INDUSTRIAL PARKS IN LATVIA

Abstract

In 2021, economic growth in Latvia recovered slowly after the Covid-19 crisis. At the beginning of 2022, energy and food prices increased significantly, intensifying inflationary pressure. The volume of foreign direct investments decreased, lending to companies decreased. A new approach to business promotion is needed. An industrial park is a territory set aside for economic activity, which has one manager who takes care of its infrastructure, performs construction or renovation or repair of premises according to the needs of the client and provides other services. The role of industrial parks is related to specific infrastructure and supporting legal framework. At the same time, industrial parks are one of the most widely used regional policy measures in the world, aimed at promoting investment and economic growth and reducing social exclusion. The novelty of the study is related to the review of the operation of Latvian industrial parks, which revealed that it is possible to improve the development of industrial parks by supplementing the operation of industrial parks with operational models that have not yet been implemented. The practical implementation of the models requires institutional support. Comparing the development of industrial parks in Latvia and the other Baltic countries, it was revealed that they are the least developed in Latvia, but with the highest potential. Latvian industrial parks often focus on such manufacturing and technology sectors as electronics, metalworking, mechanical engineering and ICT. These parks provide specialized infrastructure including manufacturing facilities, research and development centers and testing laboratories. Due to its strategic location as a transit hub in the Baltic region, some industrial parks in Latvia operate in logistics and transport activities. These parks provide modern warehouses, distribution centers and transport infrastructure to facilitate efficient movement of goods. Latvia has invested in renewable energy sources and sustainable technologies. Some industrial parks aim to attract companies specializing in renewable energy, including wind, solar, biomass and energyefficient technologies. Until 2026, with the support of the European Union, it is planned to implement the Public-Private Partnership (PPP), Cluster, Eco-industrial Park, Science and Technology Park (STP) industrial park models in Latvia.