Every Euro Invested in the Space Sector Returns Added Value – Latvia’s Benefits from Participation in the European Space Agency

Author
Ministry of Education and Science | researchLatvia

November 24, 2025

Since 2020, Latvia’s participation in the European Space Agency (ESA) programmes has become a significant investment in the country’s economy. This involvement strengthens national scientific and innovation capacity, fosters the development of new technologies, and generates solutions that increasingly find their way into everyday life.

ESA Oxford Economics vizuālis.png
Source: Copernicus (Copernicus Programme).

It enables Latvia to consolidate its position within the European research and high-technology landscape, enhancing the country’s competitiveness and supporting the sustainable growth of knowledge-intensive sectors.

This impact is confirmed by an economic assessment commissioned by the Ministry of Education and Science (MES) and conducted by Oxford Economics – an internationally recognised economic analysis and consulting company. According to the study, the implementation of ESA projects in Latvia has generated a total contribution of EUR 13.4 million to GDP, including:

  • EUR 9.4 million – direct contribution from project activities;

  • EUR 1.8 million – supply-chain effects;

  • EUR 2.2 million – economic activity generated through household consumption.

For every euro invested in ESA programmes, EUR 1.4 is returned to Latvia’s economy.

Minister of Education and Science Dace Melbārde: “Latvia’s participation in the European Space Agency is a strategic investment in the country’s development. It strengthens scientific and innovation potential, promotes cooperation between research and industry, and helps Latvian scientists gain visibility in Europe and worldwide. Participation in ESA also opens new opportunities for companies in high-technology fields. Every euro invested in the space sector returns added value – both in knowledge and competences, and in economic growth.”

Between 2021 and June 2025, Latvian organisations received EUR 12.1 million in ESA programme funding, supporting the implementation of 73 projects. More than 80% of this funding was allocated to research and development, fostering the creation of new technologies and innovations.

ESA activities in Latvia have generated 185 job-years, including 115 directly in projects and 70 indirectly through supply chains and related sectors. This means that every 100 direct job-years generate a total of 160 job-years for the Latvian economy. Notably, 58% of employees in the sector hold a master’s or doctoral degree, reflecting the high qualification level within the space industry and its contribution to knowledge-intensive development.

By July 2025, Latvian companies had also secured EUR 15 million in commercial contracts outside ESA, demonstrating the sector’s international competitiveness and growth potential.

The Ministry of Education and Science is the institution responsible for Latvia’s participation in the European Space Agency, coordinating national space policy and international cooperation in this field.

Latvia has been an ESA Associate Member State since 2020. The Ministry continues its work to ensure Latvia’s active participation in the next ESA cooperation period from 2027 to 2034.

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