Innovation

Innovation refers to the launch of a new or significantly improved product or service or the introduction of a new business process. The aim of innovation is to create value and gain a competitive advantage, which will benefit the enterprise’s development and increase productivity, simultaneously contributing to economic growth.

Product or process innovation can involve the application of new technological solutions, a new combination of existing technologies or the application of the knowledge available to the enterprise. However, innovation may not always result in the launch of a new product or service or improvement of a completed production process. Innovation activities may also be abandoned before the end result is achieved.

Innovation statistics provide information on

  • how many Estonian enterprises are engaged in innovation;
  • what kind of innovation is pursued by enterprises;
  • what is the strategy of enterprises in innovation development, use of resources and innovation cooperation.

On the basis of innovation statistics, it is possible to analyse economic development trends, make decisions affecting the society and formulate innovation policy. The data are collected through the innovation survey of enterprises and allow comparing Estonian enterprises and their innovativeness with other European Union and OECD countries.

 

Share of innovative enterprises 73.1 %
2018
Number of innovative enterprises 2 801
2018
Number of innovative enterprises in industry 1 422
2018
Number of innovative enterprises in service activities 1 379
2018
Total expenditure on innovation 0.95 billion euros
2018
Turnover from new products 3.93 billion euros
2018
Turnover from new products in industry 2.35 billion euros
2018
Turnover from new products in service activities 1.58 billion euros
2018
Enterprises by type of innovativeness, 2016–2018
Enterprises by type of co-operation, 2016–2018
Enterprises by type of process innovation, 2016–2018
Industry Service activities Total
Process innovative enterprises 965 1 074 2 039
New or improved methods for producing goods or providing services (including developing) 604 466 1 070
New or improved logistics, delivery or distribution methods 252 383 635
New or improved methods for information processing or communication 390 513 903
New methods for accounting or other administrative operations 317 430 746
New business practices for organising procedures or external relations 229 331 560
New methods of organising work responsibility, decision making or human resource management 480 500 981
New marketing methods for promotion, packaging, pricing, product placement or after sales services 379 498 877

Enterprises by type of product innovation, 2016–2018
Industry Service activities Total
Product innovative enterprises 966 928 1 894
New goods 543 352 895
Improved goods 768 470 1 237
New services 199 440 638
Improved services 302 692 994

Innovation expenditure of enterprises, 2018
Unit: thousand euros
Industry Service activities Total
Own personnel working on innovation 12 608 45 915 58 523
Services, materials, supplies purchased from others for innovation 22 299 70 471 92 770
Capital goods for innovation 439 168 79 711 518 880
Expenditure on R&D performed in-house 54 939 144 872 199 810
Expenditure on R&D contracted out 9 713 36 403 46 115