Innovation in enterprises
Statistical activity code: 21702
Innovativeness and innovation activities of enterprises, expenditure on innovation activities; assessment of innovation objectives, information sources and partners in innovation co-operation by type of innovation, type of innovation activity, economic activity and size class
Estonian Classification of Economic Activities (EMTAK 2008) based on NACE Rev. 2
Classification of Estonian administrative units and settlements (EHAK)
NACE rev.2 divisions 5–33, 35–39, 46, 49–53, 58–66, 71–73
Co-creation product – a good or service co-created with users, i.e. customers or potential customers. Co-creation is characterised by active dialogue with users of the good or service, as a result of which it is possible to get new ideas and development suggestions.
Core process innovation – production or development of goods and provision of other services. Includes engineering and technical testing, analysis and certification to support production. Customised product – a product or solution for which the enterprise took into account customer needs but did not involve the customers in the development of the product or solution.
Enterprise with abandoned or ongoing innovation – an enterprise that started innovation during the reference period but abandoned it before the end of the reference period, or whose innovation is still ongoing at the end of the reference period.
Enterprise with administrative innovation – an enterprise that during the reference period improved or introduced business process support activities, including accounting, bookkeeping, auditing, payments, financial and insurance activities, procurement and outsourcing.
Enterprise with ICT (information and communication technology) innovation – an enterprise that during the reference period improved or introduced business process support activities, including the provision of services related to computers and other electronic equipment and systems, web hosting, data processing and databases, data transmission and other computer related information activities.
Enterprise with in-house R&D – an enterprise that during the reference period carried out research and development (R&D) within the enterprise mainly with own resources.
R&D comprises creative and systematic work undertaken in order to acquire and apply new knowledge. This work is novel and the scientific or technological problem lacks solution at an early stage. R&D should meet five main criteria: novelty of the product or process (within the economic activity, in Estonia, in the world), creativity, uncertainty about achieving the result, systematicity and transferability (the solution can be used elsewhere).
Enterprise with logistics innovation – an enterprise that during the reference period introduced or improved business process support activities, including logistics, delivery and distribution methods.
Enterprise with new good – an enterprise that introduced a completely new good on the market during the reference period. It does not matter whether the good was new only for the enterprise or for the market.
Enterprise with new service – an enterprise that entered the market with a completely new service during the reference period. It does not matter whether the service was new only for the enterprise or for the market.
Enterprise with product innovation new to the enterprise – an enterprise that during the reference period introduced on the market a product that is new to the enterprise itself but which has previously been offered by competitors.
Enterprise with product innovation new to the market – an enterprise that during the reference period introduced on the market a new product which has not previously been offered by any competitors.
Enterprise with product or process innovation – an enterprise that during the reference period introduced on the market a new or improved product that differs significantly from the enterprise’s previous products or services, or introduced a new or improved business process. Excluded are other innovations, e.g. R&D (research and development), and enterprises that started innovation during the reference period but abandoned it before the end of the reference period.
Expenditure on capital goods for innovation (acquisition of machinery, equipment, software, intellectual property rights) – acquisition costs of machinery, equipment, buildings, capitalised software and other tangible assets for innovation. Excludes in-house R&D (research and development) costs. Includes capitalised assets produced by the enterprise itself (e.g. capitalised software, capitalised development costs), excluding R&D.
Expenditure on personnel involved in innovation – costs related to personnel training: costs of outsourced courses, travelling and accommodation costs related to training, cost of study materials, labour costs related to in-house training, administrative costs of in-house training centres and other innovation costs.
Improved product (good or service) – changes made in the features or functions of existing products. Upgrades can add new features or improve the existing ones, e.g. quality, durability, economy of use, affordability, convenience, user-friendliness, etc. Not all features or functions need to be upgraded during product upgrades.
Innovation active enterprise (old definition) – based on the previous Oslo Manual (OM) 3 definition. An innovation active enterprise is an enterprise that during the reference period introduced on the market a new or improved product that differs significantly from the enterprise's previous products or services, or introduced a new or improved core process, logistics, delivery or distribution method or information and communication technology (ICT). An enterprise that was engaged during the reference period in in-house or outsourced R&D is also considered to be innovation active. Also included are enterprises that started innovation during the reference period but abandoned it before the end of the reference period. Excluded are enterprises that during the reference period introduced or improved the organisation of their business processes or external relations, human resource management, work organisation or marketing. According to OM3, these process innovations were included partly under separate innovations, such as organisational innovation and market innovation. In OM4, they are included under process innovation.
