Design in Latvia is an important driver of competitiveness, innovation and productivity in the national economy, extending beyond the traditional understanding of aesthetics and the visual design of products. This is confirmed by the research report “Identifying the Design Economy and Its Importance to Latvia’s National Economy”, prepared by researchers at the Institute of Culture and Arts of the Latvian Academy of Culture (LAC). Given that the term “design economy” has not previously been used in Latvia, while earlier studies have focused mainly on the design sector, this methodology makes it possible for the first time to identify the design economy as a broader segment of the national economy and assess its economic contribution. This is one of several reports prepared at the initiative of the Ministry of Culture within the national research programme project “Latvia’s Cultural Ecosystem as a Resource for National Resilience and Sustainability”.
“Design is a significant part of Latvia’s economy, although society often fails to notice it. The study therefore focuses specifically on the design economy, which makes it possible to encompass a broad range of services, digital solutions, process organisation and the advancement of development – in other words, the creation of added value,” emphasises LAC researcher Ieva Zemīte. The study data, based on an analysis of statistics from the Central Statistical Bureau, show that the design economy accounts for approximately one tenth of Latvia’s economic activity and represents the largest part of the creative economy – on average, 70% of all economically active enterprises in the creative economy sectors are connected with the design economy. Moreover, design skills are used in almost every sector of the national economy. According to data provided by the State Revenue Service, more than 60,000 people in Latvia were employed in occupations requiring design skills in 2023.
The study analysed the development of Latvia’s design economy from 2013 to 2023. During this period, the number of economically active enterprises in the design economy increased by 44%, employment rose by 30%, turnover grew by 123%, and the added value generated increased by 186%. These indicators confirm that the design economy is one of the fastest-growing areas of the creative economy and generates high added value.
The authors of the study note that the importance of the design economy continues to expand, as design approaches are used across various sectors of the national economy, including information technology, manufacturing, healthcare, education, financial services and other fields. It is precisely the ability to understand users’ needs, develop new solutions and improve processes that makes design one of the most important instruments of innovation.
Another significant outcome of the study is the methodology developed for identifying the design economy in Latvia. In cooperation with the Latvian Design Council and using internationally established approaches, the researchers identified 72 NACE Revision 2 economic activity codes that characterise the design economy and also analysed occupations in which design skills are used. This provides a basis for the future monitoring of the design economy and for evidence-based decision-making in the fields of cultural policy and economic development.
The research report “Identifying the Design Economy and Its Importance to Latvia’s National Economy” was prepared by a team of researchers comprising Ieva Zemīte and Baiba Tjarve from the Latvian Academy of Culture, and Ilze Judrupa from Riga Technical University. The report was produced within the project “Latvia’s Cultural Ecosystem as a Resource for National Resilience and Sustainability” / CERS (No. VPP-MM-LKRVA-2023/1-0001), implemented under the national research programme “Latvian Culture – a Resource for National Development”. The project is funded by the Ministry of Culture of the Republic of Latvia within the national research programme “Latvian Culture – a Resource for National Development” (2023–2026). The national research programme is administered by the Latvian Council of Science.
