sector 04

I N F O R M AT I O N T E C H N O LO GY
LIAA - Investment and Development Agency of Latvia

I N V E S T I N L A T V I A W I T H P O L A R I S

THE POLARIS PROCESS

MUNICIPALITIES INVESTORS PRIVATE SECTOR UNIVERSITIES GOVERNMENT REPRESENTATIVES LIAA

The POLARIS process is an investment strategy focused on the economic growth and development of Latvia. The strategy is based on the alliance between the public sector including national and local governments, the private sector covering national and international companies, investors willing to invest in Latvia, and finally, major Latvian academic institutions incorporating the main universities and research institutions.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

T H E P O L A R I S P R O C E S S I N D E T A I L
What is POLARIS? How to get involved? The POLARIS process is an investment strategy aimed to promote investment in Latvia and facilitate the growth of the Latvian economy. The strategy focuses on the alliance between three major stakeholders: public, private and academic sector organization. The POLARIS process was developed after 3 years of researching world economic trends, the abilities of national and local authorities, the potential of research organisations, and companies located in Latvia. In addition to developing the methodology to align the actions of all stakeholders, the research identified key sectors where Latvia has unique selling propositions to foreign direct investors. The primary focus of the strategy is the cooperation between stakeholders and to identify specific tasks for the involved parties in order to ensure the most effective work for the investors. This process determines a methodology guaranteeing that whenever an investor wants to invest in Latvias key sectors, one can easily become an active part of the POLARIS process and use all the benefits provided. Although the respective services have been provided by the governmental and municipal institutions before the POLARIS process, never have these services been ensured to this extent or with such integrity. The POLARIS process integrates the high-level state institutions, municipalities, universities, industrial associations and private companies into a harmonized system. The first step is to contact the LIAA and confirm your interest in smart investments. Considering the expressed interest, the LIAA will then assign you a POLARIS investment advisor who will provide guidance and support throughout your investment. What are the costs? The costs are included in the current budgets of the involved stakeholders and do not require any additional expense for the investor. Moreover, all available business incentives and tax reliefs are made available, demonstrating the strong commitment of the governmental institutions and the LIAA. The alliance between the 3 aforementioned sectors is one-ofa-kind and it guarantees investors a smooth integration process that will enable an efficient investment process. You are invited to become a part of the POLARIS process and find out how it can benefit your company. The POLARIS process smart approach to investments in Latvia!

The solid history and existing competence of Latvian universities and research institutions constitutes an integral part of the POLARIS process. The specific sector knowledge coupled with the alliances among the public, private and academic sector creates an essential economic advantage. Consequently, these competencies and alliances will be applied to all the investment projects. The POLARIS process does not end once the investor decides to go forward with the investment. The LIAA with allied partners will provide the necessary assistance in knowledge management for respective sectors, project management support, and project implementation support in later stages. The POLARIS process is a tool to be used by foreign direct investors who are looking for something beyond a low-cost investment. A location such as Latvia, an alliance between sectors and knowledge make for a fast launch of an investment project. This is an ongoing strategy. It ensures the establishment of a longlasting relationship with investors. The POLARIS process has been designed for successful implementation, allowing for all the aforementioned objectives to be achieved.

Investment and Development Agency of Latvia (LIAA) 2 Perses Street, Riga, Latvia LV-1442 T: +371 67039400 F: +371 67039401 E: liaa@liaa.gov.lv W: www.liaa.gov.lv/en + twitter:@LIAAglobal

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

I N F O R M A T I O N T E C H N O L O G Y S E C T O R A T A G L A N C E
Building on the competence of the specialists that have emerged from these and other institutions many businesses have been created in the ICT sector and entry into the European Union has facilitated the provision of competitive and highquality services to foreign partners. These well-established institutes and stellar achievements prove the solid legacy and tradition of education, technology and R&D in Latvia. This is the perfect place for IT opportunities. The information technology sector in Latvia began in the 1960s when the Institute of Mathematics and Computer Science and the Institute of Electronics and Computer Science. The latter institute developed expert technology for Soviet moon programs, and had 800 employees working on R&D projects. In 1992, with UNESCO support, Latvia established its first Internet connection, after which internet and computer use expanded rapidly. In Latvia, the IT sector is larger than in any of the Baltic countries. During the last years, the IT services subsector has been experiencing an outstanding growth, much faster in Latvia than in the EU. The sector has a direct effect on the Latvian GDP and also highly impacts other areas of their economy. The IT sector was not impacted by the crisis. This can be attributed to innovative practices and a stable, well-trained and highly productive workforce.

