Country Profile: Estonia

Private Sector Interaction in the Decision Making Processes of Public Research Policies Country Profile: Estonia

1. Political, institutional and economic framework and important actors Until 2000, the total R&D expenditure in Estonia has been around 0.6% of GDP 1. Subse- quently it grew from 0.73% in 2001 to 0.91% in 20042, representing the biggest increase (in nominal terms) in the EU to reach the third highest level among New Member countries. The amount of state subsidies to the horizontal objective of R&D remains quite limited. In 2004 this was 21 % of total state aid for horizontal objectives 3. Thus it is not surprising that according to the Estonian CIS, in 1998-2000 only 4,9 % (2002-2004 4 %) of innovative enterprises had received financial support from the government 4 According to the state aid scoreboard, the number was somewhat higher in the years 2002-2003, when 20.6 % of innovative SME’s (firms employing 10-499 employees) reported the use of at least one form of public support 5. The guidelines for technology and innovation support are set out in different governmental documents, some of them less successful, as the Estonian Innovation Programme (1998), or the National Development Plan (2000-2002) and some of them more important, like the R&D strategy Knowledge-based Estonia 2002-2006 or the Act on Organisation of Research and Development (1997). The latter aims at reaching a better balance between basic research and applied R&D by increasing the share of R&D and by encouraging the application of research results in enterprises as well as in society as a whole. 6 Figure 1 depicts the structure of the Estonian Research and Innovation System and its actors.

Political Parliament Research and Science Public Private Sector Government Development Competence Authorities (RIIGIKOGU) Council (RDC) Council (SCC) Sector

Ministry of Ministry of Research Policy Economic Affairs Education and Committee & Communica- Other Ministries Private Sector Administrative Science (MER) tions (MEAC) Associations Bodies Estonian Science Innovation Policy Enterprise Estonian Estonian Foundation Committee Estonia Employers’ Chamber of (ESF) (EE) Confederation Commerce & (ETTK) Industry (ECCI)

Association of Estonian Tallinn Technical Estonian Sectoral Tartu University University’s Innovation Centre SMEs (EVEA) associations Academy of Institute of Development of TTU Sciences Technology Centre Private Sector Intermediary Tartu Science Archimedes organisations Park Foundation actors SMEs Tartu University’s Centre of Tallinn Large firms Private Strategic Technology research Competence Park MNC’s laboratories Enterprises Independent Research Research Research International performers Universities Institutes research

Figure 1: Structure of the Estonian Research and Innovation System

1 Masso 2004 2 EUROSTAT, ec.europa.eu/comm/eurostat 3 State Aid Scoreboard 2004. 4 See also in: Kurik et al. 2002 and Ettevõtete innovatsiooniuuringu…2006. 5 Arundel 2004. 6 Teadmistepõhine Eesti… 2001.

Page 1 of 17 Country Profile: Estonia a. Political and governmental authorities In the Estonian public research policy making process, the Estonian Parliament , the Gov- ernment and the Research and Development Council are the main actors. The highest level of political decisions of RDTI funding is made by the Government and agreed upon by the Parliament. The Prime Minister yearly presents to the parliament an overview of the R&D situation and of the government policy in this field. The Government develops national R&D policy basically with the help of two main advisory bodies: the Research and Development Council (RDC) and the Science Competence Council (SCC). Since 2002, the RDC has had 12 members including 4 ministers, 4 academicians and 4 representatives of the Private Sec- tor (industry). It is purely an advisory body (the decisions are made thereafter by the government of Estonia), whose role has included advising the government on R&D strategy, expressing opinions on the national R&D programs, annual reporting on the R&D in Estonia, advising government in the process of preparation of the draft state budget. Therefore it contributed to the development of Estonian research and innovation system and to the growing importance of R&D&I issues after its less successful operation before 2000 which resulted in the 2002 reorganisation of the Council (e.g. cutting the number of members). According to the strategy document (still not officially accepted) Eesti edu 2014 (The Success of Estonia 2014), RDC should achieve the consensus and coordinated actions of state, entrepreneurs and the scientists. The Science Competence Council is an advisory board to the Minister of Education and Re- search, which makes suggestions on the allocation of targeted financing of research topics in R&D institutions, proposals for the approval of R&D evaluation, proposals on covering the infrastructure expenses of R&D institutions, and financing of PhD studies. The government establishes its action plans and approves its membership. The SCC consists of 9 reputable scientists approved by the government based on the proposal of the Ministry of Education and Research. However, there are no representatives from the industry, which has at times been seen as a problem. SCC and Estonian Science Foundation (ESF) predominantly orientated towards basic research. The funding criteria are the quality of research (novelty and originality of the proposed research, publications, especially in reputable journals, involvement of graduate students etc.). There are no explicit instruments to encourage interactions with society or industry. Policy preparation and management functions are mainly fulfilled by the Ministry of Economic Affairs and Communications (MEAC) and the Ministry of Education and Research (MER) with its expert bodies, the Academy of Sciences and the Science Competence Council SCC and its advisory committees: the Research Policy Committee and the Innovation Policy Committee . Research Policy Committee includes members from ministries, universities and the Private Sector to advise MEAC and to design research policy and strategies. The Minis- try of Economic Affairs and Communications implements innovation policy, including the financing of applied research, development and innovation (through its institutions under En- terprise Estonia), and coordinates and organises the international cooperation in the field of technology. Additionally, the Ministry of Finance as a financial authority and other ministries in their responsibility for specific sectors are involved in research policy preparation and management functions. b. Intermediate bodies Policy financing functions are fulfilled by Enterprise Estonia (with its sub-division Estonian Technology Agency (hereinafter ESTAG, until 2001 known as the Estonian Innovation Foun- dation), and by the Estonian Science Foundation (ESF). The financing of higher education is channelled through the MER together with the Science Competence Council . Smaller bridging and supporting institutions include science and technology parks, innovation and competence centres and business incubators. Target organisations of the system include firms and

