STIMULATION OF INNOVATIONS:CASE OF THE LATVIAN IT CLUSTER

This paper is based on assumption that innovation and competitiveness can be facilitated by clusters. The cluster approach has certain advantages which could be explored by firms looking for increased growth, competitiveness and innovation. The analysis of the Latvian Information Technology cluster shows that it has developed a platform for increasing competitiveness and innovation capacity for IT firms, and it helps to draw conclusions for further improvement of cluster and individual company performance.