This article introduces ten steps that the Estonian government has planned to raise the competitiveness of the country’s economy by furthering research and development activities.<\/p>\n
The basis of our success to date has been the implementation of a liberal economic policy and the country’s efforts in the IT field. At the same time, the expenditures of Estonian enterprises on R&D make up only 0.25% of GDP, which is almost six times less than the EU average. A total of 6% of industrial manufacturing sales is tied to innovative new products. Estonia’s government is now working on raising the share of R&D in the GDP to 1.5% by 2006 and 3% by 2014. The government is also working on making the private sector’s research and development expenses larger than the state’s. To incite the private sector to increase R&D spending, it is considered an important financial priority to support studies of an applied nature and technological development programs. In addition, the government this year will introduce a renewed R&D strategy, which will draw on all interested parties from universities to entrepreneurs.<\/p>\n