IT consultancy and supply, and data processing account for the largest share of value added in the sector. The most promising services are the development of mobile applications, the implementation of e-solutions for government and healthcare, IT outsourcing for hosting and data processing, and game development. There is strong potential to keep on growing. We are confident about the economic recovery in Latvia, based on a high potential to export IT services to the rest of the European Union and America, as well as Russia and CIS.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

K E Y F I G U R E S
WELL-DEVELOPED EXPORT MARKETS
Share of revenues from outside the Baltics (1H 2009) Source: Baltic ICT market news

Well developed export markets: Latvia has a highly developed export market with nearly half of its turnover coming from outside the Baltic region. This figure demonstrates a high level of internationalization along with an eagerness to expand throughout the EU. In addition, it shows the quality of Latvias technology, the high level of demand in the EU and our countrys readiness to comply with EU standards. This clearly shows the maturity of the sector.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

K E Y F I G U R E S
MOST COMPETITIVE LABOR FORCE IN INFORMATION TECHNOLOGY SERVICES
Wage Adjusted Labor Productivity as value added divided by personnel costs times 100 (2008) Source: Eurostat SBS

Most competitive labor force in information technology services: Latvia offers internationally competitive human resources at all levels of expertise at very competitive costs. In fact, they are the most competitive labor force in the IT sector in Europe, ranking above and beyond the EU average. This competitiveness is demonstrated by an extremely competent, and stable workforce that is expected to grow.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

K E Y F I G U R E S
STRONG IN DATA PROCESSING AND HOSTING SERVICES
Share of data processing services value added to gross domestic product (2008) Source: Eurostat SBS

Strong in data processing and hosting services: We are very specialized in data processing, hosting, web portals, and other IT related activities. Latvian ICT infrastructures and broadband connection positions Latvia as the perfect IT partner.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

K E Y F I G U R E S
TOP 5 LOW BROADBAND TARIFF IN THE WORLD
World ranking of consumer broadband tariffs by country and operator measured in USD/megabit at PPP rates (2010) Source: research specialist Point Topic

$/MBIT

1 2 3 4
5

Hong Kong, HKBN, (bb Fibre Home 1000)

0.028

Japan, KDDI, (FTTH AU-Hikari Mansion Giga)

0.048

Romania, Romtelecom, (Clicknet Power)

0.163

Sweden, Riksnet, (Riksnet Broadband 100)

0.182

Latvia, Lattelecom, (Fibre Internet 4)

China, China Tietong, (J3 Shared 100M VDSL Unlimited)

0.241
0.247

6 7 8 9 10

Singapore, StarHub Cable Vision, (MaxInfinity Supreme)

0.443

Russia, Beeline (VimpelCom), (High Speed 22G)

0.353

Germany, UnityMedia, (1play Internet)

0.415

Finland, Elisa, (Laajakaista Super 100M/10M)

0.443

Top 5 low broadband tariff in the world: The Latvian network operator LatTelecom holds the 5th position in regards to lowest cost of broadband. Latvia is successfully competing with Hong Kong, Japan, China and Singapore, some of the most technologically advanced countries in the world. Thus, it is apparent that there is a direct link between easy access to technology and the success of companies. Technology firms can take advantage of this and profit from extremely well developed telecom market.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

K E Y F I G U R E S
FAST INTERNET CONNECTION
Average Connection Speed in megabit per second (Mbps) Source: Akamai annual report Q3 2010

Fast internet connection: The average speed of our internet connection is impressive. It is essential for business, specifically for IT and telecommunications firms that require mass storage and high bandwidth. Latvia can offer you a competitive advantage in data-intensive services, and it is the ideal location to set your telecommunications hub.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

K E Y F I G U R E S
HIGH BROADBAND PENETRATION
Percentage of population using Internet with broadband connections over 2 Mbps (2010) Source: Internet World Stats; Akamai annual report Q3 2010.

