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Research on intellectual capital (IC), while realizing the fact the investments or spending on IC that can either create or destroy value, during the last decade has changed the focus from analysis of companies IC meta system to analysis of ecosystem and company as part of framework. Intellectual capital (IC) analysis that as an academic discipline has evolved and exceled since early 90's has reached the fourth stage of the research. Purpose of the study: Investigate the level of relationship between intellectual capital and its components and sales / growth rate and profitability of the companies; identifies dominating significant constituents in NASDAQ Baltic companies. Tasks: a) to identify intellectual capital and business performance ratios for the analysis, b) choose normalisations proxies, set number of control and moderate variables and period of impact to evaluate. Primary research methods: panel time-series sample of 92 companies and a 6-year observation of companies listed on the Baltic Stock Exchange between 2013 and 2019. This article contributes to the development of Intellectual Capital Theory, Value-Based Management Theory and Resource-View Theory. Elaborating on the analysis of the financial statements, as audited and public data, thorough analysis of the companies' intellectual capital and its components has been undertaken improving the methodology of the evaluation of the impact, identifying research gaps and expanding the theoretical impact models. This study reveals a significant and positive relationship between Intellectual Capital and its components and sales / growth rate and profitability of the companies; identifies dominating significant constituents in NASDAQ Baltic companies. Expanding number of IC components, number of control and moderate variables and, crucially, testing for approbation of normalization proxies and adjusting IC components for value added or assets, provides thorough and accurate analysis of the impact.
Key words: Intellectual capital; extended impact models.

The research was supported by the NATIONAL RESEARCH PROGRAMME "LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE" project "CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005). ; The use of different kind of social media by local governments has gained relevance in recent years, however, along with many opportunities and successes, the use of social media by local governments has many challenges, barriers and issues which are not enough researched and discussed in academic research. Purpose of the study is to analyse benefits and challenges of social media use in municipalities in Latvia. Research methods used in preparation of the paper: recent scientific publication studies, analysis of social media of municipalities of Latvia, survey on social media use in municipalities in Latvia realized on April 2021. For data analysis there were used indicators of descriptive statistics: indicators of central tendency or location (arithmetic mean, mode, median, quartiles), indicators of variability (variance, standard deviation, standard error of mean), cross – tabulations, statistical tests of hypotheses and analysis of variance (ANOVA). The results show that most municipalities generally have positive views of their social media use but the real application of social media is not consistent in each municipality. Although majority of municipalities use at least two social media, the study found important challenges in terms of reginal development, digital skills, appropriate employees and social media content. ; INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005

The research was supported by the NATIONAL RESEARCH PROGRAMME "LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE" project "CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005). ; Use of the social media in local governments has expanded around the world on the basis of development of internet and technology. Although each social network offers substantial benefits and opportunities, not all local governments use them or do not use them efficiently enough. Most local governments in Latvia use social media un do it for variety of reasons, but studies on the factors that promote the creation and maintenance of social network accounts in local governments in Latvia remains scant. The aim of the study is to analyse factors that promote social media use in local governments in Latvia and make proposals to policy makers. In order to achieve the purpose, the tasks are formulated as follows: 1. to review theoretical background of social media use in local governments; 2. to review existing research of social media use in local governments; 3. to analyse factors that can promote social media use in local governments in Latvia. Research methods used in preparation of the paper: recent scientific publication studies, analysis of social media of municipalities of Latvia, survey on social media use in municipalities in Latvia realized on April 2021. For data analysis there were used indicators of descriptive statistics: indicators of central tendency or location (arithmetic mean, mode, median, quartiles), indicators of variability (variance, standard deviation, standard error of mean), cross – tabulations. The results show that most local governments generally have positive views of their social media use but the real application of social media is not consistent in each local government. Majority of local governments in Latvia use at least two social media and one of them is Facebook. The results of the research can ...

Regular and proportionate voluntary savings in private pension funds can become an important part of oldage pensions. However, this can happen if the savings are made for a long period of time. This justifies the target group of the 3rd pension level, which are young people who have started to receive a regular income from their professional activity. One of the most discussed issues in promoting voluntary pension savings is the level of financial literacy. In addition to other motivating factors, such as financial incentives, the level of knowledge of the population about the opportunities to participate in the third pillar of pensions makes them want to build up voluntary savings. Effective communication of information to a precise target audience is one of the main tasks of government agencies in formulating pension policy. In order to assess the impact of various socio-economic factors on young people's knowledge of savings for pension formation, a survey of Latvian youth was conducted in February-March 2021, addressing youth organizations and universities. The survey is designed using closed and semi-closed questions, in several questions respondents were asked to provide ratings using the Likert scale. The survey provides answers to the question about the level of knowledge of Latvian youth about the current pension system, emphasizing the investor's right to handle investments in private pension funds, as well as the basic conditions for creating savings at the 2nd and 3rd pension levels. The task of the study was to analyze the respondents' financial literacy self-evaluation answers based on the main socio-economic factors - gender, age and income. The results of the study confirm that the level of financial literacy of young people differs according to age, gender and income level.