Page 2 of 17 Country Profile: Estonia

Public or Private Sector R&D units. Public universities and research organisations can be considered also as support units to firms. 7 The Estonian Science Foundation (ESF) provides support for the most promising research activities in Estonia. It was established by the Estonian Government in 1990 as an expert research funding organisation. Based on peer-reviews, it awards (comparatively small) research grants to individuals and research groups on a competitive basis using a time- consuming and strict application procedure. Its highest decision-making body, the council, is made up of 15 scientists (there are no representatives of industry); its 8 expert commissions on different areas of science rank the applications in their areas. It has a strong science orientation and thus holding an ESF grant is for example an important criterion for researchers in (re)election for academic positions. An independent foundation created by the MER is the Archimedes Foundation , whose aim has been to prepare the Estonian education and research systems for cooperation with European organizations. It serves as an intermediary for EU research, innovation, educa- tional programmes and supports the mobility of students, researchers and lecturers. c. Research performing institutions Research is performed by the universities, their subsidiary research institutions and by research institutions which are not associated with universities. The Estonian Academy of Sci- ences does not undertake research itself, though some research institutions are associated with the Academy. d. Private Sector The share of innovative enterprises is 36% in Estonia, however most of the innovations are rather incremental than radical. 8 A relatively higher level of innovations was identified in the service sectors (ICT, banking, air transportation). In manufacturing, SME’s spend relatively more on innovation expenses than large enterprises do; however, larger companies produce relatively more innovations. Both domestic and foreign market oriented firms innovate to the same extent. The traditional firms dominant in Estonia do not innovate through R&D but through other means. Innovation is rather driven by partners - suppliers, customers, but also by foreign investors through their parent companies. Private Sector involvement is initiated not only by the Private Sector, but (even more fre- quently) by policy makers and R&D institutions, like in the Commissions of Innovation Policy and Research Policy or in the Research and Development Council. The national strategy document The Success of Estonia 2014 states at several occasions the importance of involv- ing the Private Sector in public research, education and innovation policy-making, including funding, targeting and cooperation activities. But overall, the Private Sector involvement in the general R&D policy system is currently rather low and passive. Consequently, the share of Private Sector funding of total R&D expenditures is also still low. In the future, the involvement of the Private Sector in public research policy decision making can be expected to increase, firstly because of the rising level of entrepreneurship culture and secondly, because of public (including EU) support measures. The Chamber of Commerce and Industry represents its member firms by consolidating and expressing their positions regarding drafts of R&D-related laws vis-à-vis ministries and government. But so far emphasis has been on other issues, e.g. vocational education system, while R&D policy has not especially been targeted. In 2004, the main fields of action in R&D were the implementation of the initiatives of the European Parliament, the European Com- mission and the Council of the EU Presidency, as well as the assessment of the position of the relevant Estonian firms. The Association of Small and Medium Enterprises (EVEA) is similarly involved in research policy, as are other industry associations, which in some cases

7 See Hernesniemi (2000). pp.21–26 8 (Kurik et al . 2002) These numbers are based on the Community Innovation Survey (CIS) data for years 1998-2000. The CIS data for years 2002-2004 is available as of March 2006.

Page 3 of 17 Country Profile: Estonia have even special boards dedicated to R&D policy issues. Currently, various predominantly EU-initiated support measures for R&D policy are discussed within different associations in order to set out common positions.

2. National research policy decisions and Private Sector involvement Instigation and design stages Current participation of the Private Sector and its enterprises in the design, implementation and assessment of research and innovation policies is very limited. Firstly, there is a lack of Public Sector initiative and mechanisms, and secondly, in Estonia, the term ’innovation’ is rather mystified, not seen as an integral part of businesses. Hence entrepreneurs perceive themselves often as being ‘down-to-earth’ and profit-oriented and do not consider innovation as a field for action. There are some rather uncommon examples of Private Sector involvement in formal decision processes, which are mostly Private Sector involvement in supervisory boards (e.g. in the case of Enterprise Estonia or in the Research and Development Council). The participation of the Private Sector in research policy making usually takes place through the organisations representing the Private Sector which were mentioned in Chapter 1. But these do not cover the whole business sector, and membership of SMEs is very low. 9 Indus- try representatives have contributed to policy instigation by preparing various strategy documents, like the Estonian Innovation Programme (the main policy document of the Estonian National Innovation System), approved in 1998 at the Research and Development Council (RDC). The R&D strategy document Knowledge–based Estonia (approved by the Parliament in 2001) was prepared by a working group which did not include the Private Sector. How- ever, the draft version of the document was broadly discussed and amendments were proposed by universities, R&D institutions, entrepreneurs and professional unions of entrepreneurs. Implementation and assessment/revision stages Active involvement in research and technology policy sought and initiated by the Private Sec- tor is not very widespread. There are some business associations which provide services to their members, but there is no proactive SME scheme with firm visits, quick scans, advice and follow-up services combining technological support, with business and marketing support. 10 There is some Private Sector involvement on the local level, such as privately initiated attempts to create smaller-scale industrial parks. One rare example is Mayer Industries Ltd which, together with other local enterprises and the cooperation of local government created an industrial park at Tabivere in 2005. Their primary objective is to provide services related to logistics. 11 Concerning the policy implementation aspect, there are Private Sector representatives involved in Enterprise Estonia’s Board , where they can directly influence the strategic operation (including R&D policy formulation and implementation) of this main administrative body and contribute to recommendations for R&D strategy and policy. However, R&D is not the only field in which these groups are involved. In 2004, Enterprise Estonia agreed to support 6 technology development centres which are jointly financed by enterprises and R&D institutions. These fields include cancer research, nanotechnology, Estonian language technology, dairy products technology, food and fermen- tation technology, electronics and ICT. 12 General remarks about these joint activities were brought out in a conference 13 on the following topics: 1) competences outside of the Public Sector are not used, so there is a recognized need for private consulting and co-operation between Public and Private Sectors in support systems; 2) support systems are not catalyz-

9 (EMOR 2003). 10 (De Jager et al. 2002). 11 (Source: Tabivere Municipal Government). 12 (Kiilmaa 2004). 13 (TRANSACT 2004).

