Business Incubation Aid

Merchants registered in the Commercial Register of the Republic of Latvia:

• which meet the criteria for micro, small, or medium-sized enterprises in accordance with Article 2(2) of Regulation No. 651/2014;
• which are not older than 5 years at the time of application;
• whose tax debt does not exceed EUR 1000;
• who are innovative, technology-driven, export-oriented, or both export-oriented and innovative merchants in the creative industries, including merchants who produce dual-use goods, services, or technologies, or traditional merchants with export and/or innovation potential in one of the eligible industries (see criteria below);
• with a developed product, service, or technology at least at the minimum viable product/service (MVP) level, with a maturity level of no less than TRL4/BIMRL5.

Criteria

For an applicant to be eligible for incubation aid, the product, service, or technology must meet one of the following criteria:

• The merchant develops a product that is innovative, i.e. a good or service with high added value, including technological value, the development of which results in new or improved knowledge – such as research-based, new or improved techniques, methods, principles, processes, functions, or product features, and which has clearly identifiable advantages and superior value and sustainability parameters compared to competitors. This includes dual-use goods, services, or technologies with a technology readiness level of at least TRL4 (aid is provided at regional representative offices and the Riga Technology Representative Office).
• The merchant develops an export-oriented product, specifically one that primarily aligns with one of the areas of the smart specialisation strategy or is a merchant operating in a high-, medium-high-, or medium-low-technology industry or in knowledge-intensive services and is at least at the BIMRL5 readiness level (aid is provided at regional representative offices).
• The merchant develops a product or service that is export-oriented and corresponds to the creative industries sector or that is innovative and corresponds to the creative industries sector (aid is provided at regional representative offices and Riga Representative Office of Creative Industries).
• A traditional merchant who develops a product or service in one of the eligible sectors, including the creative industries, and who is at least at the BIMRL5 readiness level, with export and/or innovation potential (aid is provided at regional representative offices).

To substantiate the innovation, the merchant submits a description of the technology’s development, operating principle, and innovative elements, along with documents confirming the new or improved knowledge generated during product development, the product’s technological novelty, and measurable advantages compared to solutions available on the market. Innovation may be substantiated, for example, with the following documents:

• research documentation within the merchant confirming the research or experimental development conducted;
• a study by a scientific institution or an independent expert’s opinion/assessment of the developed solution;
• test results in the form of practical and measurable readings confirming the product’s functionality or improvements;
• an intellectual property application or registration relating to the developed technological solution (e.g., a patent, software copyright, etc.);
• market research and a comparison of the product’s parameters with competing solutions in the target market, confirming the product’s advantages and added value;
• etc. documents that objectively confirm the innovative nature of the product, its technological novelty, and measurable advantages compared to solutions available on the market.

Dual-use products are goods, including software and technologies, that can be used for both civilian and security and defence purposes and include goods representing the following fields:

• transportation (unmanned vehicles, vehicle electrical and thermal systems);
• robotics and autonomous systems, artificial intelligence/machine learning (data analysis);
• space-based communication and surveillance (enhanced navigation system);
• quantum technology (quantum cryptography, 5G technologies);
• security (cybersecurity, satellite- or drone-based wide-area surveillance);
• chemicals and materials (development and applicability of new materials, coatings and surfaces with high resistance to scratches and/or corrosion, good weather resistance and/or self-healing capabilities);
• biotechnology (modified organisms for environmental purification);
• healthcare (promoting mobility);
• educational entertainment (motion sensors);
• textile products (textile products with sensors);
• energy and motive power (generators, electrification, and hybridisation);
• electronics and telecommunications (high-performance autonomous telecommunications devices, sensors, and lasers).

The culture and creative industries include the following sectors: architecture, design, film, performing arts, visual arts, music, publishing, television, radio, and interactive media, advertising, video games and interactive software, cultural heritage, cultural education, recreation, entertainment, and other cultural activities that have economic value. Computer games and interactive software, recreation and entertainment industry products or services must be linked to other creative industries. More information: www.km.gov.lv

All recipients of incubation aid have access to basic incubation aid services aimed at achieving the goals set for the incubation period. Aid is available in both non-financial and financial forms.

