The largest Estonian institution of the business support system
Largest agency implementing European Union S tructural F unds
EE representative offices: Helsinki, Stockholm, London, Hamburg, Moscow, St. Petersburg
EE offers over 40 different services for providing a wide range of support to businesses and research institutions, from specific project financing to wide-based information programs.
About E nterprise E stonia (EE)
< We have a dream Estonian business environment will be among the best in the world! We have a dream Estonian business environment will be among the best in the world!
Five directions, one goal We promote Estonian business environment and business competitiveness, increasing s ocial well- being.
Synergies of EE activities Fostering business and regional development Export development Promotion of R&D , innovation Foreign investment involvement Tourism development EE
EE’s main services Consultation program Business infrastructure development program Regional competitiveness enhancement program Competence ( R&D ) center program Training program R&D grant and loan program Export planning program Product development and marketing program for tourist industry Existing businesses Raising Estonia’s reputation as a tourist destination program Starter program for business start-ups Incubator services Mentor services Innovation awareness program SPINNO program Business and living environment Business start-ups
EE structure RDC * *RDC – regional development centers Business start-up’s division Business development division Business and living environment division Marketing Analysis and scheme development Expert assessment Support and financing service Tourism Development Center Information center Foreign Investments and representative offices PHARE unit Supervisory board Management board Internal audit unit Advisory boards
Financing O bject, O bjective to F inance T echnological I nnovation
Financing is “ o nly” a p art of the p rocess – develop the whole! IDEA BUSINESS PLAN TEAM START-UP FINANCING COMPANY SET-UP ACTIVITIES’ LAUNCH ADDITIONAL FINANCING PRODUCT DEVELOPMENT WORKING CAPITAL PUBLIC ISSUE Develop the whole process – you create much more value! Be systematic!
Business R&D by industry What industries to finance? Source: OECD
R&D financing and performance What is the main objective? Source: OECD
You need a tool for segmenting the client – an audit
Build up your communication strategy
Target areas of financing R&D perfomers = Target area of government instruments = Strategic direction Technology development SMEs Large companies Research institutes, universities Technology development Basic research Pilot projects Product development Market entry Source: Rand Europe
Start-up of new technology intensive companies; financiers and promot e rs Time Public investments, benefits Financing for development of business and internationalization ( private investors, public gurrantee ) Venture capital financing (private) Venture capital financing (seed, start-up; no public investments ) Search and identification of new ideas for start-ups ( EE ) Applied research ( EE ) Strategic basic research ( ETF, Academy of Sciences ) R&D funding (grants, product development loans, EE ) Funds for knowledge improvement in business and finance ( grants, EE ) Cash flow of a company $
Financing R TD Feasibility studies Development and applied research Product/process development and preparation of production R T D STRATEGY Planning Max Min TECHNOLOGY RISK % OF SUPPORT Application LOAN – 75% 75% GRANT 25% GRANT – 75% Production, marketing
Joint projects for the integration of “new” and “old” economy EXCHANGE INTEGRATION old economy new economy Creation of high-tech companies, emergence of new markets and sectors, growth. Modernisation, development of existing markets and present competitive advantages. + old economy new economy
Vision of technology development – m apping future technology needs Related technologies Break-through technologies Key technologies 1Y 3YRS 5YRS 7YRS COMPANY´S GOALS TEHNOLOGICAL CAPABILITIES MARKET NEEDS Teach your client to see the future!
Research 3 - 10 years 10% of resources Fundamental research 1 - 20 years - Universities - Scientific institutions
Approx. 1 - 5 years
E nterprise Estonia
Applied research and product development Approx. 1 - 2 years - Industry - E nterprise Estonia RESOURCES RISKS Strategic choices 2 - 5 years 30% of resources Product development 1 - 2 years 60 - 70% of resources RISKS RESOURCES INDUSTRY MODEL ACADEMIA MODEL Time and sources of financing. Time and allocation of resources. problems and research objects co-operation Strategic basis for industry – c o-operation with academia To teach…one has to understand the operational time - frame of ones clients
Evaluation of RTD projects Aggregate evaluation Marketing Organisation and management Financing Product and technology Guess, where do you find difficult problems, reasons for not financing a project? Not only in technology...
Understanding of innovation is too narrow equalling innovation with R&D based technological innovation and hi-tech. (more awareness, shift in financing)
Building up new client pool – innovation awareness, international cooperation, FDI
More towards the creation of new economic structures (long-term) than to the generation of positive changes in traditional sectors (short-term) – innovation management capacity, productivity, value-added, R&D (more cross-selling, broking model)
R&D and innovation policy is divided between two ministries – Ministry of Education and Research and Ministry of Economy. However, expected impact remains limited, if no introduction into other policy areas takes place
More development work among (implementation) partners
Our further challenges
Synergies in innovation and RTD support New products and technologies Access to new knowledge Surveys , support for technology transfer Increasing of awareness Development of competence Estonian Technology Agency New products and technologies Access to new knowledge Surveys , support for technology transfer Raising innovation awareness Development of competence Estonian Technology Agency EE’s Programs