Regular and proportionate voluntary savings in private pension funds can become an important part of oldage pensions. However, this can happen if the savings are made for a long period of time. This justifies the target group of the 3rd pension level, which are young people who have started to receive a regular income from their professional activity. One of the most discussed issues in promoting voluntary pension savings is the level of financial literacy. In addition to other motivating factors, such as financial incentives, the level of knowledge of the population about the opportunities to participate in the third pillar of pensions makes them want to build up voluntary savings. Effective communication of information to a precise target audience is one of the main tasks of government agencies in formulating pension policy. In order to assess the impact of various socio-economic factors on young people's knowledge of savings for pension formation, a survey of Latvian youth was conducted in February-March 2021, addressing youth organizations and universities. The survey is designed using closed and semi-closed questions, in several questions respondents were asked to provide ratings using the Likert scale. The survey provides answers to the question about the level of knowledge of Latvian youth about the current pension system, emphasizing the investor's right to handle investments in private pension funds, as well as the basic conditions for creating savings at the 2nd and 3rd pension levels. The task of the study was to analyze the respondents' financial literacy self-evaluation answers based on the main socio-economic factors - gender, age and income. The results of the study confirm that the level of financial literacy of young people differs according to age, gender and income level.

The main objective of the improvements to public pension systems is to create a balanced three-pillar pension structure and increase public accountability for pension capital formation. Most pension systems are based on the first two pension system pillars – mandatory contributions in the state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds. However, the pension level adequacy has been reached by adding the third pension system pillar - voluntary investments in private pension funds. Governments are private pension system policymakers by defining a legal framework and providing tax incentives for voluntary investments for retirement. In the Baltic countries – Estonia, Latvia, and Lithuania, the third pension pillar is at an early stage of its development, and as such, should be particularly stimulated. This research focuses on the tax incentives utilized by the governments of Estonia, Latvia, and Lithuania and aims to ascertain and compare the effectiveness of the tax incentive policies applied to the third pension pillar by the governments of the three Baltic countries. It questions the effectiveness of the incentive mechanisms the governments of the Baltic countries have chosen, which include involving most of the population in the private pension saving programs. The research methods used are the analysis of scientific publications on the previously conducted research, acts of legislation of Baltic countries, as well as an analytical study of statistical data on the development of voluntary pension fund contributions in Estonia, Latvia, and Lithuania. The research results indicate that the tax incentives are the mechanism to motivate the population to create savings in the third pension pillar in all three Baltic countries. However, Latvia being the country with the highest coverage rate of the third pension pillar has the most unfavorable conditions for creating savings. There are no tax incentives on returns on investment and tax-exempt withdrawals in Latvia, while Estonia and Lithuania have all positions tax-exempt. A more detailed analysis of the tax incentives at the contribution stage explains the underdeveloped third pension pillar in Lithuania, as Lithuanian personal income tax reliefs are targeted at low or medium wages or gross income. The research has highlighted the impact of tax incentives on voluntary savings for retirement in the three Baltic countries, opening a discussion about the effectiveness of governments' applied mechanisms.

In developed countries there is a valuable experience how to include people with disabilities into society: involve in several activities and let them know as people valuable for the society. More and more academic research is devoted to those aspects as well as public policy is developed to create and support social entrepreneurship. Aim of the paper is to analyse findings and good practice of employment of people with mental disabilities in several countries and analyse the situation and possible developments on employment of people with mental disabilities in Latvia. Tasks of research: 1) analyse results of academic findings on good practice and challenges in employment of people with mental disabilities wold-wide; 2) analyse the developments and trends on employment of people with mental disabilities in Latvia; 3) propose possible development scenarios on employment of people with mental disabilities in Latvia. Research methods used in research: scientific publications analysis; analysis of legislative documents on employment of people with mental disabilities, analysis of statistical data on employment of people with mental disabilities. Research results have shown that in recent years many important steps in employment of people with mental disabilities in Latvia has been reached but there are some difficulties in realise of sustainability in this aspect.