Page 4 of 17 Country Profile: Estonia ing networks due to common lack of expertise and the fact that their personnel lacks Private Sector background (academicians do not have a good understanding of the entrepreneurial environment – and vice versa - and Public Sector employees lose touch with real situations in the private sphere after several years as a consultant in publicly-financed innovation supporting services); 3) there is a need for partner support, because the best advice for entrepreneurs often comes from another entrepreneur with experience in a similar situation; 4) public organizations do not think strategically and their operation is on a year-to-year basis that makes it hard to implement capacious programs and to be result-oriented.(In this aspect many changes took place in the last two years.) Since the public support system is rather ineffective, an option would be to match Public Sector policy with Private Sector management. It would also improve mutual understanding of support systems and companies, be- sides improving the current situation where the public institutions’ jargon is incomprehensible to many entrepreneurs. In a small country like Estonia, informal relationships of policy-makers, executives and firm representatives play an important role. In some cases, entrepreneurs have expressed dissat- isfaction with their rather modest role in these decision-making or advisory bodies. Observations: possible barriers and current initiatives National research and innovation policy in Estonia targets in particular high–tech enterprises. However, given that most Estonian enterprises are not high-tech enterprises but rather active in traditional sectors, there are very few services that most firms can use. Currently, measures to support incremental innovations are absent in Estonia. As a result, many enterprises do not perceive innovation policy as an important issue. On the other hand, high-tech enterprises are interested in cooperation, but they are hampered by the lack of trained engineers, information about opportunities for cooperation and of trust between businesses and universities. 14 Another example is patenting policy. The number of registered patents in Estonia is small despite the low patent fees. Since the majority of larger Estonian enterprises are ex- port-oriented, they would however need an enhanced international patent protection. But still they are not particularly concerned about the Estonian patenting policy or by the level of patent fees. Various support systems claim to support Private Sector companies with taxpayers’ money. But their efficiency is low and a large part of budgets is used for maintaining their own organisations. Innovation support is orientated towards the academic sphere and does not re- alise the real market needs and structure. On the other side, businesses are not eager to finance joint research. Grants are applied mainly by the initiative of private companies, but there are cases 15 where the grant is offered directly to the company by the local Chamber of Technology and Entrepreneurship Development ( Tehnoloogia ja Ettevõtluse Arenduse Koda ). Generally, the banking and financial markets in Estonia are not innovation-friendly enough 16 and due to that, the venture capital market is rather underdeveloped as well. To improve the situation and to stimulate investment in firms with new R&D projects whose financing is considered by banks and private investors as being too risky, a state venture capital fund was proposed in 1999. 17 Concerning the Private Sector involvement in the operation of the planned venture capital fund, the strategy document of the MEAC suggested that the supervisory council of the fund should include representatives of the universities, top business executives and politicians. Under the previous government, the creation of funds stopped, but the new ruling coalition government (in power since April 2005) has decided to move on with the creation and launch of the fund. Though the Estonian Science and Innovation System has been in some cases acknowl- edged for quick development in the right direction, it’s exclusive high-tech orientation has

14 de Jager 2002, pp. 25. 15 Agasild 2003. 16 Innovation Policy in Seven Candidate Countries 2003. 17 Kõomägi 2004.

Page 5 of 17 Country Profile: Estonia been criticized, 18 as well as its orientation towards financing basic research instead of focus- ing on practical scientific applications. 19 Although the institutional set-up of the Research, Technology Development and Innovation (RTDI) funding system looks well structured, there are some problems with it. (For example, the structure between the MER and the MEAC is too fragmented). Consequently, the academic science part of the governance system is only bound to finance basic research, while the commercial science part cannot finance innovation without strong applied science. 20 Following the suggestions of foreign experts, several amendments were made to the Republic of Estonia Research and Development Act in 19.01.2005, e.g. concerning the role of SCC, RDC, ministries, Research Policy Committee, Innovation Policy Committee. 21 The weaknesses of the Estonian Science and Innovation System are the following 22 : (1) low awareness (low awareness on the part of firms of the need for technology development and the unwillingness of politicians to invest in technology development); (2) aside from the overall low levels of funding, the over-allocation of funds towards basic research and to sciences is not related to technology; (3) poor functioning of technology policy management and non-existent contacts with firms. This situation is largely a heritage of the previous Soviet system, where R&D activities were performed in large institutes but not in enterprises, and where experimental R&D activities and development based on customer feedback were not commonly practiced. This explains the low level of Private Sector cooperation with universities and the Private Sector’s lack of involvement in research policy.

3. Other important examples of research policy decisions with Private Sector involvement Innovation in the regions The local chapters of the Estonian Chamber of Commerce and Trade in Tartu, Pärnu and Jõhvi have participated in various working groups and councils in the preparation of strategy documents. An example is the participation of the Tartu sub-chamber in the working group of the regional innovation strategy project in 2003. 23 In a similar way, the local Chamber of Commerce and Trade in Ida-Virumaa has cooperated with the Ida-Virumaa agency of Enter- prise Estonia , the County Government of Ida-Viru and the local governments. The Tartu Regional Innovation Strategy ( Tartu Regionaalne Innovatsioonistrateegia ) aims at increasing the competitiveness of enterprises in Tartu and Southern Estonia through research and innovation. The expected results of the project are the sharing of roles between different institutions, the creation of strategy-generating action plans in specific areas and the implementation of concrete innovation development projects (with the support of EU structural funds and other programmes). The project was coordinated by the Tartu municipal government and executed by the Tartu Science Park. The project lasted from January 2002 till August 2004. In the 0-phase of the project, various work groups of representatives from enterprises, universities and support organisations were formed by entrepreneurs of the Tartu region. Phase 1 involved the analysis of the needs of the firms and the region’s technologies and innovation support system. In the second phase, strategy options were discussed and a strategy was formulated. The interaction of university and entrepreneurs in the Tartu region has also been initiated by the Tartu University Institute of Technology, which has organised various seminars, conferences, and trainings for the entrepreneurs and employees of the Tartu University concerning patenting, compiling a business plan, and financing start-up enterprises. The initiative is expanding to cover other regions of Estonia as well (the follow-up project Estonian Regional Innovation Strategy started in 2005).

18 Radosevic 2002. 19 Hernesniemi 2000. 20 Nedeva and Georghiou 2003. 21 Teadus – ja arendustegevuse korralduse seadus, 2005. 22 Hernesniemi, 2000 . 23 (Aastaraamat 2003)

