Estonian and Lithuanian small and medium-sized enterprises (SMEs) are planning to focus more on innovations in 2015, while the number of Latvian SMEs that are planning to invest in innovations has contracted by 9 percent, according to a study conducted by SEB Baltic.
© Shutterstock nuotr.

In Estonia, 73 percent of the polled companies said they planned to invest in innovations during 2015, while a year ago 60 percent were planning to do so. Significant surge of innovation plans is observed in Lithuania: in 2015, 69 percent of SMEs plan to engage in innovation activities while a year ago only 42 percent had plans to innovate. However, in Latvia there is an opposite trend: the number of Latvian companies who are planning to innovate has fallen from 48 percent to 39 percent during last year.

"Through innovations, companies in Estonia, Latvia, and Lithuania aim at increasing competitiveness both in the domestic and international markets, especially as the low-cost production advantage of Baltic markets is gradually diminishing. Companies are aware that after investing in innovations, fewer resources are required in production or provision of services, which will have a positive impact on company finances. However, it is clear that inactivity of Latvian SMEs in terms of investment in new technologies and new products is a negative trend. In medium-term this attitude could lead to decreased competitiveness and diminished export capacity of Latvian companies," said Ieva Tetere, member of the board of SEB Bank of Latvia.

Product or service innovation is the preferred field, with 46 percent of Lithuanian, 36 percent of Estonian, and 26 percent of Latvian SMEs opting for that. 24 percent of all polled SMEs in Estonia, 14 percent in Lithuania, and only 6 percent in Latvia plan to invest in employee development. 11 percent of Estonian, 5 percent of Lithuanian, and 3 percent of Latvian SMEs have plans to change their business model next year.

It is forbidden to copy the text of this publication without a written permission from ELTA.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Baltic PMs meet on closer cooperation, security

The prime ministers of Lithuania, Latvia and Estonia met here on Monday on closer cooperation and...

Salary growth in the Baltic States. Estonia leads, Lithuania is not far behind

According to the biggest remuneration survey in the Baltics, conducted by “Baltic Salary Survey”,...

Upgrade2018! meetings in Vilnius and Riga indicate the importance of cross-Baltic cultural cooperation

International networking meetings realized in the frames of Cross-Baltic Upgrade2018! initiative in...

Lithuanian formin to attend Balts Awards ceremony in Riga

Lithuanian Foreign Minister Linas Linkevičius is leaving for Latvia on Wednesday to attend the...

The annual high-level security and defence forum – The Rīga Conference 2018

On 28 and 29th September the National Library of Latvia in Riga will host the annual high-level...