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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure EE-2023-38/3322 – measures in Estonia

State support for businesses to conduct applied research

Riik toetab ettevõtete rakendusuuringuid 15 miljoni euroga

Country Estonia , applies nationwide
Time period Open ended, started on 19 September 2023
Context Green Transition, Digital Transformation
Type Other initiatives or policies
Category Reorientation of business activities
– Change of production/Innovation
Author Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound
Measure added 25 October 2023 (updated 29 November 2023)

Background information

The aim of the measure is to support businesses to conduct applied research in order to develop innovative technologies, processes, products or services, test new materials or gather knowledge about technological feasibility. Entrepreneurs face greater risks when taking the first steps in their product development process, which is why the state chose to support businesses in this phase.

In autumn 2023 a fifth round of applications opened.

Businesses can apply for the programme through Kredex (foundation established by Ministry of Communication and Economics).

Content of measure

The programme is open for all companies registered in the Estonian business registry, regardless of their size or years of operation, that are not currently in difficulties. The programme consists of consultations and funding for an applied research project.

The research projects should be in the following categories:

  • Digital solutions for any area of life: artificial intelligence, ma­chine learn­ing, the in­ter­net of things, any­thing cy­ber-re­lated;
  • Health technology and services: personal med­i­cine, e-health;
  • Upcycling local resources: wood, food, coal and nanotech­no­log­i­cal ap­proaches to ma­te­ri­als tech­nol­ogy;
  • Smart and sustainable energy solutions: energy production and use efficiency and resource efficiency, climate-neutral energy production and renewable energy, flexibility and storage technologies and smart grids.

During the evaluation of the grant applications, extra points are awarded to projects that are aimed at achieving the goals of sustainable development.

The maximum support amount for one project is €2 million, the minimum is €250,000. The share of the support is up to 70% of the project volume, which depends on the size of the company and the level of technological readiness of the project. The entire budget for the measure this round is €15 million from national funds.

Use of measure

According to a member of Kredex management, the programme has been very popular. As of September 2023, €112 million have been awarded to support the development activities of 126 companies. Development projects include for example creating new carbon materials from carbon dioxide or developing mycoprotein production technology were supported.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement as case not in social partner domain Unknown
Form Not applicable Not applicable

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

  • Unknown
  • Main level of involvement: N/A

Involvement

No evidence of involvement available.

Views and reactions

No evidence of views or reactions available.

Sources

  • 15 September 2023: Riik toetab taas ettevõtete rakendusuuringuid 15 miljoni euroga (mkm.ee)

Citation

Eurofound (2023), State support for businesses to conduct applied research , measure EE-2023-38/3322 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2023-38_3322.html

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