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The design of the Development Strategy of Ida-Virumaa (for 2005-2013) is another example of the involvement of entrepreneurs in regional level policy-making. 24 The former chairman of Estonian Oil Shale (mining) chaired the working group on the development of entrepreneurship, while the chairman of the Silmet Group (rare metal producer) chaired the infrastructure working group. A part of the development strategy has been the promotion of research and innovation. Particular projects include the development of the Oil Shale Technology Devel- opment Centre, nanotechnology, product development at Silmet, support for the firms of the construction cluster and the creation of the Ida-Viru industrial education and innovation centre. The construction of a port in the town of Sillamäe in the free trade zone has been important for the planned importation of Russian chemical products to the European Union market and thus contributes to the better appreciation of the region from many aspects. Research policies of research organisations For research strategy decisions in universities, Private Sector involvement is in most cases not very important. The general reason for this is the basic science orientation of Estonian public research (see also Chapter 1). Research programmes are typically chosen in accor- dance with the mission statements of the institutions. For instance, at the University of Tartu all mission statements as well as project proposals and final research reports are discussed and approved by the boards of faculties and institutes. The University also has an R&D de- partment which supports the planning process of research activities. Strong guidelines for supervision of research activities and research results are also set by the ESF. The evaluation report on public research in information technology and systems engineering 25 indicated that many post-graduate students and senior staff work part-time for Private Sector companies, due to the large difference between the salaries of the universities and enterprises. Many university departments have created spin-offs that enable the rapid transfer of research results to the industry. The strong involvement of commercial enterprises af- fects the nature of research. Since these enterprises finance the studies and are more interested in commercially applicable research, they are interested in having a strong influence on the research topics. The situation is aggravated by the attitude of the state funding system which prioritises basic research (however this influence is diminishing year-by-year). Despite such integration between industry and research, private firms still have a rather low level of awareness of research institutes and their activities. 26 Also, most of the firms see such cooperation as unnecessary because the competitive situation in the domestic market does not yet allow for strong business R&D. Cooperation with various support structures (Technology Parks and Innovation Centres) has been more extensive, but is still relatively inefficient. Recently, the number of research personnel has increased to a certain extent, but the per- centage of research staff employed in the Private Sector is still rather low (ca. 22 % in 2004 in terms of head count, and 20% in FTE.) 27 . It has been calculated that 150-160 new PhD graduates in technical science and technology would be needed each year in Estonia, while in fact, only about 20 % of that number graduate annually (in 2001 there were 31 graduates in science, engineering, manufacturing and construction)28 . In order to meet the acute short- age of information technology graduates, the Estonian Information Technology College has been established however, it only offers undergraduate programs. 29 Another problem in Estonia is that research staff is specialised in basic science rather than in applied fields. 30 As a political goal, research should be more concentrated on applied research and development. 31 The innovation process in Estonia is supported by the rather high information and communication technologies (ICT) expenditures, which is 3.5 % of the na-

24 (Ida Virumaa 2005) http://portaal.ell.ee/5415. 25 Research evaluation… 2000. 26 Tiits and Pihl 2002. 27 Authors’ calculations based on Estonian Statistical Office data. 28 Strack, 2003. 29 See http://www.itcollege.ee/ 30 Ibid. 2003. 31 Teadmistepõhine Eesti… 2001.

Page 7 of 17 Country Profile: Estonia tional GDP compared to 3 % in the EU. Estonia is, in several ICT fields, the most advanced Baltic country and, in terms of Internet users and hosts, Estonia performs well even compared to the EU average. 32

4. Overview: Types and extent of Private Sector involvement General discussion and networking: In this field, Enterprise Estonia plays the most important role as the key institution in the implementation of innovation policy. General dialogue between various Public and Private Sector partners has been relatively weak, as has been pointed out already in earlier studies of the Estonian National Science and Innovation Sys- tem. 33 Policy makers usually initiate dialogue, while the Private Sector is not very active. Some bridging institutions play an important role through actively consultation and remedial policy measures. Public arrangements for Private Sector involvement consist of organising conferences and workshops, where the discussion results can be used as inputs for policy making. In Estonia, there is a low level of public competence for participation in policy- making in research and innovation issues. Competence can come from private consultants, but scientists are not motivated to undertake consulting or to work in economy, although this differs by fields. The existing (passive) databases are not effectively used by the Private Sec- tor. Staff exchange and staff mobility are not common. However, some support has been provided by the ESTAG Research-Industry mobility 2003-2004 program (in the framework of Competence Centres). Awareness & influence: There is no general technology mapping performed in Estonia. Some sectoral studies have been carried out in which the Private Sector was indirectly involved, like the studies on the textile and wood sectors. Further studies of the chemical sector and oil shale-related industries are planned. These studies have been initiated by the MEAC. Many entrepreneurs have been actively participating in those studies. There are only a few examples when Private Sector provided a dvice for policy-makers, however, collaboration in advisory groups (e.g. SPINNO 34 or other projects) and in various meetings are present. Such activities are important for and support both the Private and Public Sectors. One positive example is Tartu University’s Technology Institute, where the institute helps with the transfer process, while Enterprise Estonia supplies information. The Institute initiates contacts with and advises enterprises in Southern Estonia. By active involvement and cooperation with the county government, it has also supported industry initiative. (Co)-design and decision-making: The Private Sector has no motivation for active participation in evaluation studies, because state/ EU project funding usually finances the academic sector. The MEAC has engaged a range of feasibility studies for RTDI infrastructure. Joint activities between the Public and the Private Sectors on the operative level include technology and industrial parks, business incubator centres, joint conferences and work- groups.

5 Selected useful examples of transferable approaches and experiences. Examples are selected according to the priority fields of Estonian innovation policy. Since the aim of the Estonian strategy (”Knowledge-Based Estonia”) is to support competitiveness through enhancing innovation in both traditional industries and new high–tech industries, the examples of experiences are brought from different fields. 5.1. Conferences, roundtables Enterprise Estonia’s Forum Estonia at the Crossroads was held in Tallinn in November 3–4, 2005. It presented an overview of the systems of other countries and offered advice to Esto-

32 Masso 2003. 33 Hernesniemi, 2000; Romanainen 2001. 34 A project of the MEAC and ESTAG; its aim is to enhance the applications of scientific research results in enterprises (through spin-offs etc).

Page 8 of 17 Country Profile: Estonia nia’s policy makers and scientific and business leaders on the formation of national science, technology and innovation policy. Roundtable discussions at the Estonian Academy of Sciences has stressed the importance of cooperation between scientists and entrepreneurs and tried to connect the two. For example, in December 2004, the Academy organised a roundtable discussion together with the Estonian Employers’ Confederation on the topic “What scientists and entrepreneurs should know about each other” which presented topics such as research studies, the connection of applied research and branches of industry and co-financing of applied studies, etc. 5.2. Innovation in the Estonian Wood Sector. One of the examples of traditional industries is the wood sector, which has a paramount role in the development of the entire Estonian economy. As discussed by Ukrainski and Varblane (2005) R&D institutions play a minor role in the innovation processes of wood and paper companies. One explanation for this is that the industry is absorbing modern technologies from elsewhere and is neither using nor creating new knowledge. An additional explanation is that wood technology research and training are lagging behind actual industry needs. The R&D activities of those branches are extremely under-developed, as recognized in development strategies for the wood and forestry sector. 35 This part of the sector-specific innovation system is very weakly developed so far and can hinder the development of the whole sector. This shows the weakness of the current policy instruments. However, within the SPINNO framework, the Institute of Technology organised a wood sector seminar in 2005 on how to exploit and create new hardwood processing technologies where scientific institutions (Esto- nian Agricultural University, Tartu University, Tallinn Technical University); public and bridging institutions (Foundation Archimedes, Tartu County Government) and Private Sector companies (Ecobirch Ltd) participated. This was a first attempt to influence R&D in universities to account for Private Sector needs. 36 5.3. Innovation in Biotechnology There are 15 closely related research institutions with an overall staff of 300 working in biotechnology. 37 The biotech sector in Estonia is rather small, with around 30 active enterprises that are rather small as well. The BioSPINNO project 38 has been quite successful and rather different from other SPINNO-projects. Firstly, the number of partners involved in the consor- tium included all the above-listed university departments, research institutes and companies actively involved in the biotechnology sector in Estonia. Secondly, the fact that the companies are involved and have already effectively networked nationally, means that they are further ahead in the innovation cycle than the participants in the other projects. This is one project which aims at building collaboration within the sector, stronger links with governmental departments, and finding alternative sources of finance such as venture companies 39 . 5.4. The Estonian Information Technology Foundation A good example of Public Private-Partnership is the Estonian Information Technology Foun- dation (Eesti Infotehnoloogia Sihtasutus), established by the government, the University of Tartu, the Tallinn University of Technology and the Association of Estonian Information Technology and telecommunications companies. The non-profit foundation aims at training IT specialists and supporting development work in the area of information and communication technologies in Estonia. One of its most important activities has been the establishment and administration of the Estonian Information Technology College.

