1Overall Information of the Ecosystem Descriptions

Analytical Description of the Ecosystem ofSmart Specialization Area “Knowledge-Intensive Bio-Economics”

Table of Contents

1Overall Information of the Ecosystem Descriptions

1.1Aim of the Smart Specialization Strategy

1.2Smart Specialization Strategy

1.3Definition of the Field of Ecosystem

1.4Methodology

2Description of the Key Participants of the Area

2.1Key Participants

2.2Graphical Representation of Participants of the Ecosystem

3Human Capital Available in the Area of Smart Specialization

3.1Number of Students

3.2Number of Scientific Staff

3.3Number of Employed People in Accordance with the NACE Codes over the Last Five Years

4Scientific Capacity

4.1Key Competencies in the Field of Bio-economics

5Results of the International Assessment of Scientific Institutions Operating in the area

6Industry Indicators in the Smart Specialization Area

6.1Sector Turnover in Accordance with the NACE Codes

6.2Sectoral Export Performance by NACE Codes of Sectors

6.3Sectoral Investments in R&D

6.4Number of Innovative Enterprises in the Particular Area

7Goals, Needs, Objectives and Comparative Results of the Smart Specialization Area

7.1Industry and Applied Research

7.2Ability to Conduct Research of Common Interest

7.3Fundamental Research and Excellence

7.4Smart Specialization Niches

8Industry Discussions

9Reference Sources:

1Overall Information of the Ecosystem Descriptions

1.1Aim of the Smart Specialization Strategy

Smart Specialization Strategy is aimed at the transformation of the national economy in order to build economic knowledge capacity by investing in research, innovation and events for their promotion. For building of economic knowledge capacity and efficient use of innovations, other conditions are also of importance. Other national development strategies and measures related to the Smart Specialization Strategy are prescribed for their implementation.

1.2Smart Specialization Strategy

To focus limited resources for ensuring an increase in innovation capacity in the areas of knowledge, where the economy has the highest growth potential. Latvian Smart Specialization Strategy is a strategy for the transformation of the economy. It provides for building of the economic knowledge capacity, which leads to higher and sustainable productivity.

1.3Definition of the Field of Ecosystem

Knowledge-based bio-economics is ensuring of innovation performance and competitiveness of the sectors of bio-economics (agriculture, food production, forest industry and fisheries) at regional and international level, as well as ensuring Latvia’s contribution to achieving the EU’s common goals. Innovation in the fields of bio-economics is not only research and creation of new products and services, but also increasing the quality of existing products and services and improving the production efficiency.

Knowledge-based bio-economics combine traditional Latvian economic sectors, the total contribution of which to the Latvian economy is 55% of the value of goods produced.In addition, agricultural and food product exports in 2013 was 3.9 billion euro, or nearly 39% of total exports, whilein 2013, the total value of Latvian forest industry exports reached 1.875 billion euro, or nearly 19%.[1]

There is a sectoral regulatory framework in the fields of agriculture, food production, fisheries and forestry stemming from the national laws and regulations. For example, the Law on the Supervision of the Handling of Food, Law on Forests, Veterinary Medicine Law[2]. Business limitations exist within the framework of laws and regulations of the Republic of Latvia. In addition to national laws and regulations, there are voluntary commitments undertaken by enterprises that certify the quality of products or services provided. For example, there is a forest certification system in the forest industry (EFSC, PEFC etc.). Sectoral regulatory framework, as well as the voluntary commitments do not put any additional development constraints on the enterprises. When asked about obstacles that affect the development of products and services in the domestic market, enterprises mention the insufficient national regulatory framework that would highlight the benefits of local products or services (CO2 emissions created during the production of the product, history of the enterprise as a taxpayer, insufficient national regulatory framework, which allows offering low-quality goods and services in public procurements).

The smart specialization area includes all representatives of the industry, science and education, who create knowledge within the scope of the smart specialization area, to whom this knowledge is crucial for their ability to earn, as well as those who provide education based on this knowledge. Ecosystem is formed by the participants of the area, their relationships and transactions among them.

In this context, knowledge can be encoded, i.e. in the form of documents, it may be included in the technology or it may be uncoded, tacit knowledge, transferred in direct contact and through a discussion between the knowledge carriers or consumers.

