Governance of innovation policy: the case of Estonia
Tallinn University of Technology and
PRAXIS Center for Policy Studies
Abstract. An innovation
policy aims at encouraging entrepreneurs to invest in the spheres that are
characterised by high value added and intensive application of technologies and
skills (industry; knowledge-intensive business services), since the latter
ensure economic growth and improvement of the living standard. An innovation
policy uses the establishment and implementation of priorities as its tools.
This publication asserts that, firstly, the competitiveness of the Estonian
economy has been declining since the middle of the 1990s and, secondly,
Estonian innovation policy lacks measures to contribute to the improvement of
competitiveness. The innovation policy of Estonia fails to serve its purpose.
This is primarily due to the governance approach to the innovation policy,
which emphasises competition and partnership and has led to renunciation of
the establishment and implementation of priorities.