35 (Ministry of Environmental Affairs 2003). 36 (Institute of Technology, Tartu University FEBA) 37 The key actors are listed in Fraunhofer (2002), p.17–27 38 (SQW 2003:8) 39 However, it is still to early to assess the final results.

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Appendix 1: Overview of identified instruments for Private Sector involvement and their use in Estonia Used in Inten- Initi- Examples Instrument sity of ated Used for and use by remarks Instigation Instigation Design Implement. Review

Informal contact / Occa- Both For designing and imple- Effect of small consultations sional sides menting R&D policy. country size Mainly used for discussions and the adduction of views or Mostly initiated Public Conferences Growing Sector platforms of Private Sector by public policy representatives with public institutions institutions’ representatives

Discussion plat- Not – forms common Estonian Occa- Both For initiation and design of Networks sional sides R&D policy measures. Wooden Houses Association ESTAG

Generaldiscussion networks & Staff mobility & Beginning Both For implementation of Private research and exchange to use sides Sector R&D projects. industry mobility support 2003-04

Would be used in the future Enterprise Ad hoc studies Not – for designing relevant policy Estonia plans to common measures. map the existing technologies

Position papers Not – fluence common Ad hoc meetings Not Awarenessin- & – and workshops common Through indus- Formal consulta- Occa- Both For designing and imple- tions sional sides menting R&D policy. try associations (ETTK, EVEA) Tartu Univer- Mainly for proposals regard- sity’s Institute of

Advice Advisory groups Beginning Public ing the design of R&D policy, Technology, & committees to use Sector but also the evaluation of Advisory Boards policy implementation of Enterprise Estonia. Sectoral studies (biotechnology, Evaluation stud- Public Mainly used for designing wood), evalua- ies Growing Sector and initiating public policies. tion studies (e.g. Competence centres, business incubation)

(Steering) com- Public For initiation, design and im- Through Sector / plementation of R&D poli- mittee participa- Regular industry asso- tion Both cies, but also for supervision ciations sides of policy implementation.

Public For initiation, design and im- Through indus- Board member- try associations Regular Sector / plementation of R&D poli- ships Both cies, but also for supervision (e.g. in EAS sides of policy implementation. Counselling Chamber). TRIS, Ida- Occa- Both For initiating and designing Virumaa entre-

(Co-)design & decision making (Co-)designdecisionmaking & Task force sional sides R&D policies. preneurs and local government officials

For different purposes, from Depending on (Co-)funding Occa- Both specific joint projects to broa- the type of of research sional sides der policy activities, mainly project. for R&D policy implement. Table 1: Overview of instruments used for Private Sector involvement

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Appendix 2: Selected relevant sources and literature

Section 1 Arundel, A. (2004), “IB (InnoBarometer) Results”, European Trend Chart on Innovation, Trend Chart Statistical Papers Series , http://trendchart.cordis.lu/innobarometer.cfm De Jager, D., Sowden, P., Ohler, F., Stampfer, M. (2002) Competence Centre Program of Estonia Feasibility Study, Foundation Enterprise Estonia, Innovation Studies 1. Eesti Edu 2014. Vabariigi Valitsuse strateegiadokument . 20.11.2004. 22 lk. http://www.riigikantselei.ee/failid/EE2014.doc.pdf, Ettevõtete innovatsiooniuuringu tulemuste esialgne analüüs (aastad 2002-2004) (2006), Tal- linn: Eesti Statistikaamet. EUROSTAT (2003), R&D expenditure and personnel in the candidate countries in 2000 , Sta- tistics in Focus, Science and Technology, Theme 9-1/2003, 8 pp. EUROSTAT (2005), Structural Indicators. http://epp.eurostat.cec.eu.int/portal/page?_pageid= 1133,1,1133_1457345&_dad=portal&_schema=PORTAL Hernesniemi, H. (2000) Evaluation of Estonian Innovation System . Support to European In- tegration Process in Estonia, (M ES 9620.01.01), ETLA, PHARE. Innovation Policy in Seven Candidate Countries: The Challenges (Volume 1). (2003). Euro- pean Commission, Enterprise Directorate-General, Innovation Directorate. ADE - Aide ą la décision économique S.A. (Belgium), UCL SSEES, March 2003, 181 pp. Kilvits, K. (1997), Innovation and Restructuring of Estonian Industry , Baltic Economic Man- agement Training Program, Halifax, Canada, 68 pp. Kurik, S. (2003), Innovation in Estonian Enterprises: Is it Sufficient for Competing in the World Economy? , EBS Review , Winter 2002/2003, No 15, pp. 9-14. Kurik, S., Lumiste, R., Terk, E. , Heinlo, A. Innovation in Estonian Enterprises 1998–2000, Tallinn, (2002). Martinson, H., Dagyté, I. and J. Kristapsons (1998), Transformation of R&D systems in the Baltic states , in Meske et al. (eds.) Transforming Science and Technology Systems – The Endless Transition?, IOS Press, Amsterdam, pp. 108-117 Masso, J. (2003), The State of "Informatization in the Baltic States: A Comparative Analysis , pp.121-145. – In Eufemia Teichmann (ed), Nowe Porganicze Europy. Litwa, Lotwa, Estonia, Pod. Red., Polskie Wydawnictwo Economiczne, Warszawa. Masso, J. (2004), The Innovativeness of the Baltic States Economies , in E. Teichmann and M. Weresa (Eds), The enlarged European Union and its Eastern neighbours. First experience of co-operation , Warsaw School of Economics, forthcoming. Nedeva, M., Georghiou, L. (2003), Assessment of Estonian R&D and Innovation Funding System , PREST, The Victoria University of Manchester, UK, 64 pp. Radosevic, S. (2002), Innovation capacities of Estonia within the enlarged EU; Innovation in Estonian enterprises in 1998-2000, seminar material. December 05, 2002, Tallinn. www.mkm.ee/dokumendid/Slavo%20Radosevic.pdf State Aid Scoreboard 2004 (2004), Commission of the European Communities Teadmistepõhine Eesti. Eesti teadus-arendustegevuse strateegia 2002-2006 . (2002) Tallinn, Haridusministeerium, Majandusministeerium, 33 lk. Section 2 De Jager, D., Sowden, P., Ohler, F., Stampfer, M. (2002) Competence Centre Program of Estonia Feasibility Study , Foundation Enterprise Estonia, Innovation Studies 1.