High broadband penetration: Latvia offers a remarkable level of internet access, boasting a higher level than its neighbors. The high level of broadband penetration is an indicator of the superiority of our infrastructure and the degree of commitment we have to ensure a quick and reliable connection for businesses. This reveals how important quality telecommunications connection is to us, and how we seek excellence in everything we do.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

F O R E I G N D I R E C T I N V E S T M E N T S
LARGEST FDI PROJECTS WITHIN THE SECTOR
Source: Lursoft

Fixed exchange rate of 1 EUR = 0,7028 LVL

* Currently Tieto Latvia, Ltd

Largest FDI projects within the sector: We have a great experience attracting FDI investments. In 2009, 28m were invested in the IT sector. Inviting companies to invest and settle operations in Latvia has been a twoway road. Latvia has benefited from having such quality operations within their borders and these companies have benefited from the knowledge bestowed upon them by the POLARIS process.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

E D U C A T I O N A L I N S T I T U T I O N S

Vocational level There are 4 programs. The vocational education level received more than 430 students during the 2009/2010 academic year. The most popular programs are Computer-based Systems and Programming. The program list is completed by Computer Use and Computer Science. Higher education There are 15 institutions at the higher education level. The most relevant to the sector are: Riga Technical University (RTU), University of Latvia, Liepajas University, Ventspils University College, Riga Technical College, Jekabpils Agribusiness College, Latvian University of Agriculture, Daugavpils University, Transport and telecommunications institute, Baltic International Academy, Information Systems Management Institute.

Collectively Latvia offers 44 programs at the college, professional, bachelors, masters and doctoral levels, receiving more than 4.300 students in 2009/2010. Computer Science, Information Technology, and Computer-Based Systems are the most popular programs. Other programs include Programming and Computer Network Administration, Programming and Applied Computer Science, Administration of Computers, Networks, Applied System Software, Computer Control and Computer Science, Computer- Controlled design of Microelectronic Chips, Software Engineering, SocioTechnical Systems Modeling, Information Systems, and E-learning Technology and Management.

Why is this such a competitive sector? You need not look any further for the answer. The key is in knowledge. The educational system supports the IT sector at both the vocational and higher education levels. In 2009/2010 there were 4.730 students involved in programs related to the life science sector.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

R E S E A R C H I N S T I T U T I O N S
LEADING RESEARCH INSTITUTIONS WITHIN THE SECTOR
Personnel of the key research institutions relevant to the sector Source: Research institutions

The Institute of Mathematics and Computer Science at the University of Latvia has specific research fields in mathematical foundations of computer science, complex systems modeling languages and tools development, graph theory, and visual information processing. The Institute of Electronics and Computer Science is a state research institute currently working on a type of timing measurement that is recognized as the most advanced for various applications where both extreme precision and high measurement rates are concerned. Event timing based on the novel interpolation technique can provide pico-second precision at measurement rates up to tens of MHz. On this basis, various custom-made, applicationspecific timing systems and devices are designed and a variety of related problems (such as reliable testing of high-precision timing devices) are solved. If you decide to invest in this sector, you will benefit from a special agreement between the educational system and your development department. This is the key to your companys success. We want you to benefit from our greatness.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

R E S E A R C H I N S T I T U T I O N S I N D E T A I L
THE INSTITUTE OF ELECTRONICS AND COMPUTER SCIENCE
Dzerbenes street 14, LV-1006, Riga, Latvia Phone: +371 67554500 Fax: +371 67555337 E-mail: info@edi.lv Web site: www.edi.lv

Institute Founded in 1960 as a part of the Latvian Academy of Science, Rapid development and breakthrough of IT in the world has added new fields of research to the Institutes development activities such as wireless sensor networks, embedded systems, image processing and processing of biometric signals. The highest accomplishment of the IECS is high precision event timers created by institute, which received international recognition from the International Laser Ranging Service and are successfully used in the European Union, China, Japan, Korea, Russia and other countries. IECS became the winner of the European IT Prize in 1997 for the development of the DASP-Lab System digital analyzer of radio frequency signals in time, frequency and modulation domains. Research fields The Institute of Electronics and Computer Science is currently working in: - Advanced technologies for time measurements and applicationspecific timing system design. a type of novel timing measurement method that is recognized as the most advanced for various applications where both extreme precision and high measurement rate are concerned, owning quilities quite competitive compared to the similar in performance but more expensive instruments from the world-famous manufacturers. In practice this technique can provide picosecond precision at measurement rate up to tens of MHz. - Advanced digital signal processing, signal-dependent sampling and transformations, asynchronous processing systems of non-stationary signals, biometric signal processing. Various projects related to the development of novel digital signal processing methods and their applications. - Randomized DSP and alias-free methods for signal processing. In 2007 the new theoretical basis for specific signal processing technology Digital Alias-free Signal Processing was developed. Technique which allows significant extension of the frequency range of real-world analog signals that can be converted and processed in a digital format.