Conditions directly influencing the participant – the market, financing, scale of the field of knowledge, the state aid instruments and the regulatory framework – are also addressed in the context of the ecosystem.

1.4Methodology

Considering that the ecosystem is very extensive, only the part of the ecosystem, which is directly linked to knowledge and can be influenced via public intervention through research, development, innovation investment or support, is viewed and analysed in the context of smart specialization.

2Description of the Key Participants of the Area

2.1Key Participants

Former cooperation between scientific institutions and enterprises has developed through implementation of applied, enterprise-funded research, as well as through cooperation with enterprises within the competence centres. A striking example of successful cooperation is the activities of the Forest Sector Competence Centre.

Mutual relations of the key participants of the ecosystem area shown in Table 1. The table describes the potential specialization niches of the industry in the fields of activities of bio-economics, indicating the enterprises, who have established close research collaboration with scientific institutions and have a relation with institutions of higher education.

Table 1

Key participants of the ecosystem, their mutual relations

No. / Potential specialization niches of the industry in the view of discussions of 2014 / Scope of activities / The criterion of involvement
Business / Research / Higher education
1. / Sustainable and productive forest cultivation in changing climate conditions (more efficient forest management and wood resource calculation technologies) / Forest industry
forestry / LatvijasValstsMeži AS;
Latvijasfinieris AS;
Metrum SIA;
Fest Forest SIA;
Pata AB SIA;
WMF Latvia SIA;
BillerudkorsnasLatvija SIA;
Metsa ForestLatvia SIA;
BSW Latvia;
Talme SIA;
KRONSOPAN Riga SIA;
Bervig Skog SIA;
Rīgasmeži SIA;
Latvian Forest Owners’ Association;
Latvian Forest Industries Federation / LUA;
Latvian State Forest Research Institute “Silava”; / LUA
2. / Innovative high-value-added niche wood product manufacturing / Forest industry, woodworking / Latvijasfinieris AS
Kureks SIA
Marko KEA SIA
Amberwood SIA
IKTK SIA
4 PLUS SIA
Jaunzeltiņi SIA
Ošukalns SIA
Latvāņi SIA
Dores SIA
Latvian Forest Industries Federation / LUA;
MeKA SIA / LUA;
RTU
3. / Making full use of wood biomass for chemical processing and energy / Forest industry
Chemical processing of wood / Fortum Jelgava SIA
FIDE SIA
L.E.V. SIA
Latvijasfinieris AS
Tenachem SIA (Tenax group)
Baltiks East SIA
Mushrooms Latvija SIA
VLT SIA
FILLE 2000 SIA
IMOS SIA
Dores SIA
EKJU SIA
Latvian Forest Industries Federation
Adamantan SIA
Airbus DS GmbH
Alfa Construction SIA
Alnada SIA
Arch Timber Protection Ltd.
Arčers SIA
Baibiņa SIA
Baltic Block SIA
BALTIC FOREST SIA
Bārbeleskokogle SIA
BYKO-LAT SIA
DABBA SIA
Eco-Project SIA
Ekodoma SIA
Energoparks SIA
Essedea GmbH & Co
FOREVERS SIA
Green Industry Innovation Center SIA
Inspecta Latvia AS
Jauda - koks AS
JaunRīga ECO SIA
JSC Lignineko
Koppers Latvia SIA
LAMEKO IMPEX SIA
LAT HORSE SPAN SIA
Lat pro SIA
Latvāņi SIA
Latvijasfinieris AS
LKP Solutions SIA
Malkasražotne SIA
Nova Pangaea Technologies Limited
Osmose Denmark AS
Pata AB SIA
PHARMIDEA SIA
Pillar 3 SIA
PolyLabs SIA
PRO DEV SIA
PromEnergoKomplekt OOO
ProtimSolignum Ltd Koppers Performance Chemicals
RAITUMA KRĀSAS SIA
Sadalestīkls AS
SKULTES KOKOSTA SIA
SveaskogBaltfor SIA
V.L.T. SIA
VENTARS SIA
VPV SIA
WT Terminal SIA
ZB2 SIA / Latvian State Institute of Wood Chemistry;
Meka SIA;
LUA / LUA, UL
