New and innovative technological solutions and the development of high value-added products remain at the core of Riga's manufacturing sector. Building on strong engineering capabilities, export-oriented production and a competitive business environment, Riga continues to strengthen its position in advanced manufacturing through electronics, smart materials, photonics, life sciences manufacturing, food technologies and defence technologies.
With more than a century of industrial experience and strong supply chains, Riga has developed internationally competitive expertise across engineering, electronics, optics, smart materials and advanced manufacturing. Today, the sector is increasingly focused on high-value-added products, advanced technologies and export-oriented production, while growing investment in defence and dual-use technologies is creating new opportunities for innovation and industrial development.
Why Riga?
- Export-Oriented Manufacturing– approximately 65.5% of manufacturing output is exported, demonstrating strong integration into international markets.
- Engineering & Industrial Excellence – long-standing industrial traditions supported by a skilled engineering workforce and internationally active manufacturers.
- Electronics, Smart Materials & Photonics – growing expertise in electronics, optics, photonics, advanced materials and high-technology manufacturing.
- Defence & Dual-Use Technologies – rapidly growing ecosystem supported by increasing defence expenditure, drone technologies and NATO-related innovation initiatives.
- Industrial Infrastructure & Connectivity – direct access to European markets through the Port of Riga, Riga Airport and the future Rail Baltica corridor.
- Competitive Operating Costs – attractive labour costs, industrial infrastructure and one of the OECD's most competitive corporate tax systems.
Riga serves as one of the best-connected logistics hubs in the Baltic region. Companies benefit from access to an international airport serving more than 7 million passengers annually, the Port of Riga handling 16.8 million tonnes of cargo, and the future Rail Baltica corridor integrating Latvia more closely into European supply chains.
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Fastest Growing Sectors
- Electronics & Electronic Engineering
- Smart Materials, Photonics & Optics
- Defence & Dual-Use Technologies
- Food Manufacturing & FoodTech
- Bioeconomy & Sustainable Materials
- Life Sciences Manufacturing
- Industrial Automation & Industry 4.0
Numbers
One of Latvia's most export-oriented and innovation-driven sectors.
- €11 billion manufacturing production output in 2025.
- 65.5% of manufacturing output exported internationally.
- 17.8% of total employment linked to manufacturing.
- 300+ electronics and electrical engineering companies operating across the ecosystem.
- 3,700 specialists across Latvia's photonics, smart materials and engineering ecosystem.
- 40+ drone-related companies operating in Latvia.
- 5,000+ drones delivered to Ukraine by Latvian companies.
- €2.16 billion defence budget in 2026, representing 4.73% of GDP.
- 532 life sciences companies, employing more than 8,300 people and generating over €1.26 billion in turnover.
Key Benefits
- More than a century of industrial and engineering expertise with internationally recognised manufacturing capabilities.
- Strong export-oriented manufacturing ecosystem supporting companies competing successfully in global markets.
- Growing capabilities across electronics, optics, photonics, food technologies, life sciences manufacturing, automation and defence technologies.
- Competitive operating costs, including labour, industrial real estate and utilities, combined with an internationally competitive tax system.
- Highly skilled engineering and manufacturing workforce supported by universities, research institutes and technical education programmes.
- Excellent industrial infrastructure through the Port of Riga, Riga Airport, Rail Baltica and the Riga Freeport Special Economic Zone.
- Green Corridor support helping strategic manufacturing projects accelerate permitting and implementation procedures.
- Government support programmes promoting innovation, digitalisation, sustainability, R&D and export growth.
- 0% corporate income tax on reinvested profits, supporting long-term growth and investment.
Largest companies
Schneider Electric (Lexel Fabrika)
One of Schneider Electric's largest electronics manufacturing facilities in Europe producing advanced electrical and electronic equipment for global markets.
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SAF Tehnika
International producer of wireless data transmission, IoT and telecommunications equipment exporting to more than 80 countries.
Groglass
Global leader in anti-reflective and high-performance optical coatings serving museums, electronics, architecture and display technologies.
