Tallinn City Council Regulation no. 50 Tallinn Enterprise and Innovation Strategy ANNEX

Transcription

1 Tallinn City Council Regulation no. 50 Tallinn Enterprise and Innovation Strategy ANNEX Tallinn Enterprise and Innovation Strategy Table of Contents INTRODUCTION BASES FOR THE STRATEGY DEFINITIONS AND PRINCIPLES TALLINN S STRATEGIC POSITION GLOBAL PRACTICES AND CHALLENGES GLOBAL PRACTICES CHALLENGES RELATED TO THE DEVELOPMENT OF ENTERPRISE AND INNOVATION IN TALLINN MISSION, VISION AND OBJECTIVES KEY DEVELOPMENT SECTORS IMPLEMENTATION PROCESS FOR THE STRATEGY FOUR PILLARS OF THE STRATEGY AND THE ACTION PLAN KNOWLEDGE AND SKILLS COOPERATION INTERNATIONAL OPENNESS MOTIVATIONAL URBAN SPACE REFERENCES... 22

2 INTRODUCTION As a whole, Estonia s society and economy has developed successfully during the last ten years. However, as a result of the economic crisis, the structure of the economy is changing. On the one hand, this is important for a growing and successful economy, but on the other hand, it requires greater efforts be expended to ensure continuing development, the achievement of a better position in the international value chain and increasing wellbeing. New economic growth is based on differentiation, unique skills, productivity and new investments. The aim of the Enterprise and Innovation Strategy (hereinafter the strategy) is to create better opportunities for the development of enterprise and innovation in Tallinn, and in this way, to increase the competitiveness of Tallinn as a city and region. In the strategy, the city competitiveness is defined as the ability to create the preconditions for the constant development of new jobs with great added value resulting in increased productivity in many areas of the economy, which, in turn, increases actual incomes and social cohesion of the residents. This strategy determines the developmental trends for enterprise and innovation, consolidates the activities of the various fields of activity into an integrated base document, and creates the preconditions for the long-term planning of the city s policies and activities in various fields of activity. This is Tallinn s second innovation strategy, which also includes the city s main activity strategies related to the development of enterprise that are in force today: 1) Tallinn Innovation Strategy ; 2) Tallinn Small Business Development Programme and 3) Tallinn Cluster Development Programme In the new integrated strategy, the experiences and lessons of the previous period ( ) and suggestions from the best experts have been taken into consideration. A background survey was conducted to determine the strategy s objectives, focuses and activities. The following were analysed in the course of the survey: a) Tallinn s strategic position; b) global practices; c) activities of Tallinn s Innovation Strategy ; in addition, interviews with entrepreneurs and roundtables were conducted. In the strategy, enterprise is defined as the process that creates something new and useful, in the course of which time and effort is expended and risks are taken to achieve monetary and personal wellbeing. In the strategy, innovation is defined as the successful implementation of something new and useful, which is recognised as a significant change that is aimed at development. Generally, the goal of innovation, and its result, is a competitive advantage for the specific company. In today s economy, a competitive advantage is provided by unique knowledge, which no one or only a few others have and which results in the development of demand. The basis for Tallinn s Enterprise and Innovation Strategy is the national framework document called the Estonian Entrepreneurial Growth Strategy and Estonia s research, development and innovation strategy called Knowledge-based Estonia The strategy is also based on Tallinn s main strategic documents, such Strategy Tallinn 2030 and the Tallinn Development Plan for , which envision Tallinn as an internationally attractive tourist destination and an innovation-minded, balanced and safe urban environment, which is the architect of a new economy. The strategy also considers Tallinn s sector-based and district development plans. The temporal dimension of the strategy is based on the European Union s financial perspective, which is valid until 2020 and based on which European Union Structural Funds are made available to Estonia. These comprise a significant financial source from the viewpoint of the strategy. The compilation of the strategy has been a long-term process, which started in 2012, within the framework of the international Cross-Innovation project with support from the Interreg IVC programme. The main partner in drawing up the bases for the strategy was the Innopolis Consulting. The strategy is based on local and international research, interviews with entrepreneurs (enterprise support structures, clusters, professional associations, universities), and discussions during The strategy has considered the experiences of the larger cities of the Baltic Sea Region related to supporting innovation. Since the strategy is a dynamic document, the list of activities that have been suggested for implementation is not final, but will be supplemented and updated based on the changes in the economic situation. 2

