Latvia is a territorially small country with small open economy, and its main and the most competitive recourses are highly educated society and well developed science which is based on research, innovation and modern technologies. To create a well functioning innovation system as a part of knowledge-based economy, several conditions has to be met to insure that all parts of national innovation system effectively work together. This article is dedicated to analysis of financing mechanisms that can be used by research institutes in the field of agriculture in Latvia to ensure sustainable rural development. The research in the field of agriculture in Latvia is mainly performed by the state research institutes and research agencies of Latvia University of Agriculture. To provide favourable environment for development of research and science, there is set legislation framework and financing mechanisms such as base financing from the state budget, state research programmes, European Commission Framework Programmes, and the European Union (EU) Structural Funds assistance. The analysis has shown that support of EU Structural funds has positive impact on number of applied research carried out in research institutes in the field of agriculture in Latvia. EU Structural funds assistance helps to develop fundamental research activities and innovative approach to the science that is one of the preconditions for the development of states' competitiveness. In conclusion, the authors resume that it is necessary to establish a strong link between higher education institutions, research institutes, and entrepreneurs in the process of building effectively working national innovation system.

Innovation capacity has to be viewed as a consequence of properly operating innovation system. Well established and functioning innovation system is a result of enhanced by government innovation policy. In comparison with other European Union (EU 27) countries, innovation capacity indicators in Latvia remain low and considerably underperform, reflected in the 'European Innovation Scoreboard 2008', where Latvia took the 30th place among 32 countries. Problems and solutions are illustrated to represent innovation capacity in Latvia. This article consists of the following parts: first - theoretical aspects are selected to describe the essential definition of the analyzed subject. In the second part, experience from abroad is described, at the end – Latvian innovation policy and situation is analyzed and suggestions for further needs are formulated. The main results of analysis show that only a few elements of innovation capacity building are functioning at Latvian enterprises, whose aim is to build a base for the innovation capacity of the country.

The production of innovative composition (high omega group fatty acids and antioxidants-carotenoids) broiler chicken meat and egg opportunities in Latvia was assessed. After feeding the poultry with feed enriched with fatty acids and antioxidants, broiler meat and eggs of innovative composition containing a higher amount of omega-3 (in meat by 1.7%, in eggs by 2.7%), omega-6 (in meat by 3.9%, in eggs by 3.2%) and carotenoids (0.44 mg kg-1 in meat and in eggs by 6.9 mg kg-1) when compared with the content of commercial products are obtained. Nutrition costs of innovative composition-based broiler chicken meat production are LVL 20 higher and nutrition costs of egg production are LVL 1.49 higher per 1000 units of output than in the standard version of the poultry feeding-stuff. The poultry farming production of an innovative composition, however, is economically profitable due to the higher rates of poultry productivity. In the case of an innovative composition-based yield the potential profit at the currently equal cost realisation of poultry meat and eggs is higher when calculating 293.47 LVL per 1000 broiler chickens and 5.52 LVL per 1000 eggs in comparison with commercial production.

Challenges for modern society encourage the interest of how the regions could increase opportunities to accelerate social and economic development and reach the level of developed regions. Especially it is important for rural areas. There is a search for new answers (ideas and innovations) on creating a competitive advantage of regions. Seeking for a better systematic (not chaotic) result of innovative activities various organizations (even working in different sectors) are tied up with other organisations by tight links in their regional innovation system. The collaboration among different organizations is argued to be the main axis for the stimulation of innovativeness. Besides, all innovative activities must be reinforced by organizations’ absorptive capacity (i.e. abilities to access external knowledge, anchor and diffuse it) that leads to innovativeness. This article argues the theoretical and empirical approach of how the regional development could be accelerated by empowered innovativeness as a capacity of participants of a regional innovation system. Lithuania as a modern country and the EU member declares the importance of the reduction of internal regional disparities. Consequently, the analysis of a particular regional innovation system, i.e. Šiauliai region, allows disclosing the regional peculiarities and weaknesses of its innovative activities limiting the development process. The goal of this article is to reveal the current situation of innovativeness in Šiauliai region and draw the directions of its empowerment for further regional development. The article consists of two parts: theoretical insights and explanation of methodological approach; and the presentation and discussion of quantitative research results.

Smart specialisation strategy (RIS3) is topical for each European Union member state – including the Baltic States. It is a smart tool for the European Union (EU) Structural Funds absorption from 2014 to 2020. Each EU member state has set their own priorities based on the country specialisation and economy strengths and weaknesses. For RIS3 development evaluation, there is RIS3 Assessment Wheel developed – a tool for assessing the RIS3 in a chosen region and positioning it between other regions. The aim of research is to find main differences between RIS3 development in the Baltic States. The tasks of research are 1) to compare existing RIS3 Assessment Wheel of Latvia and create authors version of RIS3 Assessment Wheel of Latvia; 2) to create RIS3 Assessment Wheel of Lithuania and Estonia; 3) to make comparisons between created RIS3 Assessment Wheels. The research performed is mainly based on the desk research by using content analysis and the monographic method. In all three Baltic States, there is a lack of information available about revision of priorities in connection with RIS3 development. In order to achieve the aims set in RIS3, it is essential to finish work on RIS3 legislation in Latvia, and introduce the systematic approach to RIS3 target evaluation in all Baltic States.