4. / Innovative, risk-reducing plant and animal breeding techniques / Agricultural sector
Veterinary medicine / EKO TERRA SIA;
Proof Advisory Group SIA; LPKS Agrario;
Verners un draugi SIA;
Biohumuss 2010 SIA;
ECO RABBIT SIA;
Alfa Agro SIA
Straume AS
Cooperative societies LATRAPS, AGRARIO, DobelesDzirnavnieks, TukumaStraume AS, LRS Mūsa SIA, Ekotri SIA, Gaha SIA, AlojaStarkelsen SIA,
BASF AGRO Latvija, Latvijasšķirnessēklas SIA, BAYER Latvija, Baltic Agro SIA
Bioefekts
HumīnVit SIA
Verners un Co SIA
Eco Organic SIA
Green OK SIA
Green-Pik LAT SIA
Farms “Akmentiņi”; “Lejasdanči”,
“Mucenieki”
“Klīves”
“Mazkuģnieki 2”, etc.
Close cooperation with the Latvian Orchardman Association
Breeders’ organizations, artificial insemination stations,
Farm animal owners in farms and LLC, Latvian Beekeepers’ Society / LUA;
LatvijasAuguaizsardzības un pētniecībascentrs SIA of LUA;
BIOR;
PūresDārzkopībaspētījumucentrs SIA;
LatgalesLauksaimniecībaszinātnescentrs SIA;
Institute of Agricultural Resources and Economics;
Institute of Horticulture (Latvia State Institute of Fruit-Growing) / LUA
5. / Development of innovative high-value-added niche products from traditional and non-traditional agricultural plant and animal raw materials / Food industry / Farm “Veckoras”;
ROGA-AGRO AS;
APB SIA;
Kurland Agro SIA
Bee Bite SIA;
Piece of Cake SIA;
Liedags SIA;
MILZU SIA;
Peitho SIA;
KEEFA SIA;
JOLLE SIA;
EM TEHNOLOĢIJA SIA;
BIOGRAPH ORGANIC SWEETS SIA;
Staburadzeskonditoreja SIA;
Latvijassēklas SIA;
Dabba SIA;
Malevs SIA;
Landrika-L SIA;
Farm “Jaundzērves”;
Perfecto SIA;
Pure Chocolate SIA;
LatEko Food SIA;
Jaunkrasts SIA;
Hemp Power SIA;
TRY SIA;
Bairons LBC SIA;
SAULEUNION SIA;
Vinnis SIA;
UDJA SIA;
Aluna Bio SIA;
SaldusGaļaskombināts SIA;
Dobelesdzirnavnieks AS;
Rīgasdzirnavnieks AS;
Balticovo AS;
Puratos Latvia SIA;
Rēzeknesgaļaskombināts SIA;
Gemoss SIA;
Rīgaspienakombināts AS;
Brīvaisvilnis AS;
Cooperative Society for Agricultural Services Latraps;
Smiltenespiens AS;
Dimdiņi SIA;
Skrīverusaldumi SIA;
Rankaspiens AS;
Lāči SIA;
Latvijasbalzams AS;
Cerrera Foods SIA;
Felici SIA;
BaltāsNaktis SIA;
Anatols SIA,
Fazer maiznīcas AS
Food Union (Rīgaspienakombināts AS and Valmieraspiens AS)
Felici SIA
Gamma AS
LatEkoFood SIA
Spilva SIA
PutnufabrikaĶekava AS
Ekotri SIA,
Companies producing goat breeding products, herb growing and preparation companies; Hemp Growers’ Association, Lienama-Alūksne SIA, Farm “Strēlnieki”
Cooperative Society for Agricultural Services “Pienaceļš” etc., Jaunpils dairy plant,
Sidrabjērs SIA
Individual merchant “Caprine”
Farm “Klīves”
Silvanols SIA (currently, Olainfarm); Aptiekasprodukcija SIA;
Latvian Orchardman Association, Nurserymen Society, horticultural companies, Latvian Beekeepers’ Society / LUA
Latvia State Institute of Fruit-Growing / LUA
6. / Technological solutions for using plant and animal breeding and processing by-products / Food industry, agricultural energetics / Smiltenespiens AS
Latvijaspiens SIA
RīgasDzirnavnieks AS
Baltic Dairy Board SIA
Ķeizarsils SIA
ZaļāMārupe SIA
Purator Latvia SIA
Cooperative Society AGRARIO,
Biomass processing companies, for example, teaching and research farm “Vecauce”,
FORTUM SIA,
Hemp Growers’ Association,
DobelesDzirnavnieks, TukumaStraume AS, LRS Mūsa SIA / LUA / LUA
7. / Food safety / Veterinary medicine / LatvijasPiens AS; PF “Ķekava”, Farm „Mežacīruļi” and other food manufacturing companies / LUA;
BIOR;
Institute of Horticulture (Latvia State Institute of Fruit-Growing) / LUA
8. / Fisheries / Fisheries / RūpniecībasMehānikas un bioloģiskāskompleksuzinātniskāspētniecībascentrs SIA
Latvenergo AS
Small Hydropower Association / BIOR;
LUA;
DU