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Eesti Edu 2014, Vabariigi Valitsuse strateegiadokument . 20.11.2004. 22 lk. http://www.riigikantselei.ee/failid/EE2014.doc.pdf EMOR (2003) Eesti väikese ja keskmise suurusega ettevõtete arengusuundumused , http://www.eas.ee/vfs/2096/Ettev%F5tlus%20-%20Emori%20uuring.doc Hernesniemi, H. (2000) Evaluation of Estonian Innovation System , Support to European In- tegration Process in Estonia, (M ES 9620.01.01), ETLA, PHARE Kalvet, T., Kattel, R., Küünarpuu, R., Vaarik, D. and K. Rahu (2005), Innovatsioon ja Eesti arvamusliidrid. Eeluuring riikliku innovatsiooniteadlikkuse programmi sihtrühmade relevant- sete vajaduste leidmiseks , Poliitikauuringute keskus PRAXIS, Hill & Knowlton Eesti AS, 63 lk. Knowledge–based Estonia (Teadmistepõhine Eesti). Eesti teadus-arendustegevuse strateegia 2002-2006. (2002) Tallinn, Haridusministeerium, Majandusministeerium, 33 lk. Kurik, S., Lumiste, R., Terk, E. , Heinlo, A. Innovation in Estonian Enterprises 1998–2000, (Tallinn, 2002) Reid, A. (2002). Research, technology development and innovatin measure for the Estonian SPD 2003–2006 , Final report presented to the Ministry of Economic Affairs and Communica- tions Strack, G. (2003), “Catching up with the EU? Comparing highly qualified human resources in the EU and the Acceding Countries”, EUROSTAT, Statistics in Focus, Science and Technol- ogy , Theme 9-9/2003. Stardiabi programm – EVEA seisukohad. 14.02.2005. Tamkivi, R. (2004) Teadus/tehnoloogiapargid: üldistuskatse. Innovaatika, 32-33 (65-66):12– 15. Section 3 Aastaraamat 2003 (2003), Eesti Kaubandus –Tööstuskoda (Yearbook 2003. Estonian Chamber of Commerce and Trade) http://www.koda.ee/?id=1148 Ida-Virumaa Arengustrateegia 2005-2013. 2005. Research Evaluation in IT and Systems Engineering in Estonia (2001), Higher Education Quality Assessment Centre of Estonia. http://www.esis.ee/eVikings/evaluation/research_evaluation.pdf Tiits, M and T. Pihl (2002), IST R&D and innovation in Estonia , Archimedes Foundation, Es- tonian eVikings, 40 pp. http://www.esis.ee/eVikings/ Section 4 Agasild, T. Viking Windows Ltd . Recorded interview by U. Varblane, T. Roolaht and T. Vis- sak (10. November 2003), in Estonian. Estonian Academy of Sciences Yearbook Annales Academiae Scientarum Estonicae X (37) 2004. Estonian Academy of Sciences, Tallinn, 2005, 145 pp. Hernesniemi, H. (2000) Evaluation of Estonian Innovation System, Support to European In- tegration Process in Estonia, (M ES 9620.01.01), ETLA, PHARE Innovation Policy in Seven Candidate Countries: The Challenges (Volume 1) , (2003). Euro- pean Commission, Enterprise Directorate-General, Innovation Directorate. ADE - Aide ą la décision économique S.A. (Belgium), UCL SSEES, March 2003, 181 pp. Innovation Policy in Six Candidate Countries: The Challenges. Cyprus, Czech Republic, Es- tonia, Hungary, Poland and Slovenia , Final Report (2001), ADE - Aide ą la décision économique S.A. (Belgium), MERIT, SSEES, September 2001, 189 pp. Kiilmaa, E. (2004) Tehnoloogia arenduskeskused tulekul. Innovaatika 32-33 (65-66):15.

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Kuldkepp, E. RPM. Interview by Varblane, U.; Roolaht, T.; Vissak, T, (14 October, 2003.), in Estonian Kull, A., Estonian Woodworking Federation, Recorded interview by U. Varblane, T. Roolaht and T. Vissak (29 October 2003), in Estonian. Kõomägi, M. (2004), Riikliku riskikapitalifondi asutamise vajalikkus Eestis , Economic policy perspectives of Estonia in the European Union: reports-papers of the XII scientific and edu- cational conference : (Tartu - Värska, 1-3 July 2004) / Tartu Ülikool, majanduspoliitika õppe- tool, pp. 574-582. Lange, L. de, De Bruin, G., Kleyn, B., Favalli, A., Muñoz, E. Vázquez and A. Di Anselmo (2004), Access of Enterprises to Venture Financing in Estonia: Feasibility Study of A Gov- ernment Support Scheme , Enterprise Estonia, Innovation Studies 5, 85 pp. OECD (2002), Entrepreneurship and Enterprise Development in the Baltic Region . Policy Guidelines and Recommendations, 74 pp. Romanainen, J. (2001), Technology Policy of Estonia: System Planning and Development of Implementing Agency, ESTAG, HAUS Rouwmaat, V., Reid, A., Kurik, S. (2003). Business incubation. Review of current situation and guidelines for government intervention in Estonia , Foundation Enterprise Estonia, Inno- vation Studies 1 TRANSACT Conference Innovation Management in Estonia (2004) Workshop Results [http://www.novaator.ee/?op=article&ID=54]. Section 5 De Jager, D., Sowden, P., Ohler, F., Stampfer, M. (2002) Competence Centre Program of Estonia Feasibility Study , Foundation Enterprise Estonia, Innovation Studies 1. Frauenhofer ISI. (2002). Research on the Estonian Biotechnology Sector Innovation System, Report submitted to Enterprise Estonia, Tallinn. Ministry of Environmental Affairs. (2003). The Strategy of Estonian Forestry to 2010 (Tallinn, 2003), in Estonian. SQW Economic Development Consultants. (2003). Evaluation of the Spinno Program , Final Report to Enterprise Estonia Ukrainski, K., Varblane, U. (2005) Sources of Innovation in the Estonian Forest and Wood Cluster, in Helena Hannula, Slavo Radosevic and Nick von Tunzelmann (eds), Estonia, the New EU Economy: Building a Baltic Miracle?, London: Ashgate Publishing Ltd., forthcoming. Varblane, U. (2004), Competitiveness of Pulp and Paper Industry, in U. Varblane and K. Ukrainski (eds), The Competitiveness of Estonian Wood Industry (Tartu, 2004), pp. 233–48.

