Latvian Academy of Culture Research Highlights the Role of the Design Economy in Latvia's Economy
Design in Latvia is a significant driver of competitiveness, innovation, and productivity in the national economy, extending beyond the traditional understanding of aesthetics and the visual appearance of products. This is demonstrated by the research report "Identifying the Design Economy and Its Significance in the Latvian Economy" prepared by researchers from the Institute of Arts and Cultural Studies at the Latvian Academy of Culture (LAC).
Given that the concept of the design economy has not previously been used in Latvia, while earlier studies have focused primarily 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 developed, at the initiative of the Ministry of Culture, within the framework of the National Research Programme project "Cultural and creative ecosystem of Latvia as a resource of resilience and sustainability" / CERS.
"Design is an important component of Latvia's economy, although it often goes unnoticed by society. Therefore, the study focuses specifically on the design economy, which makes it possible to encompass a wide range of services, digital solutions, process organisation, and development directions – in other words, the creation of added value," emphasises LAC researcher Ieva Zemīte.
The study findings, based on an analysis of statistical data from the Central Statistical Bureau of Latvia, show that the design economy accounts for approximately one tenth of Latvia's economic activity and represents the largest segment of the creative economy. On average, 70% of all economically active enterprises in the creative economy are related to the design economy. Furthermore, design skills are applied across almost all sectors of the national economy. According to data provided by the State Revenue Service, more than 60,000 people were employed in occupations requiring design skills in Latvia in 2023.
The study analyses the development of the design economy in Latvia between 2013 and 2023. During this period, the number of economically active enterprises in the design economy increased by 44%, employment grew by 30%, turnover rose by 123%, while value added increased by 186%. These indicators demonstrate that the design economy is one of the fastest-growing areas of the creative economy, generating high added value.
The authors of the study point out that the importance of the design economy continues to expand, as design approaches are increasingly applied across various sectors of the national economy, including information technologies, manufacturing, healthcare, education, financial services, and many others. The ability to understand users' needs, develop new solutions, and improve processes makes design one of the most important instruments of innovation.
A significant outcome of the study is the methodology developed for identifying the design economy in Latvia. In cooperation with the Latvian Design Council and drawing on internationally recognised approaches, the researchers identified 72 NACE Rev. 2 economic activity codes characterising the design economy and analysed occupations in which design skills are applied. This provides a foundation 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 Significance in the Latvian Economy" was prepared by a research team consisting of Ieva Zemīte and Baiba Tjarve (Latvian Academy of Culture) and Ilze Judrupa (Riga Technical University).
The report was developed within the National Research Programme "Latvian Culture – A Resource for National Development" as part of the project "Cultural and creative ecosystem of Latvia as a resource of resilience and sustainability" / CERS (No. VPP-MM-LKRVA-2023/1-0001). The project is funded by the Ministry of Culture of the Republic of Latvia within the framework of 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.
Design and publicity image credit: Kristīna Virse (images from Pexels.com).
For further information:
Ieva Zemīte, Latvian Academy of Culture
ieva.zemite@lka.edu.lv | +371 20286296