FINAL CLUSTER ANALYSIS - Kohtla-Järve

5.1. KeY FInDIngs In IDa-vIrumaa
5
The current Estonian policy is mainly based on horizontal
measures, related to entrepreneurship, export promotion,
innovation and R&D support, foreign direct investments
and access to capital. Future development of state measures
partly is planned to be realised through the cluster approach,
as previously revealed by the Estonian R&D Strategy
“Knowledge-based Estonia” (2002-2006). One of the
instruments that can apply here is the creation of so-called
Competence Centres. Sectoral studies have been conducted,
which have shown that the ties between the enterprises
within the clusters, as well as the enterprises’ ties with
research institutions, are weak, using the argument that Estonia’s
case concerns operation within international (North
European) rather than domestic clusters and therefore the
policy of supporting the clusters cannot be efficient. Most
of the EU studies consider Estonia quite undeveloped in
terms of clustering activities. The emergence and development
of clusters that would create competitive advantages
has been restrained by the lack of a critical mass of strong
enterprises acting in one sector, which amplified the need
for Estonian enterprises to find and develop cooperation
with enterprises outside Estonia.
During this structural assistance period, 2007-2013 entrepreneurship
is among supported fields. Key goal is to introduce
the cluster-based approach in less knowledge and
technology-intense sectors and traditional branches of
the economy. For raising the innovation capacity in traditional
economic sectors and building critical mass through
enterprise cooperation (incl. with R&D institutions), it will
be important to implement cluster specific approach. The
development of cooperation networks joining enterprises,
R&D institutions and local municipalities will be supported.
In the clusters that have been activated by the “bottom
up” approach, inter-enterprise cooperation in the fields of
training, product development and export marketing will
be supported.
Support measures to the cluster-specific needs will be ensured,
such as cooperation between enterprises in the foreign
market participation will be supported sharing of orders,
formation of export consortiums and joint marketing.
Documentary
Survey results
Final Cluster Analysis
Estonia has now several good opportunities to improve its
innovation capacity:
The development of a new R&D Strategy for 2007 -2013
and the new round of Structural Funds;
The ongoing development and launching of new innovation
support schemes targeting the existing company
base and its needs to become more competitive;
The launching of a State venture capital fund in 2005
and the increased financial support for national R&D
infrastructures.
The development of Estonian innovation policy is mainly
obstructed by two factors: Insufficient awareness of the
need for an innovation policy among politicians, different
understanding of innovation policy among various ministries
and the lack of resources.
In 2008 Estonia Ministry of Economics & Communication
as a responsible body for implementation Operational Programme
for Development of Economic Environment proposed
that grants for development of innovative clusters
under Capability of innovation and growth of business priority
would be made available in October 2008, as Regulation
of the measure will enter into force. Total amount of
100 million EEK (6,3 million EUR) for 2008-2013 will be allocated
towards cluster initiatives in Estonia.
Documentary survey revealed that the largest economic
spheres in Ida-Virumaa regions are: shale oil refining, electricity
and heating power production, chemical industry,
trade, construction and building of materials, woodworking,
metalworking, food processing, tourism. The backbone
of Ida-Virumaa industry is formed with oil shale production
and power engineering complex, internationally competitive
production, as well as development service sectors: logistics
and tourism. The most essential strategic priorities for
economic development in North-East Estonia according to
Ida-Virumaa County Development Plan (2005-2013) are:
Power production, • Power production – in addition to
generating power based on local raw material - oil-shale,
it is also one of the most rapidly developing regions in
Estonia using wind energy for power production;
21