Within the framework of the European Union (EU) cohesion policy, Latvia has been receiving substantial financing from EU funds in the recent years and will continue receiving it to increase the economic production potential.
In the programming period of 2007–2013, 4.53 billion EUR were allocated to Latvia for the implementation of Cohesion Policy objectives through EU funds (ERDF — European Regional Development Fund, ESF — European Social Fund, and CF — Cohesion Fund). The EU funds of the programming period of 2007–2013 can be absorbed until 2015 (including).
The largest part of financing in the ERDF action programme “Entrepreneurship and innovations” amounting to 58.8 % was allocated to the priority “Science and innovations”, 28.2 % of the total action programme financing were allocated to access to funding, whereas 10 % to promoting entrepreneurship. The substantial resources allocated to science and innovations are related to the large-scale projects in such programmes as competence centre development and technology transfer.
Investments of JSC Olainfarm, which are co-funded from EU funds, have created a significant stimulus to economic activity, and it is expected that the positive effect will also continue in the upcoming years. JSC Olainfarm is actively using the opportunities offered by the EU funds, as their return greatly depends on the combination of investment types, for example, return on investments in human capital is higher, if simultaneous infrastructural development investments have been done.
JSC Olainfarm realises that, in order to create and maintain a modern knowledge economy, relevant human capital is of the essence. Therefore, the company is actively employing the opportunities of creating new knowledge for employees in order to facilitate targeted focus of research and innovation resources in knowledge areas. JSC Olainfarm bases its operations on set development priorities, which are reviewed regularly, on focused investments, incl. selection of action policy instruments relevant for strategic goals, and a development of a monitoring system, aimed at consolidating competitiveness at regional, European and global level. This is why the company has put forth the following key directions of action and instruments:
- to improve the environment of economic operations;
- to ensure the establishment of a stable and sustainable industrial base;
- to invest in education and training for skills acquisition;
- to strengthen research, technology development and innovation.
In the programming period of 2014–2020, Latvia will have access to investments from five EU structural policy financing instruments. JSC Olainfarm plans to continue taking advantage of the EU support and will continue investing in research, innovations, and technologies.