When we read or hear of a new study by Latvian scientists, naturally we are happy about their accomplishments. However, we rarely consider about the impact of this one specific study on all the parties involved, on the sector as a whole, and even on related industries, and potentially on possibilities to improve the Latvian economy. The huge impact of science is not always measurable, and thus cannot always immediately be grasped.

 

For example, in 2020 Latvia became an associate member state of the European Space Agency (ESA). When this news became public, it was accompanied by questions such as – were we really going to invest in building our own spaceships and going into space? However, there is more to the space industry than this. Participation in this organization opens up new collaboration opportunities for Latvian scientists and businesses – involvement in European space missions and consortia means that company employees can improve their high-tech skills and aptitudes in the space industry, while students can do internships at ESA technology centers, and write doctoral theses under the watchful eye of ESA experts. Participation also confers the possibility to promote the development of our universities' research and study base, thus promoting the development of the higher added value economy in Latvia. There are also clear benefits for the Latvian economy, because ESA status allows Latvia to apply for technological commissions under the aegis of missions organized by the ESA. And this is just one narrow industry.

 

“Science is hugely influential,” says Anda Ķīvīte-Urtāne, Associate Professor of the Department of Public Health and Epidemiology of Riga Stradiņš University and Director of the Institute of Public Health, who is among the authors of the section on the impact of science at the World Congress of Latvian Scientists. “Usually, we have prioritized the question of what impact does science have on the economy? Is it profitable? Can it be sold? But it is clear that science has the most considerable impact on the labor force, environment, public safety, and health. We will attempt to address how this impact can be understood, measured and rendered visible. For everyone!” says A. Ķīvīte-Urtāne in explaining the basic principles according to which the section on the impact of science was devised.

 

Seeking applications in business

According to Dr. Dmitrijs Stepanovs, Deputy State Secretary of the Ministry of Education and Science, and Director of the Department of Higher Education, Science and Innovation, “There are three main ways in which science influences the development of the country and society. Firstly, it does so by generating new knowledge and technologies. Secondly, it does so by developing and searching for ideas within one industry, and by collaborating with other industries and various social groups beyond the confines of academia. Thirdly, it fosters development by building and creating a foundation for the development of society's human capital.” Dr. Stepanovs stresses that the principal strategic objective of Latvian science policy is to foster the development of a smart and technologically innovative society in Latvia.

 

In recent years in Latvia, there has been an intensive and ongoing search for ideas and their implementation, resulting in the creation of new knowledge and technologies, conferring long term benefits to both Latvian society and the economy. While scientists are increasingly realizing the significance of commercialization and valorization, industries are starting to collaborate with scientists, recognizing the potential for all concerned.

 

The Institute of Solid State Physics of the University of Latvia (ISSP UL) is one example of how scientists try to collaborate with industry. From 1 February 2017 to 31 January 2024, the institute is implementing the CAMART² project in partnership with the Royal Swedish Institute of Technology – the biggest technical university in Sweden – and the Association of Swedish Research Institutes. Its objective is to improve the ISSP UL Center of Excellence, the idea being that its focus should transition from academic science to applied research and collaboration with the industry.

 

On the other hand, Riga Technical University is implementing the “Industrial PhD student” program in collaboration with large Latvian businesses. This means that the doctoral student develops a doctoral thesis study, in accordance with the interests and requirements of the collaborating company. Accordingly, in collaboration with the relevant company, the university trains a doctor of science in a subject initiated by the company. The doctoral student works at the university, and is actively involved in the company's research and development work. The chosen topic is based on the university's scientific excellence and the business's strategic vision for technological development.

 

In his doctoral dissertation, the first Industrial PhD student Rūdolfs Rumba is developing a set of multi-agent system methods to make the movement of autonomous drones safer and easier. “Drone technology is developing very fast, and the usage potential is expanding. Drone technology is one of LMT's research and development fields. My research will contribute to infrastructure, because at present no comprehensive solution is available globally for regulating and controlling autonomous drone traffic,” explains Rudolfs, whose studies are co-financed by LMT.