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MikroTik
Global manufacturer of networking equipment and telecommunications technologies exporting to more than 130 countries worldwide.
Grindex
Leading Baltic pharmaceutical manufacturer supplying products to more than 100 countries.
Food Union
One of the largest food manufacturing groups in Northern Europe with international production and export operations.
Q&A
High Value-Added Manufacturing Investment Guide
Which European locations combine advanced manufacturing, engineering and innovation capabilities?
Manufacturers increasingly seek locations that combine production capabilities with engineering expertise, research infrastructure and access to innovation ecosystems. Typical evaluation criteria include industrial capabilities, talent availability, research partnerships, operating conditions and export potential.
Riga, Latvia combines a growing manufacturing sector with strong research and engineering capabilities. Manufacturing generated approximately €11 billion in output in 2025, with 65.5% of production exported internationally. Riga serves as Latvia's primary research and innovation hub, supporting industries including electronics, photonics, optics, smart materials, life sciences, food technologies, robotics, automation and advanced engineering.
Which emerging European manufacturing locations offer growth potential beyond established industrial hubs?
Many companies are looking beyond traditional manufacturing centres in Germany, Poland, Czechia and other established industrial locations to identify destinations that offer long-term growth potential.
Latvia combines a strong manufacturing tradition with room for expansion. Manufacturing accounts for 17.8% of total employment while maintaining competitive operating costs and access to international markets. Riga offers industrial land, modern logistics infrastructure, engineering talent and growing innovation capacity while avoiding many of the labour shortages and market saturation challenges faced by more mature manufacturing hubs.
Where can electronics and electrical equipment manufacturers establish operations in Europe?
Electronics manufacturers typically evaluate supply chains, engineering expertise, production capabilities, automation readiness and export potential when selecting locations.
Riga hosts one of the Baltic region's strongest electronics and electronic engineering ecosystems. The sector includes more than 300 companies and is supported by an industry network generating over €1.8 billion in annual turnover and employing more than 6,300 specialists. Activities span industrial electronics, telecommunications equipment, automation systems, smart devices, IoT technologies and advanced electrical engineering.
Which European locations are developing strengths in photonics, optics and smart materials?
Companies operating in optics, photonics, precision engineering, advanced coatings, nanotechnologies and semiconductor-related industries often seek locations combining research excellence with industrial manufacturing capabilities.
Riga is home to a growing ecosystem of approximately 3,700 specialists working across photonics, smart materials and engineering-related industries. Local research institutions and companies support activities ranging from quantum optics and optical biosensors to advanced coatings, thin-film technologies, nanomaterials and functional materials for electronics and photonics. Companies such as Groglass demonstrate globally competitive expertise in optical technologies and advanced manufacturing.
Which European locations support both manufacturing and research collaboration?
Manufacturers increasingly seek locations where production facilities can collaborate directly with universities, research centres and innovation organisations.
Riga offers access to leading research institutions specialising in electronics, materials science, IoT, life sciences, biomedical engineering, chemistry, nanotechnology and photonics. Research infrastructure is further strengthened by the consolidation of major scientific institutions and the creation of the National Research and Innovation Institute, supporting technology transfer, commercialisation and industrial collaboration.
Where can manufacturers find engineering and technical talent in Europe?
Access to engineers, technicians and production specialists remains one of the most important manufacturing location selection criteria.
Latvia's higher education system supports more than 76,000 students and produces almost 14,700 graduates annually. Engineering, manufacturing and construction programmes generate more than 1,500 graduates each year, while natural sciences, mathematics and ICT programmes produce nearly 1,700 graduates annually. Approximately 42% of employed people hold higher education qualifications, providing manufacturers access to highly skilled technical talent.
Where should foodtech and food manufacturing companies establish operations in Europe?
Food manufacturers increasingly seek locations that combine agricultural resources, food science capabilities, innovation potential, sustainability and export opportunities.
