARENESS OF THE IMPORTANCE OF DIGITISATION IN SMES AND TO STEP UP EXISTING EFFORTS, TO ENABLE THE FULL RANGE OF BENEFITS TO BE REAPED FROM THE ADOPTION OF DIGITAL TECHNOLOGIES BY BUSINESSES 99. 4% SME’s

DDN DIGITAL EXCELLENCIES TO BOOST THE DIGITAL TRANSFORMATION OF THE LATVIAN ECONOMY, IT IS IMPORTANT TO FURTHER RAISE AWARENESS OF THE IMPORTANCE OF DIGITISATION IN SMES AND TO STEP UP EXISTING EFFORTS, TO ENABLE THE FULL RANGE OF BENEFITS TO BE REAPED FROM THE ADOPTION OF DIGITAL TECHNOLOGIES BY BUSINESSES 99. 4% SME’s AVERAGE LEVEL OF DIGITALISATION

DDN 2. 0 2021 -2027 Data democracy Citizen engagement Infrastructure Data Driven Innovation Data Driven Nation Through Multistakeholder cooperation

DDN 2. 0 2021 -2027 Data democracy Citizen engagement Infrastructure Data Driven Innovation Data Driven Nation Through Multistakeholder cooperation RIS 3 ZERO PAPER ECONOMY Digital Advancement And Skills

DDN 2. 0 Data Driven Innovation Data democracy Citizen engagement Infrastructure GOVERNMENT AS A PLATFORM Data Driven Nation Through Multistakeholder cooperation RIS 3 ZERO PAPER ECONOMY Digital Advancement And Skills

FOCUS Data democracy Other Ministries Citizen engagement Infrastructure GOVERNMENT AS A PLATFORM Ministry of Economics Ministry of Environmental Protection and Regional Development • Coordination of digital transformation innitiatives • Open data and Data sharing infrastructure • Digital skills and habits develpment • ICT platforms and solutions for Digital economy • Integration in EU Single Digital Market and adoption of EU legislation (public and private) • Digital by default implementation in legislation trough business environment improvement plan

DDN 2. 0 Data Driven Innovation Data democracy Citizen engagement Infrastructure GOVERNMENT AS A PLATFORM Data Driven Nation Through Multistakeholder cooperation RIS 3 ZERO PAPER ECONOMY Digital Advancement And Skills

VISION Smart Specialization Strategy - RIS 3 Bio-Economy Biomedicine Smart Materials Digital Advancement And Skills Smart Energy Smart City AIM: to sustaine digital excellence by developing innovative digital solutions and technologies through RIS 3 collaboration platform adressing global challanges within priority areas

FOCUS INVESTMENT PRIORITIES: • • • ARTIFICIAL INTELLIGENCE CYBERSECURITY TECHNOLOGIES (BLOCKCHAIN) ADVANCED DIGITAL SKILLS SUPERCOMPUTING INVESTMENT FORMAT: • • • NATIONAL LEVEL COLABORATION PROJECTS INTERNATIONALIZATION TESTING HIGH RISK DIGITAL INNOVATIONS GLOBAL LEVEL EDUACTIONAL TRAINING PUBLIC INVESTMENT ACCELERATION Smart City

VISION Zero Paper Economy B B 2 G B 2 B B 2 C Digital Advancement And Skills AIM: the aim is to transform business environmental processes between economic operators and the public sector, as well as business processes (especially SMEs) by switching from paper to digital format, thereby contributing to the digital transformation of the Latvian economy and innovation promotion

ZPE IMPLEMENTATION TARGETED BENEFICIARIES (COMPANIES) WITH DIFFERENT DIGITALIZATION MATURITY LEVEL: Ø NON-EXISTENT (CHAOTIC) Ø AD-HOC (ISOLATED) Ø MANAGED (SYSTEMATIC) Ø DEFINED (STRATEGIC) Ø OPTIMIZED (DATA DRIVEN)* *digital maturity model developed by SAP in 2017 ACTIVITIES NEEDED: RAISING AWARENESS DT IS DRIVEN OCCASIONALY, IS NOT UNDERSTOOD OR NOT EVEN YET RECOGNIZED DT IS TARGETED TROUGH SYSTEMATIC PROCESSIES, STRATEGIES AND CONSTANT IMPROVEMENTS DIGITAL SKILL TRAINING ADVANCE DIGITAL SKILL DEVELOPMENT