Agreement on establishment of a strategic association for bio-economics research was concluded on 24 September 2014 to promote development of smart specialization area “Knowledge-Intensive Bio-Economics”. Fourteen scientific institutions are involved in the establishment of the association: Latvia University of Agriculture, LUA agency Research Institute of Agriculture, LUA agency Research Institute of Agricultural Machinery, LatvijasAuguaizsardzībaspētniecībascentrs SIA of LUA, Institute of Food Safety, Animal Health and Environment “BIOR”, Latvian State Forest Research Institute “Silava”, State Priekuli Plant Breeding Institute, Latvia State Institute of Fruit-Growing, State Stende Cereals Breeding Institute, Latvian State Institute of Agrarian Economics, PūresDārzkopībaspētījumucentrs SIA, LatgalesLauksaimniecībaszinātnescentrs SIA, Latvian State Institute of Wood Chemistry, Meža un koksnesproduktupētniecības un attīstībasinstitūts SIA (Meka SIA).[3]

Bio-economics Association brings together all the scientific potential related to agriculture, food production, forestry and fisheries[4]: Latvian University of Agriculture and 3 LUA scientific institutes, 7 agricultural and food research institutes, including 2 private research institutes, 3 forest sector research institutes, including one research institute jointly set up by the LUA and the industry, operate within the framework of the Bio-economics Association.

Participants of the external ecosystem related to bio-economics that have established cooperation with bio-economics scientific institutes within the framework of National Research Centre activities. Cooperation among the LUA, Latvian State Forest Research Institute “Silava”, Latvian State Institute of Wood Chemistry, UL, DU, and Latvian Institute of Aquatic Ecology has been established within the framework of the Forest and Aquatic National Research Centre (MŪRVNPC). Latvian Institute of Aquatic Ecology operates in the direction of research of the Baltic Sea formulated in the MŪRVNPC strategy, while the research direction of natural potential is represented by the Faculty of Biology of the University of Latvia, Faculty of Geography and Natural Sciences of the University of Latvia, and the Institute of Systematic Biology, Department of Anatomy and Physiology of Daugavpils University. At the same time, Latvia State Institute of Fruit-Growing, LUA, BIOR, UL, State Priekuli Plant Breeding Institute, and State Stende Cereals Breeding Institute cooperate within the framework of the National Research Centre of Food and the Use of Agricultural Resources (LRPVNPC). Close cooperation with the Faculty of Biology of the University of Latvia has been established within the framework of this centre.

Mutual cooperation

Latvia University of Agriculture and Latvian State Forest Research Institute “Silava” take part in the cooperation network of the European Forest Institute. Latvia University of Agriculture has established close cooperation in the field of education and research with the Nordic and Baltic universities within the framework of the NOVA-BOVA network. In the field of research work, close contacts have been established with Aleksandras Stulginskis University and Warsaw University of Life Sciences on the development of remote forest monitoring and forest management planning information technologies, as well as with the Belarusian University of Technology on logging technologies. LAT-LIT project in cooperation with the Šiauliai University has been implemented. Intense exchange of students and teachers is carried out within the framework of Erasmus+ and 43 European forestry university cooperation network.

