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JUHAN PARTS Minister of Economic Affairs and Communications o f Estonia

Innovation policy in Estonia. JUHAN PARTS Minister of Economic Affairs and Communications o f Estonia. 20 years of Estonian RD&I policy. R&D strategy Knowledge based Estonia II 2007-2013 (2006). R&D strategy Knowledge based Estonia I 2002-2006 (2001).

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JUHAN PARTS Minister of Economic Affairs and Communications o f Estonia

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  1. Innovationpolicyin Estonia JUHAN PARTS Minister of EconomicAffairs and Communications of Estonia

  2. 20 years of Estonian RD&I policy R&D strategy Knowledge based Estonia II2007-2013 (2006) R&D strategy Knowledge based Estonia I2002-2006 (2001) EU structural funds 2007-2013 RD institutional reform (1996-1998) RD law (1994) RD Council (1990) EU member (2004) EU structural funds 2004-2006

  3. Estonian R&D expenditure,% of GDP Source:Statistical Office of Estonia

  4. Intramural R&D expenditures of business sector by economic activity (2010) Source: Statistical Office of Estonia

  5. Development of RD&I policy PAST 10 years : Two strategy periods

  6. Evolutionof RD&I policy-making Knowledge-based Estonia I 2002-2006 Knowledge-based Estonia II: 2007-2013 Renewalofknowledgebase Competitive RD infrastructure Bridgingcompanies and public RD Developmentofhumanresourcesof RD Financialsupporttoprivatesector RD Developmentofinnovationsupportnetworks ICT, biomedicine, materialtechnologies Enhancementoftheinnovationcapacitiesofexistingenterprises Inflowofnewinnovativecompanies Focusof KBE II shiftstowardsinnovationcapacityofenterprises and socio-economicchallenges Knowledgebased (RDI) policymaking ICT, biotechnology, materialtechnologies, energy, environment, healthcare, security

  7. Basically a „sciencepush“ strategy Aheadofitstime in termsofstateventurecapital and technology programmes Selectedresults: Firstsignificantupgradeof R&D infrastructures Launchofcompetencecenters Remarkableincreaseofhumanresources in innovation supportstructures (techtransferoffices, scienceparks) KBE I: shootingovertheheads

  8. Increasingthe innovation capacityofcompanies – some progress butratherslow (althoughsuddenspeed-uptriggeredbyrecession) Fragmentationofsupportmeasuresand valueformoneyasthebiggestissues “WhileEstonian innovation policyisoneofthemostdevelopedamongsttheNew EU MemberStates and iswellstructured and advanced in termsoftheuseofdifferentinstruments, thecapacitiesofthe RTDIpolicysystemhavetobeincreased.” (OMC Peer ReviewReportfor Estonia, 2007) KBE II: gatheringexperience in managing a verycomplexsupportsystem

  9. Keychoicesofenterprise and innovationpolicy(EconomicPolicyWorkingGroup at EstonianDevelopmentFund, 2010) • Functionalfocus: • Correcting market failures • Improvingweaklinksinthevaluechain (e.gproductdevelopment, export marketing) withtheviewtoachieveintra-sectoralchangetohigheraddedvalue and diversificationofactivities • Thematicfocus: • Forcreatingcritical mass forglobalbreakthrough • Bringingtogetheractors and poolingresources Thematicfocus Functionalfocus X

  10. Enterprise and innovationpolicymeasures National RD programmes National RD programmes Clusters and co-operation Market research Joint marketing Technology investments Applied research Human resources / qualified labour Competence centres Participation in fairs Skills development Product development/ design Export marketing Loans and guarantees Innovation vouchers Product development Distribution Customer relations Market analyzis R&D Developments Interneational procurements Produc- tion Logistics Brand-ing Sale- channels Customer care Value chain: Value Chain Group, Ltd

  11. 10 years of strategic RD&I planning Selectedresults

  12. ShareofEnterprise Estonia inintramural R&D investments

  13. Thewayforward

  14. The biggoals Increase of labour cost not too far ahead of productivity (5% @2020) Estonia 2020 Estonian share in world business (0,11% @2020) Productivity level 80% EU average Increase of RD spending (3%GDP @2020) Research policy Innovation policy

  15. Smartspecialisation • ICT supportingothersectors • Healthtechnologies and services • Resourceefficiency • RDI policypriorities = enterprisepolicypriorites • Emphasis on cooperation, demand-sidepolicies, frameworkconditions

  16. Wecannotcopystrategicpolicymakingfromothercountries. “Bestpractices” are somethingtobeinventedbeforeothers.Thankyou!juhan.parts@mkm.ee

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