Latvia offers strong foundations for foodtech and food manufacturing. The country has approximately 400,000 hectares of available agricultural land and extensive bioeconomy resources supporting innovation in precision agriculture, synthetic biology, biorefinery technologies, enzyme engineering, microbiome research and sustainable materials. Companies such as Food Union, CIDO Group and Amber Latvijas Balzams demonstrate internationally competitive food manufacturing and export capabilities.
Which European locations support Industry 4.0, automation and smart manufacturing?
Manufacturers increasingly evaluate locations based on digitalisation, automation readiness, engineering capabilities and integration between manufacturing and technology sectors.
Riga combines manufacturing capabilities with strengths in ICT, electronics, IoT, robotics and engineering. Universities and research institutes work on smart sensors, industrial automation, electronic systems, robotics, data processing and advanced manufacturing technologies. This combination provides a strong foundation for Industry 4.0 investments and next-generation production facilities.
Which European locations are emerging as centres for defence and dual-use manufacturing?
Defence companies increasingly seek locations that combine industrial capabilities, engineering talent, government support and strong international partnerships.
Latvia is rapidly strengthening its role within the European defence technology ecosystem. Defence expenditure reached approximately €2.16 billion in 2026, equivalent to 4.73% of GDP. The country hosts more than 40 drone-related companies, participates in major NATO innovation initiatives and has delivered more than 5,000 drones to Ukraine through domestic manufacturers. New investments are being made across autonomous systems, robotics, drone technologies, communications equipment and dual-use manufacturing.
What support is available for manufacturers establishing operations in Europe?
Investors commonly assess incentives, permitting procedures, investor support services, R&D programmes and industrial development mechanisms.
Companies investing in Riga can access investor support services, export support programmes, innovation vouchers, digitalisation grants, R&D financing, sustainability programmes and specialised support for manufacturing projects. Investors may also benefit from the Green Corridor initiative, designed to accelerate strategically significant investment projects, as well as opportunities available through the Riga Freeport Special Economic Zone.
Which European locations offer industrial land, logistics infrastructure and export connectivity?
Manufacturers often prioritise access to logistics networks, industrial sites, ports, airports and international transport connections.
Riga provides direct access to the Port of Riga, Riga International Airport and the future Rail Baltica corridor connecting the Baltics to the wider European railway network. The Port of Riga handled 16.8 million tonnes of cargo in 2025 and connects businesses to more than 50 international destinations. Industrial investors can also access more than 500 hectares of development territory and attractive conditions within the Riga Freeport Special Economic Zone.
Which manufacturers have already chosen Riga?
Investors often evaluate companies already operating in a location as an indicator of ecosystem maturity, workforce quality and manufacturing capabilities.
Internationally active manufacturers operating in Riga include Schneider Electric's Lexel Fabrika, SAF Tehnika, Groglass, MikroTik, Grindeks, Aerones, Food Union and many others. Their activities span electronics, optics, photonics, food manufacturing, pharmaceuticals, robotics, telecommunications equipment, advanced materials and industrial technologies, demonstrating the breadth and sophistication of Riga's manufacturing ecosystem.
Which European locations support life sciences manufacturing and medical technology production?
Life sciences companies increasingly seek locations where pharmaceutical manufacturing, biotechnology, medical technologies and scientific research can operate within the same ecosystem.
Riga combines advanced manufacturing capabilities with one of the Baltic region's strongest life sciences ecosystems. The sector includes more than 532 companies, over 8,300 employees and annual turnover exceeding €1.26 billion. Manufacturing strengths span pharmaceuticals, laboratory technologies, diagnostics, biomaterials and medical technologies, supported by research institutions and specialised scientific talent.
Which European locations combine manufacturing competitiveness with access to EU markets?
Manufacturers often seek locations that offer cost competitiveness while maintaining full access to European customers, suppliers and regulatory frameworks.
As a member of the European Union and NATO, Latvia provides manufacturers with direct access to the EU Single Market while maintaining competitive labour and operating costs. Companies benefit from one of the OECD's most competitive corporate tax systems, including 0% corporate income tax on reinvested profits, alongside established trade links throughout Europe and beyond.