Innovative enterprise – an enterprise that during the reference period introduced on the market a new or improved product (good or service) that differs significantly from the enterprise’s previous products or services, or introduced a new or improved business process, such as a core process, i.e. the production of goods or services, logistics, information and communication technology (ICT), accounting or purchasing process, business process organisation, work organisation or marketing. An enterprise is considered to be innovative if during the reference period it was engaged in in-house or outsourced R&D (research and development), started innovation but abandoned it before the end of the reference period, or whose innovation is still ongoing at the end of the reference period.
Job rotation – temporary work in another subdivision or position. This helps to gain work experience and get to know the specificity of other positions. It is possible rather in larger enterprises or if positions are not too specific.
Marketing innovation – advertising, packaging, pricing, product placement, after-sales services; direct marketing (telemarketing), trade fairs, market research and customer support.
Non-innovative enterprise – an enterprise that did not carry out any innovation during the reference period.
Organisational innovation (old definition) – based on the previous OM3 definition. Organisational innovation is a significant change in an enterprise's business practice, work organisation or communication with other enterprises/institutions, with the aim of increasing the enterprise’s innovation capacity and improving economic indicators (e.g. quality, performance, etc.). Organisational innovation is usually understood as something broader than, for example, merely restructuring a part of an enterprise’s supply chain. According to OM4, organisational innovation is part of process innovation.
Other financial support from an EU institution – direct subsidies from European Union (EU) institutions not obtained through the state budget. Grants co-financed by the Structural Funds and mediated by ministries or foundations are considered state funding.
Other innovation expenditure (excluding research and development (R&D)) – expenditure on services, materials and supplies acquired as part of innovation, on personnel involved in innovation and on capital goods for innovation. Excludes in-house and outsourced R&D expenditure.
Process innovation – introduction of a new or significantly improved production process, delivery method or business process support activity by the enterprise in internal or external activities during the reference period.
Process innovation includes the following business processes:
- the core process, i.e. the production or development of goods and provision of other services;
- logistics, delivery and distribution methods;
- introduction of information and communication technology (ICT);
- accounting and purchasing process;
- organisation of business processes or external relations;
- work organisation, human resource management;
- marketing, advertising, packaging, pricing, after-sales activities.
Process innovation (old definition) – based on the previous OM3 definition. Introduction of a new or significantly improved production process, delivery method or production support activity by the enterprise during the reference period. Excluded are enterprises that have implemented business process, work organisation or marketing innovations.
Process innovative enterprise – an enterprise that during the reference period improved or introduced a new core process for the production of goods or provision of services or new business process support activities (e.g. logistics, information and communication technology (ICT), accounting or purchasing process, business process organisation, work organisation, human resource management and marketing). Other innovations are not taken into account here.
Product innovation – a new good or service placed on the market by an enterprise during the reference period that differs significantly from the enterprise’s previous products in terms of characteristics or use. This includes significant changes to product specifications, components, materials, bundled software, user-friendliness or other functionalities.
Product innovative enterprise – an enterprise that during the reference period introduced on the market a new or improved product (good or service) that differs significantly from the enterprise's previous goods or services. Other innovations are not taken into account here.
Public innovation funding – paid via foundations or ministries and other state institutions. Includes co-financed funding from the European Union Structural Funds.
Standardised product – ready-made good or service for a wider customer base.
Technical consultations – any consulting activity that involves any kind of technical, scientific or engineering information, e.g. engineering services, measurement and testing services, industrial design services, research and development (R&D) services, certification services, installation, refitting and retrofitting services.
Total innovation expenditure – all expenditure incurred on innovation, e.g. in-house and outsourced R&D expenditure, expenditure on personnel, services, materials, supplies, capital goods for innovation.
Trade secret – used to protect the intellectual property of an enterprise that cannot be protected by patents or copyrights. Trade secrets are protected with confidentiality agreements, requirements for keeping trade secrets in employment contracts and internal rules.