In today‘s context of social sciences and practical discussions teamwork, synergy and synergy effects are considered to be one of the most important research objects. Creativity leads any organizational structure to successful solution of a problem and promotes the achievement of not individual but synergy goals, which are the result of generated and practically applied social innovations. The potential of teamwork synergy is transmitted through team dynamics, team creative process, as well as team purpose. The aim of this research is to identify the indicators describing the potential of synergy regarding team creative process and to evaluate their importance in the team creative process while developing innovative solutions. A case analysis method is applied: two different teams, which performed creative tasks, were chosen and analysed. In order to estimate the potential of synergy of creativity, a set of quantitative and qualitative indicators was formed. Features describing each indicator were evaluated by using questionnaires filled by the teams participating in the research. In addition, the teams were observed, in order to estimate the team creative process. The results of the research are valuable for authorities of organizations, who aim at greater synergy results and social innovations encouraging the development of public, social and business interests and creating multiplying effects of ideas. The generalized findings of the research are presented in the article, as well as the applied methods of scientific literature analysis and synthesis, abstraction.

The concepts of bioeconomy development require the integration of different sectors and economic activities. Bioeconomy helps to achieve the goals of sustainable development. This paper provides an overview of the cooperation for the need of bioeconomy development, examining it from agricultural cooperatives development, theoretical concept and European countries policy and Kazakhstan perspective. The research methods are induction and deduction, monographic, the group interview, statistical data analysis and synthesis, descriptive, matching and comparison and other methods. The cooperation passes through several levels of development – information, consultation, joint action, collective decision-making. The cooperation within farmers (horizontal cooperation) is so far narrow and limited to traditional cooperatives that bring together producers of the same product. New forms of cooperation and more diverse directions in national, regional and local levels are needed to develop the bioeconomy. Partnerships, the interdepartmental and interdisciplinary cooperation based on knowledge and innovation should be established between farmers, agri-food companies and scientific institutions, Kazakhstan and other countries universities. The agricultural and rural development advisory system should be improved, and new measures to promote communication, counselling and cooperation should be introduced.

The changing economic and social situation in the regions leads to the changing understanding of the potential which exists in the countryside. This research is based on the idea that farmers operate in close neighbourhood with the local communities and therefore they may hold a potential to start innovation processes in rural regions as agents of change. This may happen individually or together with the local community. Farmers are active in acquiring new knowledge and experience through collaboration with advanced innovation centres in research laboratories and universities, and sharing with the local community, thus making these innovations open. The success of innovators comes in line with the collaboration and therefore the defined three key factors of ‘innovating together’ in this research are: first, the shift from technical to organizational innovations; second, the shift from sectorial to territorial rural development strategies; third, the size of farms and rural enterprises due to the limited number of employees. Theoretical findings are followed by empirical investigations from representative data collected in Lithuanian farms in 2017, supported with relevant statistical analysis. Research results show that the potential for ‘innovating together’ in Lithuanian farms is rather weak when taking into account all three factors. However, there are reasons behind this which give insights for future developments in the field.

Social innovations are recognized as one of the most promising innovations in solving social problems in rural areas. When assessing the creation of social innovation, it should be noted that not only the goal and the result but also the whole process of creation of social innovation is important. The analysis of theoretical and practical research has revealed that traditional methods of solving problems in rural areas are not working, which consequently leads to search for innovative solutions. The most obvious social problems in rural areas, such as an aging society, youth departure, lack of breakthrough and innovative ideas, etc. can be noticed when assessing factors of social environment. At this stage, the solutions sought through the prism of social innovation can become those that will ensure the wellbeing of the rural area and support people living there. Social innovation is widely spread at the level of the European Union; however, in Lithuania, social innovation is taking just the first steps. The article analyses the case of Sėlynė village in Rokiškis region, during which social innovation that succeeded to unite rural community has been created. The article aims to analyse the process of creation of social innovation in rural areas from the theoretical point of view and to present the case of Sėlynė village of Rokiškis region. The main problem is the complex understanding of the creation process of social innovation.

In educational strategy papers, it is determined that entrepreneurial development should be implemented already in schools. Various methods and approaches can be used for the development. The majority of entrepreneurial competences are developed at the university – subjects devoted to the development of entrepreneurship are included in the study programs. Environment of the university is very friendly to this – not only because of activities devoted to entrepreneurship occurring in the academic environment, plenty seminars and trainings, but also because of the students’ personal maturity and motivation. Scholars actively raise the following questions: how to develop entrepreneurial competences effectively? Which methods are the most applicable? What kind of innovative methods are the most necessary? 104 students, who tried simulation traineeship of entrepreneurial development, were questioned in order to analyse the impact of methods and the change in entrepreneurial competences. The research was carried out in the Faculty of Economics and Management of Aleksandras Stulginskis University. The participants of the research were involved in the business simulation, where they had an opportunity to estimate themselves and improve their backgrounds, abilities and skills. Methods promoting and developing creativity were applied in simulation business enterprises; however, not all methods had worked. The methods of graphic representation were used by the minority and they were not considered to be very effective. The aim of the research was to determine entrepreneurial competences and innovative educational methods theoretically and to test empirically the development of entrepreneurial competences via simulation method.