3 1. BASES FOR THE STRATEGY 1.1 DEFINITIONS AND PRINCIPLES Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence. (Hisrich, Peters, Shepherd ). Innovation is the successful implementation of something new and useful, which is recognised as a significant change that is aimed at development (Roolaht ). The Tallinn Enterprise and Innovation Strategy must: be based on Tallinn s strategic position (geographical location, demography, level of development) and the problems related to enterprise and innovation; be harmonised with the activities related to the development of enterprise and innovation at the national level and in the private sector, by supplementing those aspects that are most effective in the city. In addition to the city s activities, the achievement of the vision and objectives of the strategy are impacted by the activities of the state and the private sector. Therefore, the division of roles must be based on the efficiency of the various stakeholders in the execution of the activities. The private sector is most efficient in activities that can be transferred to the functioning competitive environment and/or the cost-effectiveness of which can be measured separately from other activities, and which are not accompanied by significant external impact (e.g. provision of capital necessary for enterprise). The state is relatively more effective in legislation and creating a beneficial support system for enterprise (e.g. tax-related legislation, development of knowledge and skills). The city s effectiveness is similar to that of the state, but the city can maintain a narrower focus; for example, the city s relative effectiveness in greater in the promotion of partnerships (bringing the enterprise stakeholders together). In addition, Tallinn has the potential to set an example for other Estonian cities and therefore maintain its leading position in the planning of innovational activities and the integration of innovative ideas into city management. Figure 1. The components of enterprise and innovation development and the relative capability of the stakeholders Partnership Capital Knowledge and skills Support systems, infrastructure ems and <EU <State <City <Private sector 1 Hisrich, R.; Peters, M.; Shepherd, D., Entrepreneurship Roolaht, T., Innovatsioon kui majanduse edutegur, Eesti majandus. Lõimumine Euroopa ja globaalses kontekstis, Rand, R.; Arrak, A. (eds.).tartumaa: Avatar Holding OÜ, EAS

4 1.2 TALLINN S STRATEGIC POSITION In order to assess its strategic position, Tallinn was compared to the capitals of the neighbouring countries (Moscow, Helsinki, Stockholm, Oslo, Copenhagen, Riga, Vilnius, Warsaw, and Berlin). Similarly to Helsinki, Stockholm, Oslo, Copenhagen and Riga, Tallinn is open to the sea. The shortest distances to other capitals by ship/car is between Tallinn and Helsinki (89 km), St. Petersburg (363 km) and Riga (308 km). Similarly to Helsinki, Tallinn is also close to Stockholm (distance of 498 km), which is one of the fastest growing European cities. As far as Moscow, the distance is (1056 km) similar to the distance between Moscow and Riga or Vilnius. In summary, Tallinn s geographical advantage over the other Baltic capitals is in the Scandinavian direction and over the Scandinavian capitals in the direction of Russia. Table 1. Distances between selected capitals as the crow flies (in blue) and by land/sea (in black) (Source: Google Maps) Tallinn Moscow Helsinki Stockholm Tallinn Moscow Helsinki Stockholm Oslo Copenhagen Riga Vilnius Warsaw Berlin St. Petersburg Oslo Copenhagen Riga Vilnius Warsaw Berlin St. Petersburg As of 1 January 2013, the population of Tallinn was 419,830 people, of whom 53% are Estonians, 38% Russians, 4% Ukrainians and 5% other nationalities. Compared to the capitals of the neighbouring countries, Tallinn is most similar to Riga and Vilnius (a large percentage of Russian-speaking residents). Since there are few Russian-speaking residents in the Scandinavian capitals, Tallinn is in a good position to be a link between the Scandinavian and Russian markets. In addition, good Finnish language proficiency provides the residents of Tallinn with the opportunity to be a link between our southern neighbours and Finland. 2. GLOBAL PRACTICES AND CHALLENGES 2.1 GLOBAL PRACTICES In the course of the background survey conducted for the Tallinn Enterprise and Innovation Strategy, the national innovation strategies of Sweden, Finland, Norway, Denmark, Germany, the U.K., Austria, and the U.S., and their capitals, were examined. They all include three to eight (activity/development) directions. 4