Work organisation innovation – human resource management, personnel recruitment, training, workplace organisation, payroll management.
Enterprises with at least 10 persons employed and whose main activity according to EMTAK 2008 (NACE Rev. 2) falls within divisions 5–33, 35–39, 46, 49–53, 58–66, 71–73
List of active enterprises whose economic activities are covered by the survey. The list is generated from the Business Register for Statistical Purposes.
Estonia as a whole
Counties – the estimated share of innovative enterprises
DIRECTLY APPLICABLE LEGAL ACTS
Decision No 1608/2003/EC of the European Parliament and of the Council of 22 July 2003 concerning the production and development of Community statistics on science and technology (Text with EEA relevance)
Commission Regulation (EC) No 1450/2004 of 13 August 2004 implementing Decision No 1608/2003/EC of the European Parliament and of the Council concerning the production and development of Community statistics on innovation
Commission Implementing Regulation (EU) No 995/2012 of 26 October 2012 laying down detailed rules for the implementation of Decision No 1608/2003/EC of the European Parliament and of the Council concerning the production and development of Community statistics on science and technology
OTHER LEGAL ACTS
Statistical Office of the European Union (Eurostat)
Organisation for Economic Co-operation and Development (OECD)
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The news release “Innovation” over two years. The news release can be viewed on the website of Statistics Estonia in the section Uudiskiri (in Estonian).
Data are published under the subject area “Economy / Science, technology and innovation” in the statistical database at http://pub.stat.ee.
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Data serve as input for statistical activity 50201 “Sustainable development indicators”.
Oslo Manual. Guidelines for collecting, reporting and using data on innovation.
A quality report is sent to Eurostat for each period of the innovation survey.
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Ministry of Education and Research
The Government of the Republic
Ministry of Economic Affairs and Communications
University of Tartu
Tallinn University of Technology
Praxis Centre for Policy Studies
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The type of survey and the data collection methods ensure sufficient coverage and timeliness.
Variation coefficients for important variables
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The data are comparable with countries which collect data based on the common OECD methodology, which is also used by Eurostat.
Data on key issues are comparable over time. Additional questions vary from one survey to another.
The main indicators of the innovation survey and annual statistics of enterprises are coherent. There are coherence problems with the Research and Development survey data, as the questionnaires may be filled in by different persons in the enterprise.
Calculation of enterprise innovation indicators is based on OECD methodology (Oslo Manual), which ensures coherence, comparability over time and across countries. OECD methodology is also used by Eurostat.
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The published data may be revised if the methodology is modified, errors are discovered, new or better data become available.
The population is 3,700 objects. The sample includes 2,100 objects.
Stratified simple random sampling by economic activity and size class of the enterprise (number of employed persons) is used. The population includes industrial enterprises (excl. construction) and service enterprises with at least 10 employed persons in selected activities.
The Estonian Patent Office data on registered patent applications, trademarks and industrial design rights.
DATA FROM OTHER STATISTICAL ACTIVITIES
Data from statistical activity 20300 “Financial statistics of enterprises (annual)” are used.
Over two years
Data are collected and the submission of questionnaires is monitored through the web channel for electronic data submission. The questionnaires have been designed for independent completion and include instructions and controls. The questionnaires and information about data submission are available on the website of Statistics Estonia in the section Questionnaires.
Data are collected with the annual statistical questionnaire “Enterprises innovation survey”.
Arithmetic and qualitative controls are used in the validation process, including comparison with other data. Before data dissemination, internal coherence of the data is checked.
The data of relevant support of Enterprise Estonia (EAS) are used for checking the received data.
In case of missing or unreliable data, missing values are imputed according to set rules. Variables and statistical units which were not collected but which are necessary for producing output are calculated. New variables are calculated by applying arithmetic conversion to already existing variables. This may be done repeatedly; the derived variable may, in turn, be based on previously derived variables.
For statistical units weights are calculated, which are used to expand the data of the sample survey to the total population.
Microdata are aggregated to the level necessary for analysis. This includes summation of data according to the classification and calculating various statistical measures, e.g. average, median, dispersion, etc. The collected data are converted into statistical output. This includes calculating additional variables.