High-technology industries competitiveness and regional allocation by nuts 3 regions in Latvia
2017
Auzina-Emsina, A., Riga Technical Univ. (Latvia) | Ozolina, V., Riga Technical Univ. (Latvia)
Competitiveness is the key factor in order to reach the economic transformation, smart growth, governance and legal framework for the state and society for sustainable development that are stated as the major goals in the current planning period in Latvia. High-technology industries are the main drivers of economic activity in developed economies. To ensure data comparability, the official definition of the high-technology industries by Eurostat is applied in this research including two industries: manufacture of basic pharmaceutical products and pharmaceutical preparations and manufacture of computer, electronic and optical products. The research aims to analyse high-technology industries in Latvia taking into account the competitiveness and the regional allocation using a set of several indicators. According to NUTS 3, Latvia is subdivided into 6 regions; however, the high-technology industries are regionally allocated mainly in two regions, Riga and Pieriga regions. Manufacture of basic pharmaceutical products etc. employs 99% of employees in these two regions, manufacture of computer etc. products – 81% despite the fact that only 54% of employees reside in these two regions. The research confirms that the high-technology regional allocation depends on available labour resources and also education and professional training facilities in the region. We conclude that the high-technology industries are competitive in the global market as the share of the high-tech products in total exports is several times higher than the share of these industries in the manufacturing sector or in total economy. The global competitiveness of Latvia’s high-tech industries is stable and gradually rising.
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