Non-financial aid:

• Consultations provided by LIAA on issues relevant to business development;
• training sessions and seminars on business modelling, marketing, product development management, human resources management, financial planning and funding, and other topics relevant to business development;
• expert consultations;
• consultations with local and international mentors;
• networking and knowledge-sharing events to promote cooperation between the LIAA representative office, regional and specific industry merchants;
• participation in events aimed at promoting merchant recognition and presenting products/services to potential customers;
• co-working spaces.

Financial aid

Grant opportunities for all incubator merchants for business and product development, and to promote export capabilities.

For merchants who meet the criteria for an innovative merchant, two additional types of grants are available:

• trade;
• financial intermediation industry (except for financial technology enterprises, i.e. enterprises that develop new business models, implement innovations, create new financial products and services, and improve service delivery methods and business models);
• commercial services industry (real estate activities and rental and leasing activities);
• gambling;
• fisheries and aquaculture;
• primary production of agricultural products;
• manufacture, processing, and advertising of tobacco and tobacco products;
• investments in airport infrastructure, landfills, and the expansion of waste treatment facility capacity related to the production, transportation, and processing of fossil fuels.

Please be informed that the selection process for business incubation support applicants will take place from 1 April to 30 April 2026. Please find below the schedule containing selection criteria and the planned dates for the evaluation committee meetings:

Submission and evaluation of applications for the Business Incubation Aid Programme, and receipt of financial aid

Please refer to the infographic for the steps to receive aid, but before filling out the application, we encourage you to schedule a consultation at the nearest LIAA representative office in Latvia. 

• Applications must be submitted via the liaa.business.gov.lv e-service
• Procedures for evaluation and provision of aid PDF.

Applications for LIAA incubation programme are accepted based on administrative-territorial divisions (the regional principle) and the affiliation with the relevant territory.  
Applications for incubation aid must be submitted to the designated representative office of the city/municipality, but the advisory committee’s proceedings and an incubation aid programme specialist will be provided at the region’s largest representative offices. 
 
Entrepreneurs can receive consultation on various issues related to incubation aid at any representative office nearest to them. 
 
Merchants from any administrative territory in Latvia may apply to the Representative Office of Creative Industries, provided that the merchant operates in the creative industries sector; while merchants whose legal/actual place of business is in Riga and who meet the criteria for an innovative merchant may apply to the Riga Technology Representative Office.  

Contact information for all representative offices can be found here. 

LIAA representative offices in Latvia and the incubation services they offer

At LIAA representative offices in Latvia, incubation aid is available to the following merchants:

• Innovative merchant/Innovative merchant in the creative industries
• Merchants developing dual-use goods, services, or technologies
• Export-oriented merchant/export-oriented merchant in the creative industries
• Traditional merchant/creative merchant from eligible sectors with high export or innovation potential

LIAA representative offices in Latvia

The programme rules are set out in Cabinet Regulation No. 407 European Union Cohesion Policy Programme 2021-2027 1.2.3. Specific aid objective “Promoting sustainable growth, competitiveness and job creation in SMEs, including through productive investments” 1.2.3.1. implementation rules for the measure “Aid for the development of innovative entrepreneurship in SMEs” (likumi.lv)

Each implemented project must also comply with visual identity and communication requirements. The EU fund communication guidelines are available on the website esfondi.lv in the section EU funds 2021-2027 --> Guidelines and explanations

The NDP and EU logos can be downloaded here (JPG).

As part of the incubation aid, the following are evaluated:

• Technology readiness level – TRL

or

• Business, investment and manufacturing readiness level – BIMRL, which is determined in accordance with the table below, along with the descriptions. The relevant scales are tailored to the project’s target group and will be applied depending on the type of aid applied for by the applicant and whether the applicant meets the criteria for an export-oriented, innovative, or creative industry merchant.