Regional centre development management factors: case study of Liepaja [Latvia]
2021
Ozols, A., Riga Technical Univ. (Latvia) | Avotins, V., Riga Photonics Centre (Latvia)
The number of special economic zones (SEZs) and industrial parks worldwide is constantly increasing, and the Industry 4.0 demands extremely high agility level and more effective approaches to maintain competitiveness of SEZ. The paper deals with questions related to the strategic management of SEZ as the regional development promoter. It evaluates the main factors affecting SEZ’s economic development, analyses the opportunities for specialization areas in the context of global challenges, considers the potential for growth of talent pool in Liepaja, with a special emphasis on the importance of education. The study has been conducted using desk research, analysis of global trends and good practices, and expert interviews. It concludes that new industrial parks are characterized by academic and technological development, close cooperation between academic, business, and public administration, where the university no longer fulfils only a simple educational function but is an active source of change, innovation driver and tester, and a magnet for creating and attracting talents. In the face of today’s challenges, formal model of SEZ gives just a new formal status without tangible added value. Key factors affecting SEZ activities are the management of SEZ with clearly defined priorities, political will and initiative, the availability of a talented highly skilled and motivated workforce, meaningful use of fiscal incentives and cooperation with the university. The economic situation of Liepaja is characterized by low wages, low innovation capacity and technology absorption capacity, low productivity, and low-skilled labour. The SEZ should be able to adapt the strategy to changing global trade patterns: strategic reorientation, mobilizing dynamic businesses, moving towards technological growth, attracting talents, developing well-defined high value-added priority sectors.
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