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Appendix 3: Selected relevant sources and literature

Relevant laws, regulations etc. Note. This list is not exhaustive. Ülikooliseadus (The Law on Universities), 18.02.1995. Patendiseadus (Patent Law), 23.05.2004. “Eesti riikliku arengukava EL struktuurifondide kasutuselevõtuks – ühtne programmdokument aastateks 2004–2006” meetme nr 2.3 “Teadus- ja arendustegevuse ning innovatsiooni edendamine” osa “Teadus- ja arendustegevuse projektide toetamine” tingimused. www.riigiteataja.ee (Estonian National Development Plan for the Implementation of the EU Structural Funds. Single Programming Document 2004-2006. The conditions of the part „Support for Research and Development Projects“ of measure 2.3. “Promotion of Research, Technology Development and Innovation”. The decree of the Minister for Economic Affairs and Communications of the Republic of Estonia from 13th of April 2004 no. 73. www.riigiteataja.ee) “Eesti riikliku arengukava Euroopa Liidu struktuurifondide kasutuselevõtuks – ühtne programmdokument aastateks 2004 –2006” meetme nr 2.3 “Teadus- ja arendustegevuse ja innovatsiooni edendamine” osa “Spinno programm” tingimused. www.riigiteataja.ee (Estonian National Development Plan for the Implementation of the EU Structural Funds. Single Pro- gramming Document 2004-2006. The conditions of the part „Spinno Programme“ of measure 2.3. “Promotion of Research, Technology Development and Innovation”. The decree of the Minister for Economic Affairs and Communications of the Republic of Estonia from 3d of May 2004 no. 122. www.riigiteataja.ee) “Eesti riikliku arengukava Euroopa Liidu struktuurifondide kasutuselevõtuks – ühtne programmdokument aastateks 2004–2006” meetme number 2.3 “Teadus- ja arendustegevuse ning innovatsiooni edendamine” osa “Ettevõtlusinkubatsiooni program” tingimused Majan- dus- ja kommunikatsiooniministri 28. oktoobri 2004. a määrus nr 198 www.riigiteataja.ee Es- tonian National Development Plan for the Implementation of the EU Structural Funds. Single Programming Document 2004-2006. The conditions of the part „Business Incubation Pro- gramme“ of measure 2.3. “Promotion of Research, Technology Development and Innova- tion”. The decree of the Minister for Economic Affairs and Communications of the Republic of Estonia from 28th of October 2004 no. 198. www.riigiteataja.ee Teadus- ja arendustegevuse korralduse seadus (The Law on the Organization of Research and Development Activities), 02.05.1997. Last amended: 06.04.2006.

Policy and Strategy Documents Teadmistepõhine Eesti. Eesti Teadus- ja Arendustegevuse Strateegia 2002-2006.(Estonian Strategy of R&D-activities for 2002–2006 “Knowledge-Based Estonia”) 33 lk. www.riigikantselei.ee Eesti Edu 2014. Vabariigi Valitsuse strateegiadokument. (The Strategy Document of Esto- nian Government „Success of Estonia 2014“) 18 lk. www.riigikantselei.ee Riiklik Arengukava 2000-2002. (Estonian National Development Plan 2000-2002) Oktoober 1999, 123 lk. www.mkm.ee Eesti Riiklik Arengukava Euroopa Liidu Struktuurifondide Kasutuselevõtuks. Ühtne programmdokument 2004-2006. Estonian National Development Plan for the Implementation of the EU Structural Funds. Single Programming Document 2004-2006. 363 lk. www.struktuurifondid.ee Eesti riiklik riskikapitali fond. Strateegiadokument (Estonian State Venture Capital Fund. Strategy Document). Ministry of Economic Affairs and Communications, 9.06.2004 www.mkm.ee

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Küttner,R. (koost.). Eesti riiklik innovatsiooniprogramm: (toodete ja tehnoloogiate konkurent- sivõime tõstmise programm). (Estonian State Innovation Programme. Programme for increasing the competitiveness of products and technologies) Tallinn, 1998. 56 lk. Estonian State Innovation Programme. National R&D programme of the Ministry of Education and Research (summary) "The Esto- nian Language and National Memory" for years 2004-2008 www.riigikatselei.ee National R&D programme of the Ministry of Education and Research "Collections of Humani- ties and Natural Sciences" for the years 2004-2008 www.riigikatselei.ee National R&D programme of the Ministry of Agriculture "Collection and Conservation of Plant Genetic Resources for Food and Agriculture for the Years 2002-2006" www.riigikatselei.ee The Programme of the Technology Development Centres. Programme Document. (2002). Ministry of Economic Affairs and Communications, 20 lk.

Databases Community Innovation Survey 3 (Innovation activities of Estonian Enterprises 1998-2000). Note – the databases of later innovation surveys (CIS4 etc.) are at the moment still at the phase of compilation.

