THE MOVE TOWARDS THE KNOWLEDGE-BASED ECONOMY
Estonia fully acknowledges the need to make a decisive shift from the cost-based competitiveness towards the knowledge-based economy. Our long-term economic development is oriented towards increasing the role of the knowledge-based economy by stimulating private investment in research and development. The fact that the EU market has become a home market for local enterprises and that both enterprises and research institutions are able to participate in European cooperation networks, will definitely contribute to the realization of this goal. The objective of the national innovation policy is to assist traditional enterprises to maintain their competitiveness, notwithstanding any erosion of the current advantages conferred by low production costs. The fields with greatest research potential in Estonia are biotechnology, information technology and material technology. The achievements of Estonian scientists in these areas are internationally acknowledged and the educational standard offered by our universities is outstanding. These factors have contributed greatly to the growth in the number of successful enterprises with high export potential in Estonia. One of Estonias ambitious programmes to support the implementation of innovative ideas is the risk capital fund currently being launched by the Ministry of Economic Affairs and Communications. The aim of the fund is to provide financing to innovative and hightechnology business projects in their initial phase.
