Estonian Development Fund – on the road to the next economy
The Estonian Development Fund, whose founding was governed by an act passed on 15 November 2006 by the Riigikogu, was in principle created to fulfil two functions: to help the state make long-term strategic decisions – fulfilling the so-called future monitoring function and supporting the financing of innovative, high-risk ideas.
As of spring 2007, the basic operations for launching the fund have been completed. The activity of the Fund is based on legislation. The Fund is a legal person under public law, with a supervisory board. A director general was hired in a public competition, and other people are being hired incrementally. The primary tasks for the launch period have been agreed. Before the end of 2007, the precise work schedules must be completed and be discussed in the Fund supervisory board with regard to both development monitoring and organizing risk capital investments. The first major monitoring project has been launched, aimed at shaping the dynamics of Estonia’s economic structure in order to derive the necessary measures for accelerating structural changes. Most of these are associated with decisions and initiatives related to educational policy and for financing education. Both the development monitoring and the risk capital aspects are fundamental goals.