Economy and climate

Changes in various areas are needed to maintain Estonia’s basic principles, achieve the strategic goals and meet the development needs. Targeted and coordinated cross-sectoral cooperation is important. The
changes that need more attention than the proposals presented and negotiated during the preparation of the strategy are tied into five thematic bundles. Their implementation is monitored on the basis of a more
detailed action plan each year and, if necessary, adjustments are made based on domestic events affecting the development of Estonia and changes in the foreign environment.

We will introduce new solutions to encourage research and development and innovation in business sector

The goal is to improve the innovation and research and development capabilities in Estonian enterprises, which contributes to the growth of productivity and international competitiveness. To achieve that, we will develop new support services to encourage innovation in all stages of the business and technology development, such as market monitoring of new technologies and advice on the engagement of intellectual property, new business models and creative competencies. We will also reorganise support for applied research and increase investment in research and development by state-owned companies. We will facilitate the scientific knowledge created in Estonian research institutions to advance to business use faster and we will encourage collaboration between research institutions and entrepreneurs.

We will shape the Estonian research and development and innovation system into a well-functioning integrated whole, where the research and development activities of private and the public sector are closely intertwined and support each other. Considering that the integration of digital technologies in the business sector is poor in Estonia compared to other European countries, we will support the digitisation and automation of enterprises and ensure data quality that enables real-time data exchange between enterprises and in communication with the state. Also, in business diplomacy we will focus on knowledge-intensive enterprises. In order to reduce regional differences in the business sector, we will facilitate the acceleration of structural changes in the economy outside Harju County.

We will increase the capacity of fields of activity important to the Estonian economy

To ensure R&D collaboration between research institutions and enterprises in areas that are important for the Estonian economy and its regions (e.g., technologies supporting environmental protection, more efficient use of local resources, ICT), we will develop sectoral research programmes, rethink smart specialisation priorities, provide support for participation in the EU’s strategic value chains, and promote a sustainable bio-economy. The aim is to become a successful promoter, implementer and tester of R&D in selected areas worldwide, and hence become an attractive destination for foreign investment and an exporter of technology-intensive goods and services.

We will create a secure economic environment conducive to flexible, innovative and responsible entrepreneurship and fair competition.

Although the business environment in Estonia is currently generally competitive and stable, we need to improve our ability to adapt to changes ahead. Estonia’s international strength is the wide use of digital technologies in the public sector and the resulting simple administration. We will turn Estonia into a digital hub to which people from all over the world will come both virtually as e-residents and physically to offer their services to the world and establish enterprises. At the same time, we will create legislation and a tax environment that enables the implementation of new business models (e.g., platform economy, social entrepreneurship) and new forms of work, both in Estonia and in the EU, support R&D and innovation at all stages of business and technology development, and take into account the regional differences. We will promote environment-friendly and sustainable entrepreneurship through new legislation and other activities needed, ensuring a balance between the expectations of entrepreneurs and consumers. We will reduce bureaucratic obstacles to businesses. We are further developing the banking and capital markets in order to improve the ability to cope with crises and provide better financing opportunities for companies in all regions. We are raising public and private awareness of the threats to economic security.

We will introduce the principles of the circular economy

In order to increase the recycling of materials and the use of secondary raw materials, we will encourage the introduction of sustainable production and consumption patterns. Enterprises need to improve resource efficiency, including energy efficiency, for example, through industrial symbiosis, digitisation and support for more resource-efficient technologies. We are reorganising waste management based on the waste hierarchy and introducing innovative solutions to reduce waste generation and increase material recycling and separate waste collection.

We will move to climate-neutral energy production, ensuring energy security

The transition to climate-neutral energy production, which ensures good air quality, requires considering the possible alternatives and making choices. We must ensure the continuity of energy security and security of supply, both during and before the transition to climate-neutral energy production. In order to increase the share of renewable energy, we will find a solution that takes into account security, environmental protection and the interests of the population. We are open and support new solutions, such as offshore wind energy. In order to abandon electricity production from oil shale, we will support the mitigation of the socio-economic impacts of reduced electricity production from oil shale during the transition period, and develop and implement a package of services for Ida-Viru County that will help its people, enterprises and local governments benefit from the changes and ensure a fair transition to the new economy.

Last updated: 02.01.2021