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Factsheet for measure EE-2018-40/2701 – measures in Estonia

Digital diagnostic

Digidiagnostika

Country Estonia , applies nationwide
Time period Temporary, 01 October 2018 – 14 September 2020
Context Digital Transformation, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Change of production/Innovation
Author Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound
Measure added 23 June 2022 (updated 21 October 2022)

Background information

With the aim of alleviating bottlenecks related to industrial digitalisation and automation, which has been a bottleneck for Estonian economic development, a support measure was developed to raise manufacturing and mining companies' awareness and capability of digitalisation. The measure is financed by the Ministry of Economic Affairs and Communications and provided by the Enterprise Estonia (called the Estonian Business and Innovation Agency as of 2022).

Content of measure

The measure consists of a grant which is provided for a company to assess its readiness and potential for digitalisation and automation and steps to take to develop their production processes. The provider of such diagnostic tool (digital diagnostic provider) can be chosen by the grant recipient. The service consists of interviews, seminars, learning the current processes and procedures at the company, analysing the data and documentation. Based on the gathered information, a thorough report is compiled bringing out the potential for the specific company to go more digital/automatic, which are the steps to be taken, and what are the costs and profits.

Digital diagnostics must include all the following:

  • An overview of the bottlenecks in the strategic management and business model of the company (production planning and human resources, quality system and product development management, procurement process, delivery process, product and semi-finished product and raw material return and after-sales processes).
  • An assessment of the priority of solving the bottlenecks.
  • Estimating the cost of solutions for digitalisation and automation of bottlenecks.
  • An assessment of the payback period and the impact on the economic performance of the solutions proposed by the bottlenecks.

The maximum amount of the grant depends on the sales revenue of the business year preceding the application for the grant of enterprise. If the enterprise’s sales revenue for the previous year is the following:

  • €200,000–1 million, then the grant is €5,000.
  • €1–5 million, then the grant is €10,000.
  • Over €5 million, then the grant is €15,000.

The maximum share of the project cost is 70% and at least 30% must be self-financing.

The total budget available is €1.1 million since October 2018 until December 2021.

Use of measure

Between November 2018 and May 2020, 116 companies received the grant. The average size of the grant during the period was €9,987.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
Other social actors (e.g. NGOs)
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sectors and occupations

    • Economic area Sector (NACE level 2)
      B - Mining And Quarrying B5 Mining of coal and lignite
      B6 Extraction of crude petroleum and natural gas
      B7 Mining of metal ores
      B8 Other mining and quarrying
      B9 Mining support service activities
      C - Manufacturing C10 Manufacture of food products
      C11 Manufacture of beverages
      C12 Manufacture of tobacco products
      C13 Manufacture of textiles
      C14 Manufacture of wearing apparel
      C15 Manufacture of leather and related products
      C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
      C17 Manufacture of paper and paper products
      C18 Printing and reproduction of recorded media
      C19 Manufacture of coke and refined petroleum products
      C20 Manufacture of chemicals and chemical products
      C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
      C22 Manufacture of rubber and plastic products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals

This case is not occupation-specific.

Sources

  • 01 May 2019: EAS-i 2018. a tegevusaruanne (Activity report of EAS 2018) (www.eas.ee)
  • 01 April 2020: EAS-i 2020. a tegevusaruanne (Activity report of EAS 2020) (www.eas.ee)

Citation

Eurofound (2022), Digital diagnostic, measure EE-2018-40/2701 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2018-40_2701.html

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