COORDINATION OF INNOVATION STRATEGIES/SCHEMES IN METROPOLITAN

AREAS.THE ROLE OF PUBLIC POLICIES.

WHY OUR INNOVATION MANAGEMENT SCHEMES ARE APPOPRIATE FOR OUR

AREA?

MART REPNAUBUSINESS DEVELOPMENT MANAGER

Tallinn, June 07.-08, 2002

TALLINN – ECONOMIC ENGINE OF ESTONIA

ESTONIA: 15 COUNTIES, 247 LOCAL MUNICIPALITIES, incl. 42 cities & towns. STATUS OF TALLINN??

1/3 OF THE POPULATION, ½ COMPANIES & EMPLOYMENT, ½ OF GDP, 2/3 OF CORPORATE PROFITS IN TALLINN

80% OF FOREIGN INVESTMENTS ARE MADE IN TALLINN AND IN TALLINN`S HINTERLAND

EXPORTS OF TALLINN MAKE CA 60% OF THE TOTAL EXPORTS OF ESTONIA AND 70% OF THE TOTAL VOLUME OF IMPORTS

ECONOMIC SITUATION (1)

Active entrepreneurs by legal form (National Tax Office – June 2001)

Estonia TallinnCOMPANIES 48 213 (408 404 empl.) 25 363 (193 369)

Micro I 13 597 (0) 8 136 (0)Micro II 21 832 (74 825) 11 054 (36 489)Small 6 193 (122 677) 2 735 (53 352)Medium 1 148 (110 060) 479 (46 852)Large 155 (100 842) 75 (56 666)

Companies per 1000 ca 35 ca 64

+ SOLE TRADERS (FIE) 27 096 7 479

ECONOMIC SITUATION (2)

Gross Domestic Product

60.3% of GDP produced in Northern Estonia (Harju County +Tallinn), 1998 GDP per capita: ca 90,000 EEK in Tallinn, ca 60,000 EEK in Estonia.

Service & trade make up 57% of Regional gross value added in North Estonia.

GDP by economic activity, 2000: manufacturing 16.6%; wholesale & retail 16.1%; transport, storage & communication 14.9%; real estate & business services 11.9%.

Major sectors in Tallinn: transport, transit & logistics services; tourism; traditional industries (metal&machinery, food, textile, furniture); innovative industries (ICT, engineering, automation).

STRENGTHS OF TALLINN

FAST-GROWING ECONOMY

WIDE RANGE OF INVESTMENT OPPORTUNITIES

LOW RISKS, LOW COSTS, LOW TAXES

A HIGHLY SKILLED WORKFORCE

FIRST-CLASS COMMUNICATIONS

A PLEASANT ENVIRONMENT TO LIVE AND WORK IN

ONE OF THE MOST LIBERAL ECONOMIES IN THE WORLD

ECONOMIC POLICY

CORNERSTONES OF ESTONIA’S ECONOMIC POLICY since 1992 LIBERALISM & ECONOMIC FREEDOM STABILE & BALANCED FISCAL POLICY

THAT MEANS FREE MOVEMENT OF CAPITAL AND GOODS BALANCED BUDGET AND CURRENCY BOARD SYSTEM MINIMUM INVOLVEMENT OF THE PUBLIC SECTOR

BUT IT ALSO MEANS BALANCING TRADE DEFICIT WITH RELATIVELY BIG FDI REDUCED PUBLIC SECTOR ROLE IN DIRECT BUSINESS SUPPORT

PUBLIC ORGANISATIONS

ENTERPRISE ESTONIA

ESTONIAN REGIONAL DEVELOPMENT AGENCY ESTONIAN EXPORT PROMOTION AGENCY ESTONIAN TECHNOLOGY AGENCY ESTONIAN TOURISM BOARD ESTONIAN INVESTMENT AGENCY EE REGIONAL AGENCIES (IDA-VIRU & SOUTH-ESTONIA)

CREDIT AND EXPORT GUARANTEE FUND (KredEx)

OTHERS

REGIONAL BUSINESS DEVELOPMENT CENTRES

TARTU SCIENCE PARK

TALLINN TECHNICAL UNIVERSITY INNOVATION CENTRE

CENTRES OF EXCELLENCE (recently established)

TALLINN TECHNOLOGY PARK (planned)

INDUSTRY BRANCH UNIONS AND ASSOCIATIONS

FIELDS OF STATE SUPPORTNational SME Policy

HUMAN RESOURCES SUPPORT FOR TRAINING AND CONSULTANCY

FINANCES START-UP AID AND LOANS (VENTURE CAPITAL) CREDIT GUARANTEE SUPPORT FOR INFRASTRUCTURE

BUSINESS SUPPORT INFRASTRUCTURE BUSINESS DEVELOPMENT CENTERS INCUBATION AND TECHNOLOGY PARKS

BUSINESS INFORMATION BUSINESS PORTAL www.aktiva.ee EUROINFO CENTERS

FIELDS OF INNOVATION SUPPORTNational RD&I Policy (1)

FIRST DOCUMENT TO DEFINE PRIORITY INDUSTRIES information technologies and information society biomedicine materials’ technologies

DEFINES THE ROLE OF THE NATIONAL GOVERNMENT the main investor in creating the pool of knowledge, ensuring

reproduction of new knowledge and skills the catalyst of innovation process, accelerating the reproduction of new

knowledge and skills and encouraging enterprises to develop and implement new technologies

the regulator that creates a favourable environment for the development of RD&I

FIELDS OF INNOVATION SUPPORTNational RD&I Policy (2)

DEFINES SEVERAL SPECIFIC ACTIONS. The main ones are: setting strategic targets in order to acquire and apply new knowledge integrating activity plans (economy, education, RD&I) creating favourable policies and legislation for the private sector financing fundamental and applied research, and necessary infrastructure develop integrated mechanisms between R&D and the business sector launching national programs to implement priorities

STATE FINANCING OF R&D: TARGETED FINANCING R&D GRANTS SUPPORT PROGRAMMES FOR INNOVATION (enterprises) MAINTENANCE OF INFRASTRUCTURE NATIONAL R&D PROGRAMMES FOR INNOVATION (general)

SOME ISSUES FOR CONSIDERATION

HISTORICAL : broken tradition of innovation

SOCIAL-CULTURAL : Scandinavian influence and mentality

INSTITUTIONAL : limited capacity and financing

BUSINESS RELATED : orientation, awareness and authority

NATIONAL vs REGIONAL

ACTIVITIES IN LOCAL LEVEL

RITTS ??

EVALUATION & ANALYSIS

INCUBATION

NETWORKING ??

AREA CLUSTERS

INFORMATION

AWARENESS RAISING

CAPITAL GRANTS

CONCLUSIONS

There exists Research & Development Policy in Estonia There exists Regional Development Policy in Estonia (Tallinn??) There are govenmental measures for R&D activities in Estonia There are governmental measures for entrepreneurial development

in Estonia (Tallinn??)

There is no established Industrial and Research & Development Policy in Tallinn

There are local measures for entrepreneurial development, some plans for innovation infrastructure development

There is support for technology transfer between university and enterprises