5 From the activities standpoint, the main emphasis is on infrastructure, knowledge and skills, cooperation, the creation of development platforms (development centres, incubators, clusters, and other support structures) and international capability. Based on the analysis, two aspects need to be dealt with more thoroughly in this strategy: 1) a detailed survey is needed of Tallinn s international competitive situation, which will help to define the focuses of the strategy and create Tallinn s unique selling proposition; 2) information on the innovative ideas that can help to achieve the objectives of the strategy is required. 2.2 CHALLENGES RELATED TO THE DEVELOPMENT OF ENTERPRISE AND INNOVATION IN TALLINN In order to assess the current situation and the more significant problems, interviews were conducted with the representatives of the following organisations: Tallinn Science Park TEHNOPOL, Tallinn Business Incubators, Tallinn Creative Hub, Enterprise Estonia, the Ministry of Economic Affairs and Communications, Estonian Healthcare Cluster, Estonian Logistics Cluster, FinanceEstonia, Estonian Academy of Music and Theatre, Estonian ICT Cluster, Tallinn University of Technology, Estonian Academy of Arts, IT Service of the Tallinn City Office and the Tallinn Urban Planning Department. The main problems identified by analysing the interviews are summarised in the following table. Table 2. Significant challenges related to the development of enterprise and innovation in Tallinn The entrepreneurs limited developmental capability, i.e. their knowledge and skills, is often insufficient for implementing innovations. Little information exchange and cooperation between entrepreneurs and enterprise support structures. Limited international competence and the entrepreneurs weak contact networks in foreign markets. When the city orders products or services, it seldom considers innovative solutions. The lack of resources limits the development of the modern infrastructure needed for the development of enterprise. 3. MISSION, VISION AND OBJECTIVES MISSION: to create better opportunities for the rise of enterprise development and innovation in Tallinn and thereby to increase the competitiveness of Tallinn as a city and a region. VISION: By 2018, Tallinn is an internationally open city that stimulates entrepreneurship and creativity, which promotes cooperation among the enterprise stakeholders and the development of knowledge and skills. To increase the measurability to the vision, three general objectives have been established for the strategy, which need to be achieved in cooperation with the state and private sector. 5

6 Table 3. General objectives of the Tallinn Enterprise and Innovation Strategy 1. By 2018, the employment rate of 20- to 64-year olds in Tallinn is 82%. An 82% employment rate will mark the return to the pre-crisis level (78.1% in ). The growth of the employment rate will indicate the extent of the citizenry s involvement. This objective conforms to the Estonian, the goal of which is to increase the employment rate of 20- to 64-year-olds to 76%. 2. In 2018, the labour productivity per worker in Tallinn companies (20 or more employees) based on net added value is at least 30,800. Labour productivity, which takes into account the growth of sales revenues, changes in profits, and labour costs, is a good composite indicator of innovation development. The objective conforms to the Estonian Entrepreneurial Growth Strategy, the first general objective of which is to increase productivity. The objective will be achieved when labour productivity increases proportionately with the growth of average wages forecasted by the Ministry of Finance 4 (labour production of 20,300 in ). This means that both company revenues and cost effectiveness (exc. labour costs) must increase at the given average rate, thereby also ensuring a uniform sustainable capability to keep the relative (percentage of) growth of wages at a level similar to the Estonian average. 3 Statistics Estonia TT240: Employment rate 4 The spring economic forecast (completed on 4 April 2013) which is valid until 2017 and which has been extended to 2030 based on the ministry s assessments. 5 Statistics Estonia EM004: Revenues, costs and profits of companies (20 and more employees). 6