Meža un koksnesproduktupētniecības un attīstībasinstitūts SIA (Meka SIA) together with the Latvia University of Agriculture has established close cooperation with the French University EcoleSupérieure du Bois (website: and exchange of researchers and students is carried out. In the field of research work, close contacts and cooperation have been established with scientific research institutions within the framework of wood modification research ( SIA is a member of the international organisation EGOLF (European Group of Organisations for Fire Testing, Inspection and Certification) – experience and competence development on European level is carried out there. Cooperation has also been established in the fire safety competencies group FSC-Fire Safe Use of Wood, where challenge monitoring and coordination of research is carried out. For Latvia, it is an opportunity to participate in the international research networks.We are the members ofInnovaWood, which is an integrated international European-wide cooperation network in the area of scientific research and training in the field of forestry and wood processing; see

Latvian State Institute of Wood Chemistry has extensive experience of activities in the European field of science, taking part in the FP6, FP7, and H2020 projects. When looking back, one should particularly mention the EU Framework Programme funding, as the funding of the centre of excellence “QLK5-CT-2002-30360 Integration of the LS of the IWC in the European Research Area” (WOODPRO, 2003–2006) was obtained in 2003, but in 2008 – project No. 203459 “The implementation of research potential of the Latvian State Institute of Wood Chemistry in the European Research Area” (WOOD-NET, 06.2008–05.2011) with the funding of ~1 million euro. Both of these projects provided a good basis for strengthening cooperation with European universities and the leading scientific institutes. Over the past 5–7 years, the following FP7 projects have been implemented with the with the Institute partnership: FORBIOPLAST; BIOCORE; EVOLUTION; BIOPURFIL, and two H2020 projects have been commenced: US4GREENCHEM and ERIFORE, and the Institute has worked on the ERA-Net projects: forestry-related activity: WoodWisdom: projects: PROLIGNIN, LILO, PINOBIO, and material science within the MATERA activity: project BBPM. The Institute is also a partner in six COST actions. The Institute also has a contract with the European Space Agency on implementation of the project CRYOFOAMS. Within the framework of implementing the above projects, cooperation has been established with many universities and institutes, the major ones of which include: VTT (Finland); INRA (France); University of Pisa (Italy), University of Göttingen (Germany); Aalborg University (Denmark); several Fraunhofer institutes, etc.[6]

In the field of agriculture, Latvia University of Agriculture is an active participant of the Nordic Association of Agricultural Scientists (NJF) and scientific organization ESA (European Society for Agronomy). The academic staff of LUA also actively participates in other international unions of scientists: European Grassland Federation – EGF, International Society for Horticultural Science (ISHS), European Association of Agricultural Economists, International Scientific Association ECOLOGICA, Nordic – Baltic Resistance Action Committee, KBBE–net – Knowledge Based Bioeconomy, International Humic Substances Society, European Weed Research Society (EWRS), International Soil Tillage Research Organization (ISTRO), British Society for Plant Pathology (BSPP), European Confederation of Soil Science Societies (ECSSS), International Union of Soil Sciences (IUSS). Personal contacts also provide opportunities for international cooperation. Of course, we also work with affiliated institutes and universities: Estonian University of Life Sciences, Aleksandras Stulginskis University in Kaunas, Lithuanian Institute Of Agriculture (Dotnuvos), Šiauliai University in Lithuania, Swedish University of Agricultural Sciences (SLU), Nicolaus Copernicus University in Poland, Lithuanian Institute of Animal Science (Baisogalos), Boreal Plant Breeding, etc. Joint projects: LAT-LIT cross-border project involving the Šiauliai University (ended); international project EUROLEGUME with 19 partners, and within the framework of the ERASMUS + programme, which involves a number of Eastern and Central European universities (including the above mentioned N. Copernicus University in Poland), the Freely Accessible Central European Soil (FACES) database will be created. A database of typical types of soil of the member states, which is compiled in accordance with international standards and in the uniform soil classification format – WRB, used in the official EU circulation of information. For use in the learning process in universities, creating joint study aids: printed, electronic, multimedia, student portal, etc. Development of a study module for learning about the international soil classification. Fields of application: universities and other institutions operating in the fields of soil science, environmental science, soil and environmental monitoring and information processing.[7]