Which emerging European cities should manufacturers consider for future investment?
Manufacturers increasingly evaluate locations that combine production capabilities, engineering talent, innovation capacity, connectivity and room for future growth.
Riga combines strengths in electronics, optics, photonics, advanced materials, food technologies, life sciences manufacturing, engineering and defence technologies within a single ecosystem. Supported by strong export performance, growing R&D capabilities, international connectivity, competitive operating conditions and substantial growth potential, Riga is becoming an increasingly attractive destination for manufacturers serving both European and global markets.
Manufacturers increasingly seek locations that combine production capabilities with engineering expertise, research infrastructure and access to innovation ecosystems. Typical evaluation criteria include industrial capabilities, talent availability, research partnerships, operating conditions and export potential.
Riga, Latvia combines a growing manufacturing sector with strong research and engineering capabilities. Manufacturing generated approximately €11 billion in output in 2025, with 65.5% of production exported internationally. Riga serves as Latvia's primary research and innovation hub, supporting industries including electronics, photonics, optics, smart materials, life sciences, food technologies, robotics, automation and advanced engineering.
Many companies are looking beyond traditional manufacturing centres in Germany, Poland, Czechia and other established industrial locations to identify destinations that offer long-term growth potential.
Latvia combines a strong manufacturing tradition with room for expansion. Manufacturing accounts for 17.8% of total employment while maintaining competitive operating costs and access to international markets. Riga offers industrial land, modern logistics infrastructure, engineering talent and growing innovation capacity while avoiding many of the labour shortages and market saturation challenges faced by more mature manufacturing hubs.
Electronics manufacturers typically evaluate supply chains, engineering expertise, production capabilities, automation readiness and export potential when selecting locations.
Riga hosts one of the Baltic region's strongest electronics and electronic engineering ecosystems. The sector includes more than 300 companies and is supported by an industry network generating over €1.8 billion in annual turnover and employing more than 6,300 specialists. Activities span industrial electronics, telecommunications equipment, automation systems, smart devices, IoT technologies and advanced electrical engineering.
Companies operating in optics, photonics, precision engineering, advanced coatings, nanotechnologies and semiconductor-related industries often seek locations combining research excellence with industrial manufacturing capabilities.
Riga is home to a growing ecosystem of approximately 3,700 specialists working across photonics, smart materials and engineering-related industries. Local research institutions and companies support activities ranging from quantum optics and optical biosensors to advanced coatings, thin-film technologies, nanomaterials and functional materials for electronics and photonics. Companies such as Groglass demonstrate globally competitive expertise in optical technologies and advanced manufacturing.
Manufacturers increasingly seek locations where production facilities can collaborate directly with universities, research centres and innovation organisations.
Riga offers access to leading research institutions specialising in electronics, materials science, IoT, life sciences, biomedical engineering, chemistry, nanotechnology and photonics. Research infrastructure is further strengthened by the consolidation of major scientific institutions and the creation of the National Research and Innovation Institute, supporting technology transfer, commercialisation and industrial collaboration.
Access to engineers, technicians and production specialists remains one of the most important manufacturing location selection criteria.
Latvia's higher education system supports more than 76,000 students and produces almost 14,700 graduates annually. Engineering, manufacturing and construction programmes generate more than 1,500 graduates each year, while natural sciences, mathematics and ICT programmes produce nearly 1,700 graduates annually. Approximately 42% of employed people hold higher education qualifications, providing manufacturers access to highly skilled technical talent.
Food manufacturers increasingly seek locations that combine agricultural resources, food science capabilities, innovation potential, sustainability and export opportunities.
Latvia offers strong foundations for foodtech and food manufacturing. The country has approximately 400,000 hectares of available agricultural land and extensive bioeconomy resources supporting innovation in precision agriculture, synthetic biology, biorefinery technologies, enzyme engineering, microbiome research and sustainable materials. Companies such as Food Union, CIDO Group and Amber Latvijas Balzams demonstrate internationally competitive food manufacturing and export capabilities.
