By Financial Times
BAKU, Azerbaijan, July 1. Latvia’s Foreign
Minister Baiba Braže praised the country’s business community and
innovation sector in remarks made yesterday, noting international
recognition of Latvia’s achievements in emerging technologies such
as quantum computing, ICT, and drone technology, Trend reports.
“It is a privilege of my role to regularly engage with our
entrepreneurs, learn about their breakthroughs, and test their
innovations firsthand,” said Braže.
Throughout her official visits and participation in
international conferences and forums, Braže frequently met with
foreign politicians, investors, and business leaders to promote
Latvia’s economic ties. She noted that Latvia’s technological
advances are consistently met with interest and respect abroad.
Latvia’s evolving geopolitical context has stimulated the growth
of its national defense industry, particularly in drone
technologies. One of Latvia’s unique advantages, according to
Braže, is its ample space and capacity for testing next-generation
technologies, which has drawn manufacturers from allied countries
to trial their drones in Latvia. The nation’s success in quantum
technologies is also noteworthy, with algorithms developed by
Latvian professors forming the basis of roughly 20 percent of the
world’s quantum algorithms. “We are a ‘small quantum superpower,’”
she emphasized.
Recent reports confirmed that Latvia has made significant
progress in attracting foreign investment. According to the 2025
edition of Ernst & Young’s European Attractiveness Survey, Latvia
led the Baltics in foreign direct investment (FDI) last year, with
33 new FDI projects launched, up 50 percent from 2023. These
projects generated 1,937 new jobs, a 53 percent increase from the
prior year. This marked Latvia’s best performance in both
categories in the past three years.
The Foreign Investors’ Council in Latvia (FICIL) reported a
sharp rise in Latvia’s investment appeal, from 1.9 to 3.0 on a
5-point scale. FICIL praised the Latvian government’s efforts to
bolster the defense sector and maintain stability amid ongoing
geopolitical uncertainty. The total stock of FDI in Latvia reached
26.3 billion euros at the end of 2024—1.4 billion euros more than
the previous year, and about 50 percent of surveyed investors
planned to continue investing in Latvia.
Despite these achievements, investors noted that Latvia suffers
from an overly modest self-perception. “Many investors pointed to
Latvia’s strong fundamentals—excellent infrastructure, engineering
talent, and a democratic, open society—but also warned of excessive
self-criticism and media negativity,” the FICIL report said. A
mindset shift toward future vision and national confidence was
strongly encouraged.
The Baltic states as a whole were described as “too modest”
about their achievements. Latvia’s leadership in digital government
services, Lithuania’s thriving fintech sector, and Estonia’s
e-governance prowess were often more recognized abroad than at
home. “The Baltics need to project pride and vision to inspire both
their citizens and foreign investors,” the report concluded.
Latvia’s capital, Riga, was again named one of Europe’s top
investment destinations by Financial Times, earning two awards in
its 2025 “Cities and Regions of the Future” rankings.
Defense sector progress also earned praise from international
partners. During joint Baltic foreign minister visits abroad,
allies—including U.S. Secretary of State Marco Rubio and Secretary
of Defense Pete Hegseth—commended Latvia and its neighbors for
their defense investments, commitment to NATO, and support for
Ukraine. Hegseth even called the Baltics “model allies.”
Latvia’s advancements in drone technology were particularly
emphasized. The country co-leads the International Drone Coalition
alongside the United Kingdom, an initiative now comprising 18
member states. Latvian drone manufacturers like Edge Autonomy and
Origin Robotics have secured significant international investment
and contracts.
Edge Autonomy, headquartered in the U.S. with a major production
hub in Latvia, saw its revenue quadruple to nearly 80 million euros
in 2023. Its profits rose over sixfold, reaching 29 million euros.
The company recently entered a $925 million acquisition deal with
U.S. space firm Redwire, signaling Latvia’s growing integration
into global aerospace and defense supply chains.
Origin Robotics, a Latvian defense tech startup, received 4.5
million euros in funding from the European Defence Fund to develop
a new portable UAV with laser targeting. It also secured 4 million
euros in pre-seed investments and began exporting BEAK drone
systems to the Netherlands.
Other prominent Latvian players include:
SPH Engineering: UAV control software used in 200+ countries
VIC TEC: Naval unmanned surface vehicles, presented at
Eurosatory 2024
SUBmerge Baltic: Autonomous underwater drones with 7-day
operation capacity
LMT: Military 5G testing site and NATO research
collaboration
Natrix, Belss (Eraser), NEWT21, and Frankenburg Technologies:
Various innovations in robotics, drone warfare, and missile
Latvia’s broader tech ecosystem also saw global success:
Aerones raised $62 million in funding and 4.4 million euros in
EU grants for robotic wind turbine maintenance
Longenesis, a healthtech startup, won the “Expand North Star
2024” competition in Dubai
LMT and LVR Flote won a sustainability award for Baltic Sea 5G
connectivity
Neamo, a student-founded environmental health startup, won
multiple EU innovation prizes
Quantum technology was another standout field. Latvia remains
the only Baltic state with a national quantum-secure communication
network. Algorithms developed by University of Latvia professors
Andris Ambainis and Aleksandrs Belov account for one-fifth of
global quantum algorithms. Professors Mārcis Auziņš and Jurģis
Poriņš were also noted for their contributions to quantum sensing
and secure communication, respectively.
In 2024, Latvia led Europe in QuantumERA projects per capita,
reflecting its strong R&D performance relative to GDP.
Latvia’s continued global recognition in defense tech, quantum
innovation, and digital infrastructure has cemented its reputation
as a high-tech hub in Northern Europe, poised for further