ESTONIA national innovation framework

The responsibility for implementation of the strategy is shared equally between the Ministry Economic  Affairs and Communications and the Ministry of Education and Research. 

The national research and innovation policy is guided by the Research and Development Council,  comprising four ministers and eleven members appointed by the government. In addition to advising  the Government on R&D related matters, the Council also submits an annual report on upcoming R&D  objectives. The Research and Development Council has a say in the Government’s draft state budget,  relating to R&D financing. 

The overall R&D sector is regulated by the Organisation of Research and Development Act. The Act  outlines, details, regulates and enforces everything R&D related in the country. From organisation of R&D  institutions and state involvement, to financing and staff requirements.

In January 2021, The Estonian Reform Party and the Estonian Centre Party formed a government and  signed an agreement to maintain the progressive nature of Estonia, aiming to continually develop the  state in all fields and regions. This included some of the following relevant RDI points:

  • „We will allocate at least 1% of the GDP to research and development. We will prioritise  investments made into research and development by the private sector.“  
  • „We will create a financial facility of the future to accelerate the climate and digital transitions,  resources from which will be directed into research, development, and establishing a knowledge based economy.“  
  • „We will support companies that can contribute to creating and implementing science-based and  innovative technologies and need the support of the state in decreasing investment risks.“ 
  • „We will implement an applied research program to support enterprises in establishing and  funding applied research and finding suitable partners.“  
  • „We will implement a support measure for start-up companies and find a solution for the shortage  of specialists, making Estonia an attractive country for creating and testing innovative solutions.“

Startup Estonia is also a leading figure in supporting and uplifting startups and innovation. The head of  Startup Estonia, Eve Peeterson spoke in an interview with Invest Estonia, that „Estonia is a flagship tax competitive country in the whole OECD. It can boast of the simplest and most transparent taxation regime.  We are also talking 0% income tax on retained and reinvested profits, clear stock options regulation, plus  double taxation treaties on file with at least 60 countries.“ 

Learn more about the innovation framework of Estonia and DOWNLOAD the FULL report here.