ZPE IMPLEMENTATION RAIS AWARENESS AIM: INCREASE DEMAND OF DIGITAL PRODUCTS AND SERVICIES ACTION: IMPLEMENT ZERO PAPER ECONOMY MARKETING STRATEGY TO CREATE SOCIAL MOVEMENT TOWARDS DIGITAL TRANSFORMATION

ZPE IMPLEMENTATION DA AIM: INCREASE ACCESSIBILITY FOR DIGITAL GUIDANCE IN REGIONAL PERSPECTIVE 800+ CONTACT POINTS (IN SYNERGY WITH Mo. EPRD) DIGITAL AGENTS (IN SYNERGY WITH Mo. EPRD) DIGITAL EXCELLENCE CENTER (IN SYNERGY WITH Mo. ER) DEC AIM: TO CREATE A NATIONAL-LEVEL DIGITIZATION TRANSFORMATION CONTENT HOLDER AND CREATOR

DIGITAL EXCELLENCE CENTER OUTCOMES: DIGITAL INNOVATION HUB EDUCATION CONTENT CENTER DIGITAL EXCELLENCE DEVELOPER • A UNIFIED DIGITAL SKILLS DEVELOPMENT • LONG-TERM AND SHORT-TERM EXPOSURE • LINKAGE BETWEEN BUSINESS AND EDUCATIONAL NEEDS • SERVING DIFFERENT CUSTOMER GROUPS

DDN 2. 0 Data Driven Innovation Data democracy Citizen engagement Infrastructure GOVERNMENT AS A PLATFORM Data Driven Nation Through Multistakeholder cooperation RIS 3 ZERO PAPER ECONOMY Digital Advancement And Skills

DIGITAL TRANSFORMATION COORDINATION RAISING AWARENESS BOTTOM UP GRANT FOR COORDINATION OF ZERO PAPER ECONOMY STRATEGY IMPLEMENTATION (NATIONAL DIGITALISATION COORDINATION FUNCTION SET UP) IMPLEMENTATION BODY: MOE AND PUBLIC AGENCY (LIAA) TOP DOWN SUPPORT PROGRAMMES (45 M) GRANT FOR IMPLEMENTATION OF ZERO PAPER ECONOMY MARKETING STRATEGY TO CREATE SOCIAL MOVEMENT TOWARDS DIGITAL TRANSFORMATION IMPLEMENTATION BODY: PUBLIC AGENCY (LIAA) GRANT FOR TRAIN THE TRAINEES-DIGITAL AGENTS TO ASSIST IN BUSINESS DIGITALISATION IN REGIONS IMPLEMENTATION BODY: DIH BUSINESS DIGITAL TRANSFORMATION ACTIVITIES GRANT TO SUPPORT DIGITAL TECHNOLOGY UPTAKE GUIDLIENE TROUGH DIGITAL INNOVATION HUBS TARGET: DIH GRANT FOR DIGITAL SKILL TRAINING FOR SME’S (BASIC SKILLS, DATA MANAGMENT, ONLINE TRADE, ETC. ) GRANT FOR ADVANCED DIGITAL TRAINING (ARTIFICIAL INTELLIGENCE, CYBERSECURITY, TECHNOLOGIES (BLOCKCHAIN) ACCORDING TO RIS 3 PRIORITIES) FOR NEW SPECIALISTS COMBINED LOAN FOR DIGITALIZATION OF INDUSTRY R&I PROMOTION MULTISTAGE VC FUND (ACCELERATOR) FOR PUBLIC ADMINISTRATION DIGITAL PLATFORM COMMERCIALIZATION