Household financial hardship have been a rising concern of scholars and policy makers since income inequality in Latvia is very high and more than 23% of citizens are on risk of poverty, because housing costs typically represent the largest monthly expense for households. Special concern is about regions of Latvia where the level of living is lower than in cities and financial burden problem is increasing. The aim of the study is to analyse financial burden of housing costs in regions of Latvia. Research methods used in preparation of the paper: scientific publication and previous conducted research results analysis, analysis of EU-SILC results and European Central Bank conducted survey on Household income and expenses survey results, results are compared with the results of other EU countries. Survey results are analysed using indicators of descriptive statistics, cross-tabulations for regions of Latvia, for territories: urban-rural living and analysis of variance – ANOVA, for analysing financial burden of housing costs by regions and correlation analysis to analyse relationship of financial burden of housing costs and household composition are used. The results of analysis have indicated that situation in regions of Latvia in the context of housing conditions is very different and that there are very big challenges for decision makers to find recently the best possible solution.

Pension system formation is one of the questions on the daily agenda for most countries of the world. Most attention and discussion focus on the first two pension system pillars – state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds, both based on mandatory contributions. Private voluntary investments are the "third pillar" of pension systems and the gear to ensure an adequate level of income at retirement age by creating private pension funds. Voluntary savings are becoming the source of retirement income received on a monthly basis in line with the progress of private pension funds and expansion of the choice of pension schemes. This research task is to evaluate the 3rd pension pillar's current results in Latvia and create a comparison with Lithuania and Estonia. The research outlines the common and the differences between engagement in financial future planning decisions of the population in Baltic States and existing legislative frameworks to promote the formation of private pension funds. It rises the research question on the importance of the role of voluntary savings in each country as well as gives recommendations for further voluntary savings advancement. Research methods used are the analysis of scientific publications, acts of legislation and previously conducted research, analysis of statistical data on the development of voluntary pension fund contributions in Latvia and comparison with Lithuania and Estonia.

Governments work hard to make their district a better place to live, sometimes when society does not recognize what has been done and it indicates the real issue – information asymmetry. To improve information flow between government and society as well as active social change it is possible to use macro-social marketing. In a few cases, it is already happening but there are many more where it could be used by the government. Problem statement – there is information asymmetry between government and society, that reflects on the social development of the country on a macro-level. Aim – to investigate macro-social marketing and its ability to improve the communication flow between government and society while making a positive impact on society. Main research methods used – scientific publications and previous conducted research analysis, for empirical part a quantitative non-parametric method for statistical. The authors study macro-social marketing and its implementation of good practice, CSDD, in Latvia. First, it is important to get a common understanding of what macro-social marketing is and how it differs from micro social or social marketing. Second, macro-social marketing is already in use but not always governments are aware that they are using it, so authors will stimulate awareness by mentioning successful cases where macro-social marketing has been used in addition by doing one in-depth case study of a Latvian government organization called CSDD that is responsible for road traffic security in Latvia. In the end, there will be available main conclusions, proposals, and recommendations for the Latvian government that can be used to positively influence society as well as other stakeholders. Main results and findings of the paper – the article provides new information about macro-social marketing and its ability to make a positive impact on society if used right by the Latvian government and public institutions. Analyze macro-social marketing Latvia CSDD case; make conclusions about macro-social marketing and assemble recommendations for Latvian government. Overall, the article answers do macro-social marketing is a way for the government to make a positive influence on society.

Innovation–it is a term that we use for decades, but true meaning of this term changes also for decades, according to dynamic environment we are living in. There is now beginning of the4thindustrial revolution and what has been said in World Economic forum, issues are not about technologies anymore, they are about society. Innovation and entrepreneurship in regions is one of essential tools, in added value creation in economics and in development in national level. It is very important to encourage creativity, new ways of thinking and continuous process of learning of individuals. Aim of the current paper is to investigate development of application of innovations evaluated internationally for the country by GCI and reflect the entrepreneur's opinions for innovation applications aspects. Research methods applied: scientific publications and previous conducted research results analysis, analysis of development of reflection innovation aspect in GCI, analysis of strategic planning documents and guidelines of EU and Latvia and survey of inhabitants of local community survey of entrepreneurs of Kurzeme region in Latvia on their opinion about participation in the processes to make changes in development of region and local community. There are some different approaches how to measure competitiveness of state economy and competitiveness in regional level. Statistical data shows situation from point of view in national level, Regional level and local community level have to be researched detailed, and every situation, which can make impact on level above, have to be taken into account. Main results were related with issue, that tenants of region at very low level evaluate impact of state as institution and management system in national level, better evaluation of local government institutions, but at the same time there is lack of desire to participate actively in processes of local community to encourage changes in regional level. ; The research was supported by the NATIONAL RESEARCH PROGRAMME "LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE" project "CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005)