 

Science-intensive businesses are being launched

Another trend that has been regularly observed in Latvia during the past few years is the creation of science-intensive businesses. A science-intensive company is unlike other businesses in that its operations are based on scientific discovery. The next stage in its development is the search for practical applications of its scientific discoveries. Depending on the results, the technology's purpose may change. Moreover, another crucial factor is that the path to maturity and profitability taken by science-based companies is invariably much longer than that of standard start-ups. In an interview with the portal “Labs of Latvia”, Sarmīte Karlsone, Head of the Innovation Support Division at the Investment and Development Agency of Latvia once explained that, “European and Latvian scientists are capable of coming up with promising ideas. It is no coincidence that in recent years a quarter of all venture capital investments in Europe, equivalent to about EUR 10 billion, have been directly invested in “deep tech” businesses. For over a decade now, the Investment and Development Agency of Latvia (LIAA) has collaborated with the “Commercialization Reactor” acceleration fund, which has unique experience in the development of science-based companies in order to promote the growth of this field in Latvia,” Thanks to this collaboration, in 2023 the Deep Tech Atelier took place for a fifth consecutive year. This is the most ambitious science-intensive technology industry conference in the Baltics, convening research organizations, industry experts, scientific start-ups, public administration representatives and tech enthusiasts.

 

Another trend that has been regularly observed in Latvia during the past few years is the creation of science-intensive businesses. A science-intensive company is unlike other businesses in that its operations are based on scientific discovery. The next stage in its development is the search for practical applications of its scientific discoveries. Depending on the results, the technology's purpose may change. Moreover, another crucial factor is that the path to maturity and profitability taken by science-based companies is invariably much longer than that of standard start-ups. In an interview with the portal, Sarmīte Karlsone, Head of the Innovation Support Division at the Investment and Development Agency of Latvia once explained that, “European and Latvian scientists are capable of coming up with promising ideas. It is no coincidence that in recent years a quarter of all venture capital investments in Europe, equivalent to about EUR 10 billion, have been directly invested in “deep tech” businesses. For over a decade now, the Investment and Development Agency of Latvia (LIAA) has collaborated with the “Commercialization Reactor” acceleration fund, which has unique experience in the development of science-based companies in order to promote the growth of this field in Latvia,” Thanks to this collaboration, in 2023, the Deep Tech Atelier took place for a fifth consecutive year. This is the most ambitious science-intensive technology industry conference in the Baltics, convening research organizations, industry experts, scientific start-ups, public administration representatives and tech enthusiasts.

 

One initiative definitely worth highlighting is he acceleration fund Commercialization Reactor. In 2017, it was one of three investment funds chosen in a public selection, and was awarded EUR 5 million by the Development Finance Institution ALTUM from the European Regional Development Fund. The raison d'être of acceleration is to provide a springboard to promising high-value-added early-stage businesses. In contrast to classic venture capital funds, accelerators not only invest, but also provide early businesses with much-needed acceleration services to facilitate their further growth. Commercialization Reactor specializes in commercializing science. Its experts select scientists' ideas, which they subsequently prepare and present at the Ignition Event. This event is attended by interested parties seeking opportunities to start their own business. The event is designed to bring scientists and professionals together who could help to make the idea a reality.

 

The Ignition Events have brought several science-intensive start-ups to the fore, which successfully continue their work. The first time that Aija Pope, CEO of TerraWaste, participated in the Ignition Event, she applied to the Amnis Air team. “At the time, it was a case of a tiny dream coming true, because I have always considered launching my own company. Since today's business environment is so saturated with various innovations and inventions, I concluded that it would be hard to come up with my own brilliant idea. Commercialization Reactor helped to provide the necessary additional elements: a scientist, who became a co-founder of the company, a scientific discovery, along with support in the form of knowledge, contacts and initial investment.” Today, she runs TerraWaste, which has developed a waste processing technology that makes it possible to produce "soup" in the form of an oil product. By inserting waste into the hydrothermal liquefaction reactor developed by the company and adding catalysts and water, raising the pressure to 200 bars at a temperature of 300 to 350 degrees, raw material for new plastic products is produced within 30 to 45 minutes. The idea was conceived by a team of scientists from Cranfield University in the United Kingdom. Following the successful creation and testing of a prototype in India in 2018, the team presented their idea at the Ignition Event. There they met Aija Pope and her colleague, subsequent to which they decided to collaborate on the development and commercialization of this technology.

 

The article was written within ERDF project No. 1.1.1.5/17/I/002 "Integrated national measures to strengthen the representation of Latvian R&D interests in the European Research Area"