Estonian Research and Development, Innovation, and Entrepreneurship (RDIE) Strategy 2021-2035

The Estonian Research and Development, Innovation, and Entrepreneurship (RDIE) Strategy 2021-2035 is a comprehensive framework designed to enhance Estonia’s economic productivity and societal well-being through research-driven, innovative, and entrepreneurial initiatives. The focus on digital transformation, sustainability, and high-value entrepreneurship will drive long-term economic growth and societal progress.

General objective

The overarching aim is to ensure that research, development, innovation, and entrepreneurship work together to:

• Increase the well-being of Estonian society.
• Enhance the productivity of the economy.
• Provide competitive and sustainable solutions for Estonia’s and global development needs.

Key strategic axes

The strategy is structured around three main axes:

1. Research system
   • Strengthening scientific excellence and ensuring research institutions remain globally competitive.
   • Improving research infrastructure for better accessibility and international collaboration.
   • Enhancing the attractiveness of research careers to retain talent and prevent brain drain.
2. Knowledge transfer
   • Increasing the capacity of businesses to adopt research-driven innovations.
   • Encouraging collaboration between research institutions and enterprises.
   • Strengthening technology and knowledge transfer mechanisms.
3. Business environment
   • Creating an ecosystem conducive to entrepreneurship and high-value enterprises.
   • Supporting technology-driven start-ups and innovative businesses.
   • Promoting international competitiveness and exports.

Strategic goals and indicators

The strategy aims for significant improvements in key areas by 2035:

Main areas of action

To achieve the outlined goals, Estonia will focus on the following actions:

1. Strengthening the research system

• Increase funding stability for research institutions.
• Improve researcher career pathways and attract international talent.
• Ensure state-of-the-art research infrastructure is accessible to businesses.
• Promote international research cooperation.

2. Enhancing knowledge transfer

• Encourage university-industry partnerships.
• Develop intellectual property protection frameworks.
• Expand spin-off entrepreneurship programs.
• Increase applied research funding to bridge the gap between academia and industry.

3. Improving the business environment

• Develop high-tech start-ups and scale-ups.
• Foster digital and green transformation in businesses.
• Reduce bureaucratic burdens for entrepreneurs.
• Increase regional economic activity and employment opportunities.

RDIE focus areas (Smart Specialisation)

The strategy prioritizes five focus areas where Estonia has the potential for global impact:

1. Digital solutions across all areas of life
2. Health technologies and services
3. Valorisation of local resources
4. Smart and sustainable energy solutions
5. A viable Estonian society, language, and cultural space

These areas are expected to drive innovation, economic growth, and societal well-being.

Budget allocation

The strategy has a planned budget of approximately €7.9 billion, distributed across:

• Research system – €2.83 billion
• Knowledge transfer – €3.36 billion
• Business environment – €1.71 billion

Implementation and monitoring

• The Ministry of Economic Affairs and Communications (MoEAC) and the Ministry of Education and Research (MoER) are responsible for execution.
• Regular impact assessments will be conducted to adjust the strategy as needed.
• A R&D Coordination Council will oversee progress and cross-sectoral cooperation.