The main objective of the improvements to public pension systems is to create a balanced three-pillar pension structure and increase public accountability for pension capital formation. Most pension systems are based on the first two pension system pillars – mandatory contributions in the state compulsory unfunded pension scheme and the state-funded or accumulated pension scheme in pension funds. However, the pension level adequacy has been reached by adding the third pension system pillar - voluntary investments in private pension funds. Governments are private pension system policymakers by defining a legal framework and providing tax incentives for voluntary investments for retirement. In the Baltic countries – Estonia, Latvia, and Lithuania, the third pension pillar is at an early stage of its development, and as such, should be particularly stimulated. This research focuses on the tax incentives utilized by the governments of Estonia, Latvia, and Lithuania and aims to ascertain and compare the effectiveness of the tax incentive policies applied to the third pension pillar by the governments of the three Baltic countries. It questions the effectiveness of the incentive mechanisms the governments of the Baltic countries have chosen, which include involving most of the population in the private pension saving programs. The research methods used are the analysis of scientific publications on the previously conducted research, acts of legislation of Baltic countries, as well as an analytical study of statistical data on the development of voluntary pension fund contributions in Estonia, Latvia, and Lithuania. The research results indicate that the tax incentives are the mechanism to motivate the population to create savings in the third pension pillar in all three Baltic countries. However, Latvia being the country with the highest coverage rate of the third pension pillar has the most unfavorable conditions for creating savings. There are no tax incentives on returns on investment and tax-exempt withdrawals in ...

Innovation – it is a term that we use for decades, but true meaning of this term changes also for decades, according to dynamic environment we are living in. There is now beginning of the 4th industrial revolution and what has been said in World Economic forum, issues are not about technologies anymore, they are about society. Innovation and entrepreneurship in regions is one of essential tools, in added value creation in economics and in development in national level. It is very important to encourage creativity, new ways of thinking and continuous process of learning of individuals. There are some different approaches how to measure competitiveness of state economy and competitiveness in regional level. Statistical data shows situation from point of view in national level, Regional level and local community level have to be researched detailed, and every situation, which can make impact on level above, have to be taken into account. Research methods, used for these studies were analysis of scientific papers, strategic planning documents and guidelines of EU and Latvia and survey of inhabitants of local community what are their opinion about participation in the processes to make changes in development of region and local community. Main results were related with issue, that tenants of region at very low level evaluate impact of state as institution and management system in national level, better evaluation of local government institutions, but at the same time there is lack of desire to participate actively in processes of local community to encourage changes in regional level. Key words: innovation, regional development.

Product recycling opportunities that potentially increase the value of the initial product create interest in creating and developing a field. Seafood is demanded product in the world but creating a higher value of the product the value of it can be increased and in many countries it helped to solve social problems with food provision and employment. Aim of research analysis of area for mollusc farming, and mollusc-processing options to explore opportunities for development of the field. By analysing views of public administrators, entrepreneurs and researchers in selected Baltic Sea Region countries. Based on expert viewpoint (public administrators, entrepreneurs and researchers that participated in the survey), the study summarizes aspects of seafood re-processing that may affect the potential for shellfish development in the Baltic Sea region and whether educational measures can contribute to the development of processed seafood in the Baltic Sea Region. Research methods used: Scientific publication studies on mussel farming development and marine product processing supporting and braking factors, survey of different stakeholders in mussel farming – public administrators, entrepreneurs and researchers; expert interviews. For evaluation of different aspects affecting marine product processing from mussel farming evaluation scale 1 – 10 was used, where 1 – do not affect; 10 – affect in great extent. Data obtained in the survey were analysed with indicators of descriptive statistics, cross-tabulations by gender, education level, age group and country, analysis of variance – ANOVA, correlation analysis, and factor analysis. From the experts' point of view, the important aspects that could affect the processing of marine products in mussel farming in the Baltic Sea region were indicated as government support, education including informal education, human resources as well as marketing events. The results were statistically different by age group and by country. Experts who evaluated aspects of education as a less important factor affecting the development of marine product processing rated the development potential of marine product processing over the next 10 years lower.