Latvia Faces a Puzzle in Securing EU Funding Despite Standards and Potential

Latvia seems to be caught in a paradox, where despite adhering to EU standards and boasting strong institutional frameworks, it lags behind in capturing its fair share of EU funding. Even though EU support is designed to drive innovation and regional cohesion, Latvian companies and projects often struggle to compete for the capital, as the grant-seeker pool includes well-resourced competitors from countries with greater funding absorption capacity.

Recognizing these challenges, Venture Faculty and its partners have taken initiative to identify the root causes. One of the main issues lies in the complexity of EU funding mechanisms and the sheer administrative burden of applying. Many Latvian SMEs and startups lack the internal capacity to navigate these bureaucratic structures. This is compounded by limited grant writing expertise, scarce guidance on proposal writing, and fragmented information flow across government bodies.

A project under the purview of Venture Faculty, supported by local institutions, set out to demystify the EU funding landscape. They analyzed application patterns, processing timelines, and success rates. Their findings revealed disproportionate success among organizations with prior grant experience and strong networking connections. Conversely, smaller innovators, even with promising solutions, were systematically edged out. Closing this gap will require mentorship programs, simplified application types, proactive outreach, and localized support ecosystems that engage grant writers and matchmakers.

This effort illustrates a broader need for Latvia to reconsider its approach to EU funding. Instead of waiting for project ideas to emerge spontaneously, development agencies may need to undertake early-stage guidance, build centralized information hubs, and proactively invite applications in strategic domains. This model could allow Latvia to punch above its weight in research, innovation, regional development and startup scaling. Poised at the crossroads of potential and underperformance, Latvia’s next move could determine whether it remains a cautious observer or becomes an empowered participant in the EU’s innovation agenda.

To read more: https://www.venturefaculty.io