Governance of innovation policy: the case of Estonia

Rainer Kattel

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.