Innovation, Agricultural Productivity and Sustainability in Latvia

Foreword
Acronyms and useful links
Executive summary
	Note
Chapter 1.  Overall assessment and recommendations
	1.1. A framework to analyse policies for innovation, productivity and sustainability in the food and agriculture sector
	1.2. Main challenges and opportunities for the Latvian food and agriculture sector
		Latvia is a dynamic, small and open economy, but with a declining population and skills shortage
		This general context has a strong impact on food and agriculture
		Agriculture uses the abundant land and water resources sustainably
		Productivity improvements have led to strong agricultural production growth
		Further structural adjustment would increase economic performance
		More attention should be paid to the food chain
		…..and to prepare the sector for future challenges
	1.3. Framework conditions for investment
		Governance has improved with reforms in the public administration
		Further improvements in the regulatory environment would facilitate investments in food and agriculture
		The Latvian economy is open to trade and investment
		Access to credit has improved
		The tax system is being reformed
	1.4. Improving capacities and services
		Infrastructure networks have improved, but more needs to be done in rural areas to connect people and markets
		Shortages in labour and skills are a serious impediment to innovation take up and rural development
		Improving data and analysis for decision making
	1.5. Agricultural policies
		Recommendations
	1.6. Agricultural innovation systems
		Recommendations
	Notes
Chapter 2.  Overview of the food and agriculture situation in Latvia
	2.1. General geographic and economic context
	2.2. The role of agriculture in the Latvian economy
		Land use changes
		Farm income and wealth
		The food processing and retail
	2.3. Agricultural output and trade
		Output
		Trade
	2.4. Trends in productivity
		Crop yields
		Milk yield
		Food processing
	2.5. Trends in natural resource use and the state of the environment
		Agri-environmental performance
		Inputs
		Water quality and quantity, water use evolution through time, infrastructures
		Biodiversity evolution
		Ammonia, Nitrogen oxides and Greenhouse Gas Emissions
			Ammonia emissions
			Greenhouse Gas emissions
		Climate change: Climate conditions
	2.6. Summary
	Notes
	References
Chapter 3.  Economic stability and quality of institutions in Latvia
	3.1. Overall economic performance and medium-term growth prospects
		Government measures for promoting economic growth and jobs
		Main components of global competitiveness
	3.2. Governance and quality of public institutions
		Regulatory process, transparency, clarity and predictability of governance and institutions
		Environmental and natural resources concerns in institutions and the decision making process
		Mechanisms for ensuring policy coherence and transparency
	3.3. Summary
	Notes
	References
		Annex 3.A. Institutional Background
Chapter 4.  General incentives for investment in Latvia
	4.1. Regulatory environment
		Regulatory environment for entrepreneurship
		Regulations on natural resources
			General regulations governing access to and use of natural resources and the environment
			Liability
			Waste management
			Biodiversity and Protected areas
			Land use and soil
			Water
			Nitrates
			Climate change
		Regulations on products and processes
			Food safety law
			Organic practices and products
			Assessment of regulatory impacts when developing new and reviewing existing regulations
			Implementation of product and process safety regulation in food and agriculture
	4.2. Trade and investment policy
		Trade policy
		Trade openness
		Efficiency and effectiveness of customs and border procedures
		Foreign Direct Investment (FDI) regulations
	4.3. Finance policy
		Financial market development
		Agricultural crediting
			SME growth loans and microloans for farmers
			Credit guarantees for rural entrepreneurs
			State loans for the purchase of agricultural land
			The Land Fund of Latvia
	4.4. Tax policy
		Overview of the Latvian tax system
		Taxes on corporate and personal income
			Tax provisions for farms or agriculture-related businesses
		Labour taxes
		Real estate tax
		Vehicle taxes
		Consumption taxes
		Environmental taxation
		Tax impact on investment
			Tax incentives for private investment in R&D
	4.5. Summary
	Notes
	References
		Annex 4.A. Background table
Chapter 5.  Capacity building and public services in Latvia
	5.1. Infrastructure and rural development policy
		Quality of the physical infrastructure
			Infrastructure development priorities in the context of regional development
			Funding of infrastructure development
		Public services in rural areas
	5.2. Labour market policy
		Labour market legislation
		Labour market efficiency
		Specific provisions for farm operators and workers
		Workforce emigration and immigration
		State policy in creating new workplaces, re-qualification of workforce
	5.3. Education and skills policy
		The education system
			Governance and funding
		Overall performance
			Educational attainment
			Changes in student demography
		Agricultural education
			Availability of agriculture-related education programmes
			Agriculture enrolment trends
			Meeting labour market needs in the agricultural sector
			Lifelong learning in the agricultural sector
			Latvian Rural Advisory and Training Centre
	5.4. Summary
	Notes
	References
Chapter 6.  Agricultural policy framework
	6.1. Overview
	6.2. Broad-based domestic measures
	6.3. Support to specific sectors
	6.4. Measures targeting specific issues
	6.5. Summary
	Notes
	References
Chapter 7.  Latvian Agricultural Innovation System
	7.1. General innovation profile
		General innovation framework
		General innovation performance
		Communicating science
	7.2. Actors, institutions and governance of agricultural innovation systems
		Government
		Research, education and knowledge
		Private sector
	7.3. Public and private investments in agricultural R&D
		Priorities for agricultural research and development
		Research funding instruments
		Trends in public expenditures on R&D
		Support to knowledge infrastructure
		Trends in private expenditures on R&D
		Public incentives to private investment in agricultural R&D
		Role of public procurement and other “pull mechanisms” in research funding
	7.4. Creating knowledge markets
		Disseminating research results
		Protection of Intellectual Property
		Patents
		Plant breeding
		Animal breeding
		Food science
	7.5. Co-operation between public and private actors
		The adoption of innovations
		R&D outcomes
	7.6. International co-operation in agricultural R&D
	7.7. Summary
	Notes
	References
		Annex 7.A. Background table