Please note that the English version of this text has been prepared with the assistance of AI, and in some instances, it may not have been subsequently reviewed or edited by the authors.
On July 14th, the Cabinet of Ministers approved new regulations that will form a clear and modern legal framework for the transfer of scientific results to the economy, which will promote innovation development, cooperation with businesses, and more effective utilization of the value generated by publicly funded research. This is stipulated by the regulations approved by the government.
Until now, Latvia did not have such a unified regulation that would determine how state scientific institutions can commercialize knowledge, technologies, and inventions arising from publicly funded research, or make investments in new and existing companies. This created legal uncertainty and hampered technology transfer from laboratories to the business environment.
“The new regulation creates a system that will allow state scientific institutions to more actively commercialize their research results, taking into account the specifics and needs of each institution. This is a significant step towards ensuring that public investment in science generates even greater contributions to Latvia's economy, competitiveness, and the well-being of its citizens, explains Minister of Education and Science Ilze Indriksone.
The new regulations stipulate that each national scientific institution will have to establish clear internal procedures for intellectual property management and commercialization. Institutions will determine the principles for evaluating commercialization potential, decision-making, risk management, and remuneration distribution. A requirement to document commercialization processes and ensure their transparency is also foreseen.
The regulation specifies three main types of commercialization: licensing, assignment of rights, or joint use of rights by investing in company share capital, or by forming a joint venture. This will allow research institutions to choose the most suitable development model for specific inventions or technologies, while adhering to the principles of efficient use of public funds and European Union state aid regulations.
An essential part of the regulation is also strengthening researcher motivation. The regulations stipulate that employees of scientific institutions whose intellectual results are successfully commercialized are entitled to fair remuneration from the generated income. This will promote researchers' involvement in innovation and facilitate the practical application of scientific achievements.
Simultaneously, the regulation introduces principles for investment risk assessment and management, allowing research institutions to invest in high-potential innovation projects, including early-stage startups. This approach is based on international practice and promotes the development of knowledge-intensive companies in Latvia.
The new regulation is expected to improve cooperation between the scientific and business sectors, foster the creation of startups, increase the economic return of publicly funded research, and promote the development of innovations in sectors such as information and communication technologies, healthcare, biotechnology, agriculture, and education.
With the approved draft regulation “Regulations on the economic use of knowledge, technologies and inventions of state scientific institutions, assessment of investments, risk tolerance and determination of remuneration” can be found on the Cabinet of Ministers website.
