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A detailed investigation of higher education’s contribution to economic   performance and innovativeness in Latvia is necessary because of   contradictory facts in the socio-economic reality of Latvian higher   education. Despite the fact that investment in the Latvian higher education   system results in high participation, the economic and innovation returns,   i.e., the profitability of the resulting highly educated labour force, are   low. The analysis of the literature has shown that there are other factors   that determine higher education’s contribution to economic performance and   innovativeness and enable highly skilled specialists to potentially turn   their knowledge into innovation and national income; e.g., the quality of   higher education and the level of technological development in business. We   conducted an empirical analysis of a set of indicators that are potentially   significant to economic performance and innovativeness, and concluded that,   first, higher education’s contribution to economic performance and   innovativeness differs depending on the stage of the country’s economic   development; and second, that a country’s ability to attract and retain   talented people becomes more significant at each stage of economic   development. In Latvia both the ability to attract and retain talented people   and the level of technological development are poorly developed, which   results in low economic and innovative returns from a relatively large number   of highly skilled specialists

Higher education’s contribution to economic performance and innovativeness in Latvia: Exploratory research