1. Estonian Ministry of Education and Research KNOWLEDGE-BASED ESTONIA 2007-2013 Estonian Research and Development and Innovation Strategy Dr. Indrek Reimand Head, research policy department

2. Outline Estonian Research and development and innovation strategy for 2007 – 2013 Background and current status Towards entrepeneurial university / entrepeneurial research university

3. Research and Innovation Policy Documents  Action Plan For Growth And Jobs 2005–2007 For implementation of the Lisbon Strategy  R&D&I strategy 2007 – 2013 with implementation plan  Higher education strategy incl internationalisation  Measures  State Budgetary Strategy 2008 -2011  National Strategic Reference Framework (NRSF) 2007 – 2013 for implementation EU structural funds

4. KNOWLEDGE-BASED ESTONIA 2007-2013 Estonian Research and Development and Innovation Strategy - objectives the competitive quality and intensity of research and development; innovative enterprises creating new value in the global economy; an innovation friendly society aimed at long- term development.

5. KNOWLEDGE-BASED ESTONIA 2007-2013 main indicators (2013) R&D personnel : 8 researchers and engineers per 1000 labour force R&D intensity 3% of GDP (2014), Publicly financed 1,4% Number of scientific publications 1200 Number of patents 45 per million inhabitants

6. KNOWLEDGE-BASED ESTONIA 2007-2013 measures The objectives set in the strategy will be achieved through four measures: development of human capital; efficient organisation of public sector RD&I; increasing enterprises’ innovation capacity; policy-making aimed at long-term development of Estonia. 2013: GERD 3% from GDP

7. R&D expenditure, current situation In 2001-2005, R&D expenditures enterprise sector (BERD) grew on average 31% per year, being the highest in EU (incl 42,2% growth in 2004 and 45,5% in 2005; 70% growth of GERD in 2005 came from BERD). The growth of total R&D expenditure (GERD) of Estonia has also been in 2001-2005 the fastest in EU reaching on average 21% per year. R&D financing from foreign sources ca 17%, in public sector in 2006 growth 27% Not equally good situation with research personnel 7

8. R&D expenditure: GERD (% GDP): 0.94 1.13 (2006) EU25 1,85 BERD (% GERD): 46 EU25 64 Financing: 44 % (Gov), EU-27 35% 38 % (Enterprise sector), EU-27 54% 17 % (Abroad) Number of researchers (FTE per 1000 workforce) : 5,0 Source: Estonian Statistical Office R&D in Estonia (2005) 8

9. R&D expenditure % GDP

10. Number of researchers 10

11. Private sector R&D personnel and researchers in FTE versus R&D expenditure 2002 - 2005

12. Public sector R&D personnel and researchers in FTE and R&D expenditure 2002 - 2005

13. Character of public financing  1990 ies: quality research in existing fields  About 2000: major growth in enterprise R&D support  2006 onwards: infrastructure reconstruction  2008: major growth in human factor support  In future: major international activities

14. Problems  Still too small GDP per capita  Too small R&D financing per Researcher (slide)  Brain drain  Researcher’s career is not popular  Too few new graduates with doctor’s degree and engineers with requested qualification  Outdated infrastructure for R&D and higher education  The economy is dominated by low technology enterprises, which does not need much reasearch and development

15. NO KNOWLEDGE – NO FUTURE Valid also for Estonia Cost advantage for cheap workforce is vanishing fast Brain Drain -- EU’s market for workforce is opening How to maintain current high speed of growth

16. Good ambition … not defined in Estonian strategies Strategic plans approaching it Lisbon strategy, ERA green paper, Estonian RD&I strategy etc. Estonian research policy During reform years institutes were merged with universities Knowledge Based Estonia follows very much triple helix idea: education – research – business Relevance of research to economy and society as a distinguished value, raising the third mission idea of universities Entrepeneurial research based university

17. Measures related to gap btw academia and business SPINNO R&D projects support of enterprises Competence centres programme Science parks Recruitment of development staff/ innovation specialists (researchers, engineers, designers etc) in the companies Training of employees, counselling of companies in the field of technology, innovation audits, diagnostics Innovation projects with smaller volume and technological risk (e.g. testing and certification, design, prototyping, quality management, introduction of ICT etc) Cluster development (cooperation projects in the field of training, product development as well export marketing) National R&D programmes

18. Measures related to gap btw academia and business (2) On general level, several issues still need solution IPR questions Applied research quality evaluation Vertical priority setting and top-down implementation schemes Infrastructures sharing International activities (technology platforms etc)

19. Entrepeneurial research based university I warmly welcome the ambition and the initiative of Tartu University Thank you for the attention!