Latvian IT Cluster
Published on 24 November 2018
Latvia
Latvija
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
The LITC is the first cluster in Latvia which started its initial activity in 2001 and was officially established in 2007. The LITC stakeholders are Latvian IT companies, as well as public bodies, industry associations, other clusters and more, because it operates according triple-helix principle. The LITC vision is to be the go-to partner in digitalisation projects, playing a major role in increasing the competitiveness of Latvian companies on the global markets. The unique feature of the Latvian IT Cluster is the interaction between its innovative and export-oriented member enterprises, which are at the same time market competitors. The LITC members have understood that they will be able to compete successfully on the global scale only if they will unite forces. They have started a cooperation in such specific areas as implementing joint standards for project management and quality assurance; establishing a joint model of competences; acknowledging potentially available human resources for their efficient exploitation in joint projects; strategic planning and market research; marketing activities for promoting the Latvian IT sector in target markets; coordination of cooperation with potential clients; joint activities for attracting potential customers, etc. Since 2018 LITC started to operate as the Digital Innovation Hub offering access to cross-industry and technological expertise, such as market insights, human capital growth, new technology trends, etc.
Expert opinion
The Latvian ICT cluster is a good example of the merits of clustering. Instead of being competitors fighting to survive on a small local market, the cluster structure enables to take on larger project collectively, to be more visible internationally and to find new cooperation pathways within the sector but also in providing support (ICT uptake) to other sectors and clusters. All of these contribute to the competitiveness of its members.
Similar experiences can be found elsewhere. For example, the Estonian ICT cluster has been set up for similar reasons and has also shown to be successful in supporting the ICT sector. Likewise, an ICT cluster has recently been established in Georgia where the cluster has been very important in changing the mindset of local IT entrepreneurs regarding competition/cooperation and understanding their collective value offer to other sectors.
The ICT sector, which tends to be more innovative in its business models, is a good starting point for establishing national or regional clusters, i.e. the willingness for cooperation might be higher than in more traditional sectors. As has been the experience in Latvia, the success of the ICT cluster has boosted the founding of clusters in general. Therefore, it is highly recommended to contact and learn from the rich experience of LITC and other existing ICT clusters around Europe while starting a new regional clustering initiative.
Similar experiences can be found elsewhere. For example, the Estonian ICT cluster has been set up for similar reasons and has also shown to be successful in supporting the ICT sector. Likewise, an ICT cluster has recently been established in Georgia where the cluster has been very important in changing the mindset of local IT entrepreneurs regarding competition/cooperation and understanding their collective value offer to other sectors.
The ICT sector, which tends to be more innovative in its business models, is a good starting point for establishing national or regional clusters, i.e. the willingness for cooperation might be higher than in more traditional sectors. As has been the experience in Latvia, the success of the ICT cluster has boosted the founding of clusters in general. Therefore, it is highly recommended to contact and learn from the rich experience of LITC and other existing ICT clusters around Europe while starting a new regional clustering initiative.
Works at
Interreg Europe Policy Learning Platform
Resources needed
Until 2012 the only funding of the Cluster was provided by its members. Since 2012 the LITC is co-funded by the ERDF under a specially designed Clusters' Programme and it also actively participates in national, regional and European projects. The LITC is managed by 4 employees and the Board.
Evidence of success
The LITC has grown from 19 to 40 member companies from 2007 to 2018. In 2016, the LITC has been awarded with the Silver European Cluster Excellence Label confirming successful implementation and operation of the cluster initiative. Also, the evidence shows that the LITC enterprises operating in a cluster-specific environment, which improves their innovation capacity, have been more competitive in the long-term than the IT enterprises working outside the Cluster.
Potential for learning or transfer
The LITC is a prime example of what an industry NGO should be – driven by a future oriented industry vision, engaged in dialogue both within the IT industry and beyond, open to experiments and new forms of collaboration. The LITC is the first and the longest standing cluster in Latvia, which has served as a successful role model building a stronger business environment to cluster development across other sectors and industries, as well as promoted support for clusters of Latvia over the past decade. (today we have 18 officially registered clusters in Latvia) The LITC example shows that cluster can boost the long-term competitiveness of its member companies, as well as foster the ICT uptake by enterprises of other sectors and industries. Therefore, it can serve as a good practice to explore and transfer for other regions.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Latvian IT Cluster
Latvia
Latvija
Contact
Director, Project Manager