The share of innovative enterprises in Estonia is growing

The Community Innovation Survey is conducted in European countries every two years, with the most recent survey covering the reference period 2022–2024. Innovation means the introduction of new or significantly improved products or services or the implementation of improved business processes. A product or process innovation could mean the introduction of new technical solutions, the innovative combination of existing and already used technologies, or the application of knowledge available within the enterprise.

Hanno Evard, analyst at Statistics Estonia, said that innovative enterprises play an increasing role in Estonia, as shown by the survey data. “The share of innovative enterprises was 64.6%, up from 53.2% in the previous survey. There was a rise in both product and process innovations, but it was the number of product innovative enterprises that showed significant growth,” he added.

“On the one hand, increased innovation may have been supported by favourable economic conditions and the provision of state support which encouraged enterprises to invest in product innovation. On the other hand, enterprises are also affected by economic uncertainty; it forces enterprises to increase efficiency and introduce process innovations in order to remain competitive internationally,” explained Evard.

The number of innovative enterprises grew the most in wholesale trade

The share of innovative enterprises was the highest in financial and insurance activities and in information and communication. But the number of innovative enterprises was the highest in manufacturing and in wholesale trade. “The level of innovation also rose the most in wholesale trade, where the share of innovative enterprises increased from 37% to 66%. This suggests that any enterprise can be successful in innovation, even if the enterprise is not directly involved in production,” noted Evard.

There was only one economic activity where the share of innovative enterprises decreased compared to the previous survey – in mining and quarrying, this share fell from 58% to 46%.

Expenditure on innovation is decreasing

Compared with previous surveys, the expenditure on innovation has decreased steadily, with the exception of expenditure on research and development (R&D). Based on the most recent survey, Estonian enterprises spent about 302 million euros on innovation. Investments in R&D have continued to grow: according to the 2024 survey, expenditure on R&D exceeded expenditure on innovation other than R&D for the first time.

The Community Innovation Survey data show that, throughout the years, the turnover of innovative enterprises has been greater than the turnover of non-innovative enterprises. In the last three surveys, there has also been a gradual increase in the share of turnover from new products and services – it was 18.7% of total turnover in the latest reference period.

It is a priority in Estonia and in the European Union to support innovation in enterprises by creating better business conditions. Business owners and managers need data about their enterprise for executive decision-making, and policymakers similarly need data about the level and type of innovation in the country. This allows developing data-driven policies and measures that are more efficient and more supportive of enterprises in terms of encouraging innovation.

Data as at 8 June 2026 are published. The indicator values may change if there are any revisions made in the data sources after this date.

See also the innovation section on our website. More detailed data have been published in the statistical database. More information about the survey methodology is available on our website.

When using Statistics Estonia’s data and graphs, please indicate the source.

For further information:

Annaliisa Köss
Media Relations Partner
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee

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