The paper deals with the evaluation of the impact of capital investments on the value added in Latvian dairy specialization farms on the basis of FADN data. The evaluation is carried out through analysing the current level of capital investments in Latvia and the link between capital and the net value added and its main components, based on the comparison with the EU leading milk producing countries. The analysis shows that the current level of capital investments is low in Latvia, especially in buildings and fixed equipment. Insufficient capital investments result in high intermediate costs, lower labour productivity due to large labour contribution in the total output, and also in considerably lower level of the value added, especially per AWU in Latvia.

The evaluation of EU Member States’ co-founded programmes was assigned particular importance in recent years. The core question to be answered in programme evaluation is whether the stated objectives are accomplished by particular intervention. Until recently, the use of ‘naïve’ estimates was common in the evaluations of EU Member States Rural Development Programmes. The use of these estimates leads to potentially substantial selection bias resulting from using the outcomes of non-participants as a proxy for the possible outcomes of participants in the case of non-participation. The effectiveness of interventions on outcomes of interest can be better evaluated by propensity score matching (PSM). The objective of the study is to determine the net average effects from semi-subsistence farm support measure of the Latvian Rural Development Programme 2007 – 2013. To reach the research objective, propensity scores based on the most important characteristics were calculated for participants and non-participants of the measure and average treatment effects for gross value added were evaluated by matching methods. The research results show that the positive programme effects evaluated by ‘naïve’ estimators are overestimated in comparison with the results obtained by more rigorous PSM method.

Forethought deployment of an industrial production system is a significant step towards improving economic benefit of an industrial company. The author proposes the procedure for finding an optimal specification of multirobot system, which considers it on the level of components of the robotic system. Components are grouped into mobile or stationary units of the system. A set of agents is considered as a solution for particular mission, it defines a specification of a heterogeneous multi-robot system. The paper presents the concept of the optimization procedure and describes the implementation of investment costs optimization step, which uses genetic algorithm.

The comparison of business and taxation conditions in several countries is one of the main tasks of each investor who claims to start a new business. The same problem is significant for state authorities responsible for attraction of investments as well as for scientists who analyse problems related to investment attraction. The aim of the research is to propose the methodological model to compare taxation conditions of various business forms. The taxation of six different business forms was compared. As the examples for research object, the smallest business forms in Lithuania were chosen: a person having a business certificate, a person engaged in agricultural activity (a farmer), a self-employed person engaged in agricultural activity, a person owner of sole-proprietorship and a person owner of the joint-stock company. In order to compare and evaluate the amount of taxes mathematically, the hypothetical data were taken which allowed to identify the least and the most taxable forms of business in Lithuania. Analysing different business forms and their taxation conditions, the following methods were used: systematic, comparative, logical analysis and synthesis. Legal acts regulating the taxation of each form of organizational business were investigated and summarized. The most difficult conditions for the owners of sole proprietorships in Lithuania were observed in 2010. They had to pay about 50 percent of their incomes. But the best conditions for small business had those people who worked with business certificates. They paid only 6 percent of their incomes.

The social enterprise features are well known in the world history while in Latvia there is a lack of studies and understanding about it. The aim of the research paper is to study the influencing factors of social entrepreneurship in Latvia. In the research the essence of social entrepreneurship and the main principles for definition of social enterprises – social mission, business orientation and involvement of marginalized groups are described. The analysis to determine the most important internal and external factors influencing development of social entrepreneurship was carried out. It was found out that the main external factors are political and legal environment, lack of knowledge about significance of social entrepreneurship, dominating values in society and such internal factors as access to finances, recruitment of professional and well motivated personnel.

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.

Purpose of the paper is to assess contribution of the European Fishery Fund (EFF) and European Maritime and Fisheries Fund (EMFF) in the development of coastal areas. The article reviews particulars of implementation of the Fishery Funds in various planning periods, in more detail analysing the implementation impact in the period of 2014−2020, based on analysis of the needs, goals and projects of the current period. Even though the European Fishery Fund (EFF) in Latvia is being implemented since 2007, there is a lack of scientific publications on its impact on the coastal development. EMFF for the period 2013−2020 has a dual role in the development of coastal areas – as a development tool of the fishery sector and as a development tool of communities in the fishery areas. It is implemented by using communityled local development (CLLD/LEADER) approach. In case of Latvia, a multi-fund approach – EFF/EMFF and European Agricultural Fund for Rural Development (EAFRD) is already being used for two planning periods. We conclude that the impact of EFF/EMFF on the development of coastal areas is more directed at development of infrastructure of the coastal communities but is less engaged in the fishery development matters - accordingly increasing other activities and preserving historic and cultural heritage for development of tourism and place of residence in the coastal area in interaction and in addition to EAFRD rural development measures of the coastal areas.

Latvia, just like many other EU member states, receives multiannual financial support through the EU financial instruments for implementation of the common policies by the EU. The support is aimed at the priorities set at the level of the EU and is adapted to the peculiarities of each member state’s sphere. The aim of the study is to evaluate the importance of the support, provided by the EU financial instruments, for the development of Latvian fishery sector. The analysis was made on the basis of the available data and their quality. As a result of the study, the author found out that in the planning periods of 2004 – 2006, 2007 – 2013 and 2014 – 2020, for the development of fishery sector in Latvia the support of several EU financial instruments was available. Development of fishery sector is significantly impacted by the availability of the financial support through the EU financial instruments and use thereof. Considering the dependence of the fishery sector on the sustainability principles coordinated at the level of EU, corresponding fishery possibilities, and considering the increase of global competitiveness in the world’s markets, the strengthening of fishery’s competitiveness plays a significant role in the facilitation of the Latvian economy.

The aim of this paper is to summarise the experience gained at different levels of tourism destination planning in Latvia, identify the problems encountered during strategy planning and implementation, analyse the causes, and search for solutions. Theoretical aspects of the tourist destination planning have been extensively reviewed in publications, yet the research on what main problems planners have faced during the planning process, has been insufficient. In the last twenty years of Latvian tourist destination planning, at different levels, part of the plans were developed as documents; however, not all of them were implemented. The qualitative research summarises the experience of municipalities and tourism destination planning in Latvia. The research results show formally drafted tourism development documents of different levels and types in Latvia conform to modern planning theory and practice. In some cases even the latest knowledge and experience; create unique, innovative and competitive solutions. Tourism planning at the local level is often a painful process which raises a number of unresolved issues and unimplemented activities. The most significant differences observed from a comparison of theory and good planning practices in tourism development planning in Latvia are that the planning process is implemented within the boundaries of one municipality without taking into account the larger boundaries of tourist destinations. The involvement of entrepreneurs has only been formal and major, large-scale investment projects have not been planned or implemented.

The paper is aimed at the assessment of opportunities for the financing of innovative activities in Latgale region. The analysis is based generally on the case of Rezekne. Firstly, the problem is determined - Latgale is the weakest region in Latvia from economical development point of view. Secondly, the overview of the financial resources for innovative activities is given. Finally, the author argues his opinion on necessity to develop innovative business in order to improve the situation in Latgale. One of the most important aspects that hamper Latgale's development is the lack of financial resources. The optimal schemes for the financing of innovative business are offered. The research lead to the conclusion that finances for sustainable development of innovative business could be attracted through the Latgale's small enterprises (SMEs) cooperation with regional higher education institutions (Rezekne Higher Education Institution, Daugavpils University), business support centres and Rezekne Special economical zone structures.