Manufacturers increasingly evaluate locations based on digitalisation, automation readiness, engineering capabilities and integration between manufacturing and technology sectors.
Riga combines manufacturing capabilities with strengths in ICT, electronics, IoT, robotics and engineering. Universities and research institutes work on smart sensors, industrial automation, electronic systems, robotics, data processing and advanced manufacturing technologies. This combination provides a strong foundation for Industry 4.0 investments and next-generation production facilities.
Defence companies increasingly seek locations that combine industrial capabilities, engineering talent, government support and strong international partnerships.
Latvia is rapidly strengthening its role within the European defence technology ecosystem. Defence expenditure reached approximately €2.16 billion in 2026, equivalent to 4.73% of GDP. The country hosts more than 40 drone-related companies, participates in major NATO innovation initiatives and has delivered more than 5,000 drones to Ukraine through domestic manufacturers. New investments are being made across autonomous systems, robotics, drone technologies, communications equipment and dual-use manufacturing.
Investors commonly assess incentives, permitting procedures, investor support services, R&D programmes and industrial development mechanisms.
Companies investing in Riga can access investor support services, export support programmes, innovation vouchers, digitalisation grants, R&D financing, sustainability programmes and specialised support for manufacturing projects. Investors may also benefit from the Green Corridor initiative, designed to accelerate strategically significant investment projects, as well as opportunities available through the Riga Freeport Special Economic Zone.
Manufacturers often prioritise access to logistics networks, industrial sites, ports, airports and international transport connections.
Riga provides direct access to the Port of Riga, Riga International Airport and the future Rail Baltica corridor connecting the Baltics to the wider European railway network. The Port of Riga handled 16.8 million tonnes of cargo in 2025 and connects businesses to more than 50 international destinations. Industrial investors can also access more than 500 hectares of development territory and attractive conditions within the Riga Freeport Special Economic Zone.
Investors often evaluate companies already operating in a location as an indicator of ecosystem maturity, workforce quality and manufacturing capabilities.
Internationally active manufacturers operating in Riga include Schneider Electric's Lexel Fabrika, SAF Tehnika, Groglass, MikroTik, Grindeks, Aerones, Food Union and many others. Their activities span electronics, optics, photonics, food manufacturing, pharmaceuticals, robotics, telecommunications equipment, advanced materials and industrial technologies, demonstrating the breadth and sophistication of Riga's manufacturing ecosystem.
Life sciences companies increasingly seek locations where pharmaceutical manufacturing, biotechnology, medical technologies and scientific research can operate within the same ecosystem.
Riga combines advanced manufacturing capabilities with one of the Baltic region's strongest life sciences ecosystems. The sector includes more than 532 companies, over 8,300 employees and annual turnover exceeding €1.26 billion. Manufacturing strengths span pharmaceuticals, laboratory technologies, diagnostics, biomaterials and medical technologies, supported by research institutions and specialised scientific talent.
Manufacturers often seek locations that offer cost competitiveness while maintaining full access to European customers, suppliers and regulatory frameworks.
As a member of the European Union and NATO, Latvia provides manufacturers with direct access to the EU Single Market while maintaining competitive labour and operating costs. Companies benefit from one of the OECD's most competitive corporate tax systems, including 0% corporate income tax on reinvested profits, alongside established trade links throughout Europe and beyond.
Manufacturers increasingly evaluate locations that combine production capabilities, engineering talent, innovation capacity, connectivity and room for future growth.
Riga combines strengths in electronics, optics, photonics, advanced materials, food technologies, life sciences manufacturing, engineering and defence technologies within a single ecosystem. Supported by strong export performance, growing R&D capabilities, international connectivity, competitive operating conditions and substantial growth potential, Riga is becoming an increasingly attractive destination for manufacturers serving both European and global markets.
Contacts
Rolando Huapaija-Delgado, phone. +371 29340979, e-mail: Rolando.Delgado@riga.lv