High value–added manufacturing

New and innovative technological solutions and developing high-value-added products and services are both our priorities and strengths.

With more than 100 years of experience in delivering state-of-the-art solutions for the industry and excellent supply chains for electronics, optics, and lens manufacturing, It is possible to find an enormous potential for the science, engineering, and industry of smart materials. The manufacturing industry in Latvia is now focusing on the development of high-value products, such as smart materials and photonics, green technology, and electronics.

Why Riga?

Excellent geographical location and the best connectivity in the Baltics
Focus on high added value products
An inclusive society and a high level of digitalization
A cost-competitive business environment
Support mechanisms and special economic zone

Riga offers superior connectivity by being a convenient logistics hub connected with rest of Europe by rail, air and sea. Riga has a large port that is located in the special economic zone area, the Riga central train station will soon be the largest in the Baltics, and already has the largest international airport in the Baltic region.

Files for download

High-value added manufacturing sector in Riga 2025

Life-science industry in Riga 2025

The Economic Profile of Riga 2025

Latvia is an EU country that boasts diversity, digital advancement, and cost-effectiveness. It is noteworthy for having the highest proportion of women in management positions among EU countries, as well as being ranked 19th globally in terms of ease of doing business. Additionally, Latvia ranks 4th among EU nations in terms of e-government services.
Companies in Latvia can benefit from a variety of government incentives and support mechanisms to foster innovation, growth, R&D and export capacity. Furthermore, the Riga port special economic zone offers specific advantages, such as tax reliefs and co-financing. Foreign investors have all the same rights and opportunities as the local businesses.
Latvia, compared to other EU countries, stands out with cost competetiveness in labour costs, favorable tax rates, and lower real estate and utilities’ costs make it an attractive destination for companies to establish their operations in.

Fastest growing sectors

Electronics and electrical engineering
Smart materials and photonics
Defence industry
Life sciences and chemical production

Reflecting a strategic commitment to security, Latvia aims to increase its defence spending to 5% of GDP — nearly doubling from current levels (~€1.4 billion).This investment underpins the country’s ambition to build a resilient, innovation-oriented defence sector with strong ties to NATO, EU partners, and Ukraine.

Largest companies

Numbers

Manufacturing accounts for 34.7% of GDP turnover and 11.1% of value added, with 65.3% of output exported.
Smart materials and photonics industry - 3632
Employement in smart materials and photonics - 37 000
Electronics and electrical engineering - 300 companies
Defence budget in the coming years - 2 billion EUR
40+ drone-related firms; 5,000+ drones delivered to Ukraine.
Latvia aims to increase its defence spending to 5% of GDP
Chemical and pharmaceutical industry - 300 companies
The number of employees in chemical and pharmaceutical companies - 8500
Turnover in life-science industry - 1.3 billion EUR (2023)

Key Benefits

Over a century of industrial expertise with strong roots in manufacturing and engineering
Rapidly growing life sciences sector, driven by strong R&D, biotechnology, and pharmaceutical manufacturing expertise.
Strategic gateway to the EU, offering lower labour, real estate, and utility costs with favourable tax policies.
The Freeport of Riga offers tax and customs incentives, while Riga Airport — the largest in the Baltics — ensures excellent global connectivity.
Highly skilled, multilingual workforce and strong logistics links enabling efficient export of goods and services across Europe and beyond
Top-ranked for tax competitiveness, placing 1st in the OECD for the Corporate Tax Index and 2nd overall in the International Tax Competitiveness Index.
0% corporate income tax on reinvested profits, encouraging business growth and long-term investment.
41st place in the World Innovation Index
1st place among OECD countries in the proportion of women in science, technology and innovation
Growing defence and dual-use industry, backed by strong engineering capabilities and increasing international collaboration.
The MATERIZE platform is a centralized solution for connecting the business environment and science
Green Channel support

Useful links:

The Association of the Latvian Chemical and Pharmaceutical Industry
MATERIZE platform for industry collaboration and innovation for making scientific expertise beneficial to business
Latvian Electrical Engineering and Electronics Industry Association
Investment options in the Riga Freeport

Contacts

Rolando Huapaija-Delgado, phone. +371 29340979, e-mail: Rolando.Delgado@riga.lv