- Wireless sensor networks, Cyberphysical systems, embedded systems and computer architecture. Operating systems facilitating rapid software development and portability with focus on embedded systems for wireless sensor networks. Low power system design and energy harvesting. Extended research experience and product development for medicine software systems, sensor network applications for medical care and environmental sciences, user interfaces for ubiquitous sensor environments and computing. Partners The IECS has an array of international and national partners, both public institutions and private companies. The main partners are the following: - German Aerospace Center DLR, Cavendish Instruments Limited, Detectronic A/S, Innospexion APS, Oy Ajat LTD, Zenon Sa Robotics and Informatics, Austrian Space Research Institute, Shanghai Astronomical Observatory, TIMA Laboratory, Wireless Sensor Networks laboratory at the University of Virginia, USA, and Lattelecom, Ltd.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

R E S E A R C H I N S T I T U T I O N S I N D E T A I L
THE INSTITUTE OF MATHEMATICS AND COMPUTER SCIENCE
Raina blvd 29 LV-1459, Riga, Latvia Phone: +371 67224730 Fax: +371 67820153 E-mail: imcs@lumii.lv Web site: www.lumii.lv

Institute The Institute of Mathematics and Computer Science, University of Latvia (IMCS) was established in 1959, as a computing centre of research character. At the Institute of Mathematics and Computer Science exceptionally high-power data processing systems have been elaborated and connected to the united European academic information grid. With the help of these systems, Latvian scientists can collaborate with their foreign partners in the experiments of modeling complicated processes. Development of new algorithms of quantum computing allowing for a much faster solution of problems too difficult for the traditional computers and requiring larger storage capacity done by institute researchers - member of the Latvian Academy of Sciences in cooperation with the University of Waterloo, was named as one of Top ten scientific developments in Latvia in 2007 by the Latvian Academy of Sciences. Research fields In the Computer Science field, The most important achievement in complex systems modelling languages and tools development is one of the most up-to-date in applicability of theoretical results and the justification of numerical methods for the second order eliptic and parabolic equations, especially for non-homogeneous media with strong nonlinearities as well as averaging methods for stratified media. In the data networking subject, the Sustainable e-infrastructure for research provides a vital foundation for the science base. IMCS has longstanding traditions in developing and maintaining progressive ICT infrastructure and providing public services in related areas. Today IMCS provides GRID computing environment and massive data storage. Different layers of e-Infrastructure are available today to support scientific research in Europe. Partners The IMCS has an array of international and national partners, both public institutions and private companies. The main partners are the following: - Telos Systems, Cisco Systems, Inc., ZZ Dats, Datorikas institts Divi, Baltijas Datoru akadmija, Tilde, TietoEnator, Datorzinbu centrs, FMS Group, RIX Technologies, Data Media Group, Exigen Services, Cube Media, Datorprogrammu Apgds (DPA), Tom Sawyer Software Corporation (USA).

the world system modelling tool GRADE, still unmatched system for managing very large graph-like diagrams. Other important research area is image processing, analyze and machine vision systems, graph theory, algorithms and graph drawings. Now institutes researchers work on next generations information systems, based on semantic technologies, which may soon replace the traditional information systems. In the mathematics area, the IMCS. current researches focus on studies of direct and inverse problems of mathematical physics in complex media. The results are used in such important industrial processes as intensive steel quenching or development of new kind of devices for more effective cooling. Internationally recognized researches of heat and mass transfer modeling, flows of gas and liquid matter in nonhomogeneous media, hydrodynamics and magneto hydrodynamics have been performed by researchers. Theoretical research is mostly concentrated around differential equations, numerical methods, fuzzy algebraical and topological structures, optimal control problems, discrete mathematics and others. Despite the theoretical character of research a very serious attention is given to the

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

W H Y I S I T I N T E R E S T I N G F O R Y O U

Your interest has already been sparked by the aforementioned figures- and there are plenty more to come. This is all due to the POLARIS Process. This sector is a strategic one for the country and of great importance to us- you too will benefit greatly from it. It is interesting to you because we work as a team in applying all the necessary knowledge that will add value to your investment. We are strongly committed to making the POLARIS Process a key factor in guaranteeing your success and satisfaction and in maintaining a long lasting relationship with you.

Key Government initiatives include the use of current and new sources of renewable energy to maintain leadership position and comply with Kyoto Protocol targets. Mainly supporting investments in biomass, wood energy and wind. The government also wants to increase energy efficiency in all industries to decrease energy intensity, and aims to continue limiting emissions and prepare local industries to take leadership positions in this area. The LIAA through the POLARIS process is committed to promote innovative products and to help Latvian greentech sector to develop new products and export them to international markets. We are ranked among the best European countries in ease to set up and manage a business. We offer a quality available workforce and exceptional conditions to maximize profit.