Studies concerning the Estonian National Science and Innovation system M. Tiits, R. Kattel, T. Kalvet (2005), ’Made in Estonia 2005’, Ministry of Economic Affairs and Communications of the Republic of Estonia, 107 pp. ’Ettevõtluse Arendamise Sihtasutuse toetatud tootearendusprojektide tulemused’ (The Re- port of State Control of Enterprise Estonia’s support to projects on product development), (2004), Riigikontroll (State Audit Office of Estonia), 31 pp. M. Nedeva, L. Georghiu (2003), “Assessment of Estonian R&D and Innovation Funding Sys- tem”, PREST, The Victoria University of Manchester, UK, 64 pp. SQW Limited (2003) ’Evaluation of the Spinno Programme. Final Report to Enterprise Esto- nia’, 41 pp. Mollerup Designlab A/S (2003), ’Establishing the basis for the elaboration of the Estonian design policy measures.’, 102 pp. M. Tiits, R. Kattel, T. Kalvet, R. Kaarli (2003) ’Overview of Research, Technology Develop- ment and Innovation (RTDI) Policy in Estonia. For OECD Directorate for Science, Technol- ogy and Industry, Committee for Scientific and Technological Policy”, Estonian Ministry of Economic Affairs and Communications, 57 pp. Fraunhofer ISI (2002), ’Research on the Estonian Biotechnology Sector Innovation System.’ D. de Jager, B. van Looy, M. Hinoul (2001), ’High Tech Venturing in Estonia: Background Report for the ESTPIN program.’, Technopolis BV, KU Leuven R&D, 65 pp. J. Romanainen (2001), “Technology Policy of Estonia: System Planning and Development of Implementing Agency.”, Finnish Institute for Public Management, 42 pp. H. Hernesniemi (2000), “Evaluation of Estonian Innovation System”, Etlatieto Ltd., 76 pp. M. Tiits, R. Kattel, T. Kalvet, R. Kaarli (2003), ”Competitiveness and Future Outlooks of the Estonian Economy. R&D and Innovation Policy Review”, Research and Development Coun- cil, Tallinn, 73 pp. M. Tiits and R. Kaarli, (2001) “Research and Development in Estonia 2000-2001”, Research and Development Council, Tallinn, 30 pp.

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M. Tiits, R. Kattel, T. Kalvet (2004), ”Teadmistepõhine majandus ja majandusareng Eestis” (Knowledge Based Economy and Economic Development in Estonia), Poliitikaanalüüs nr 6, Poliitikauuringute keskus “ Praxis ”, 12 lk. Paasi, M. (2000), “Restructuring the innovation capacity of the business sector in Estonia. Business Survey Result”, Economics of Transition, Vol. 8 (1), pp. 175-195.

Innovation Policy Studies In Series of Innovation Studies – Creating an Innovative Estonia 5/2004 - Lex de Lange, Ger De Bruin, Bart Kleyn, Alessandro Favalli, Eri Vázquez Muñoz, Andrea Di Anselmo, “Access of Enterprises to Venture Financing in Estonia: Feasibil- ity Study of A Government Support Scheme”, Enterprise Estonia, 85 pp. 4/2003 – A. Reid, S. Kurik, „Optimizing the Design and Delivery of Innovation Policy in Esto- nia: an Evaluation of Policy Instruments for Intensifying Business Innovation”, Ministry of Economic Affairs and Communications of the Republic of Estonia, 56 pp. 3/2003 – V. Rouwmaat, A. Reid, S. Kurik, „Business Incubation: Review of Current Situation and Guidelines for Government Intervention in Estonia”, Ministry of Economic Affairs and Communications of the Republic of Estonia, 47 pp. 2/2002 – S. Kurik, R. Lumiste, E. Terk and A. Heinlo, „Innovation in Estonian Enterprises 1998-2000/ Innovatiivne tegevus Eesti ettevõtetes 1998-2000”, Enterprise Estonia, 99 pp. 1/2002 - Dick de Jager, Philip Sowden, Fritz Ohler, Michael Stampfer, “Competence Centre Programme Estonia. Feasibility Study”, Foundation Enterprise Estonia, 85 pp.

Research reports prepared within the EVikings project (http://www.esis.ee/eVikings) Pihl, T. (2001), “Analysis of Estonian IT Sector Innovation System. Estonian ICT Cluster: Present State and Future Outlooks”, Archimedes Foundation, 39 pp. Tarmo Kalvet, Tarmo Pihl, Marek Tiits (2002), “Analysis of Estonian IT Sector Innovation System: Introduction and Methodology”, Archimedes Foundation, 10 pp. Tarmo Kalvet (2001), “ICT, Innovations and Innovation Policy: The Case of Estonia”, Ar- chimedes Foundation, 38 pp. Tiits, M and T. Pihl (2002), “IST R&D and innovation in Estonia”, Archimedes Foundation, Estonian eVikings, 40 pp. http://www.esis.ee/eVikings/

International reports Innovation Policy in Seven Candidate Countries: The Challenges (Volume 1). (2003). Euro- pean Commission, Enterprise Directorate-General, Innovation Directorate. ADE - Aide ą la décision économique S.A. (Belgium), UCL SSEES, March 2003, 181 pp. Innovation Policy in Six Candidate Countries: The Challenges. Cyprus, Czech Republic, Es- tonia, Hungary, Poland and Slovenia. Final Report (2001). ADE - Aide ą la décision écono- mique S.A. (Belgium), MERIT, SSEES, September 2001, 189 pp. Innovation Policy Profile: Estonia (2001), Innovation policy in six candidate countries: The challenges. Estonian Institute for Future Studies, ADE, 93 pp. Kilvits, K. (1997), “Innovation and Restructuring of Estonian Industry”, Baltic Economic Man- agement Training Program, Halifax, Canada, 68 pp. Kurik, S. (2003), “Innovation in Estonian Enterprises: Is it Sufficient for Competing in the World Economy?”, EBS Review, Winter 2002/2003, No 15, pp. 9-14.

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Martinson, H., Dagyté, I. and J. Kristapsons (1998), “Transformation of R&D systems in the Baltic states”, in Meske et al. (eds.) Transforming Science and Technology Systems – The Endless Transition?, IOS Press, Amsterdam, pp. 108-117 European Trend Chart on Innovation. Country Report: Estonia. Covering period: November 1999-June 2000. (2000) European Commission, DG Enterprises

List of abbreviations CIS – community innovation survey EAS – Enterprise Estonia (EAS – Ettevõtluse Arendamise Sihtasutus ) ESEA - Estonian Business Association (ESEA – Eesti Suurettevõtjate Assotsiatsioon ) ESF – Estonian Science Foundation ESTAG – Estonian Technology Agency ETKL - The Estonian Association of Chemical Industry ETTK - The Estonian Employers’ Confederation (ETTK – Eesti Tööandjate Keskliit ) EVEA - the Association of Small and Medium Enterprises FTE – full time equivalent ICT – information and communication technologies MEAC - Ministry of Economic Affairs and Communications MER - Ministry of Education and Research NIS – National Innovation System RDC – Research and Development Council S&T – science and technology SCC - Science Competence Council TTU – Tallinn Technical University UT – University of Tartu

Further information and feedback This country profile has been prepared by a team of IKU Innovation Research Centre under the leadership of Dr. Annámaria Inzelt. For further information and feedback, please contact the responsible authors under [email protected].

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