Latvia offers a very advantageous increased depreciation system in comparison to other Baltic countries. A 1.5 ratio may be applied to new technological manufacturing equipment used in business activities, providing legal basis for a decrease in taxable income. Make Latvia your hub for business and capitalize on all the business opportunities offered.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

H E R E I S A S T O R Y F O R Y O U
Martin Rose, Minden Pictures, Getty Images, Flash Press Media

C L U S T E R P O I N T
Once upon a time, an IT infrastructure software development company was founded. The year was 2006. Today it
is a small firm, employing less than 20 people both in their Latvian and London offices. The company, Clusterpoint, develops and supports IT infrastructure software and systems, specifically developing new and innovative database management systems. Their top product, Clusterpoint Server, is 100 times faster than a traditional database and three times more powerful, thus allowing higher productivity and growth at a reduced cost. The company has proved to be outstanding in the Latvian market, developing software and systems that compete with highly recognized products from huge companies in the sector, such as those produced by Microsoft and Oracle. The fact that Clusterpoint competes with global leaders proves its level of knowledge, leadership, know-how and expertise. This is apparent since one of its major clients is LatTelecom, the largest telecommunications company in the country. At the Clusterpoint development center in Latvia, they work with a number of government ministries and universities. A clear example of this close relationship with universities is the Eureka Project. This project was the result of collaboration, shared funding and mutual support between Clusterpoint, the Institute of Mathematics and Computer Sciences in Riga, and the Latvian Ministry of Education. Clusterpoints strategy for growth seeks investors and expertise while continuing to expand internationally, with the support of the LIAA. Clusterpoint is a prime example of the POLARIS process helping a small business to expand globally, while consistently producing high quality goods and services.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

H E R E I S A S T O R Y F O R Y O U
Digital Vision, Getty Images, Flash Press Media

R E G U L A
Once upon a time, a company named Regula was created by a group of scientific engineers from the Belarusian
State Polytechnic University. Since its foundation in 1992, the company has become a leading developer and producer of hi-tech forensic equipment and software for ministries of internal and foreign affairs, customs, banks, and insurance companies. Regulas production center is located in Daugavpils, in southern Latvia, where they manufacture products for Europe, the US, China, Japan and other countries. The company employs 55 people in Latvia and over 100 worldwide. Regulas uniqueness is rooted in being the only company to offer a complete solution, including hardware (passport readers, document examination equipment, and special devices), software and databases of ID document samples. Among their major international clients and projects, Regula collaborates with border control and security authorities in the United States of America, United Kingdom and other countries. The LIAA collaborates with Regula to develop new partnerships and to expand sales outlets. Also, the LIAA helps Regula gain access to European funding and to exhibit at international fairs and conferences across the EU. This is a perfect example of how the POLARIS process can position Latvia as a key country to outsource operations and is a proven key partner in the supply chain of multi-national firms.

sector 04 information technology

LIAA - Investment and Development Agency of Latvia

G E N E R A L I N F O R M A T I O N
KEY FACTS ABOUT LATVIA

64.000 square km Population of 1,9 million Latvian, Russian, English and German spoken Member of the EU and NATO since 2004 and the WTO since 1998 GDP of 18,12 billion euros in 2010 FDI stock of 8,25 billion euros in 2010 Fixed exchange rate of 1 EUR = 0,7028 LVL 3 major ice-free ports and 4 special economic zones 15% corporate income tax 1,5 depreciation ratio for new technological equipment Easy to set up and manage business Equal rights and benefits for both foreign and local investors Liberal employment legislation LIAA ranked 7th globally in 2009 by the World Bank out of 213 investment promotion agencies

We offer you costfree advisory and information services to facilitate your investment in Latvia. Take advantage of the POLARIS process. Further information at www.polarisprocess.com Further detailed information on investment opportunities in Latvia at www.liaa.gov.lv

Please do not hesitate to contact us!

Investment and Development Agency of Latvia (LIAA) 2 Perses Street, Riga, Latvia LV-1442 T: +371 67039400 F: +371 67039401 E: liaa@liaa.gov.lv W: www.liaa.gov.lv/en twitter:@LIAAglobal

sector 04 information technology

LIAA - Investment and Development Agency of Latvia