7 3. In 2018, companies invest at least 1.38 billion in fixed assets. It has been assumed that the investments will increase proportionately with the increase in labour productivity ( 0.91 billion in ). The growth of investments supplements the labour productivity objective, by providing an assessment of the companies endeavours to find developmental opportunities. 4. KEY DEVELOPMENT SECTORS The objective of the key development sectors is to focus developmental activities on the areas with the greatest potential and added value compared to the other areas of activity. When determining the key development sectors, Tallinn s position, budget, and strategies for support structures were taken into consideration. The following figure provides a summary of the key sectors with the main fields of activity: Figure 2. Key development sectors SERVICE INDUSTRIES 1. Creative industries 2. Tourism 3. Transport and logistics 4. Health services 5. Financial services FUTURE TECHNOLOGIES 1. Health technologies 2. Mechatronics 3. Environmental technologies Information and communications technologies The first key direction is service industries, which provides approximately 4/5 of the added value of Tallinn s GDP and its prioritisation would mean the further development of the city s strengths. The second prioritised direction is the development of future technologies. Future technologies include hardware and software solutions, which have a great potential to improve the quality of life and make everyday activities more effective. ICT horizontally through other sectors: this sector can be considered to be Estonia s most promising sector in this decade. It is helped by a strong entrepreneurial base, as well as the knowhow and readiness of universities to develop in cooperation with businesses. The development of the sector has reached a phase where greater possibilities are hidden in the implementation of the technologies in other sectors, i.e. ICT can help other sectors to be more efficient (Development Fund 2013). Therefore, the prioritised development of the sector is important because it helps the development of other fields of activity. Creative industries: creative industries are a sector that creates new ideas and innovation. It is also a support sector for other entrepreneurial sectors, and plays an indispensible role in the creation of 6 Statistics Estonia EM017: Investments in fixed assets of companies (20 or more employees) 7

8 internationally competitive products. The importance of the creative industries increases when Estonian companies must orient themselves to foreign consumers, and the dominance of subcontracting in the Estonian export structure declines. If in the case of subcontracting, connections with Estonia s creative industries are almost nonexistent, then in a situation where Estonian companies must orient themselves to foreign consumers, the importance of these connection increases considerably. 7 Considering the importance of the fields of activity in service industries in regard to GDP and their significant export potential for Estonia, the various creative industries could have much to offer. Tallinn is in a special position when it comes to the development of creative industries, since most of the clients in this field are located in the vicinity of Tallinn; Tallinn s consumers have more average purchasing power; and the cooperation partners for those active in the creative industries are located in Tallinn. During the last few years, Tallinn has been working on developing an environment suitable for creative industries (Tallinn Creative Hub, creative incubators). Efforts to increase the synergy between the various centres need to be continued. Health technology and services: the demand for healthcare services is increasing throughout the world due to the aging of the population (Development Fund 2013). Longer life expectancy, changes in population structures and household models, along with people s higher expectations related to the quality of life, affect the models for the provision of healthcare services throughout the developed world 8 and the need to find new solutions for healthcare systems in order to ensure sustainability has sharply risen to the fore. In Estonia, the first steps are being taken for the development of healthcare services that include information technology solutions with participation in the following international projects: Virtu (virtual elderly care services for the Baltic Sea islands); Dreaming (the monitoring of the medical status and safety of the elderly in their homes); and Innocare (improving the quality of life of the elderly living at home and increasing their safety with the help of technology). Health technology products and services are created for the global market, but this presupposes certification and long-term testing. Tallinn s ICT infrastructure is well developed and the community is small compared to the world s largest cities, giving the city a relative advantage in the development and testing of e-health technologies. Financial services: the financial sector has become a central component of global economic activity, the asset volumes of which exceed the world s GDP. In the context of regional diversity, the European Union s developmental trend in financial services is focused on more uniform market regulations and a more open market, which would provide smaller Estonian companies the opportunity to enter the European market. The competitive advantages in the field of financial services are comprised primarily of better client service, data management and automation of processing, as well as the ability to provide secure financial transactions. Tallinn is Estonia s financial centre with a strong IT base. By continuing and developing earlier initiatives (e.g. FinanceEstonia), an opportunity to market Estonia s and Tallinn s business environment to international small and large businesses more purposefully and actively could be developed. In addition, the development of the financial sector can help to create jobs with added value and to develop other priority sectors (for instance, logistics). Transport and logistics: Estonia is located in the centre of Northern Europe, surrounded by large cities like Moscow, St. Petersburg, Helsinki, Kotka, Stockholm, Copenhagen, Oslo, Warsaw, Riga, and Minsk. Goods shipped from Estonia can reach 50 million financially sound consumers in 24 hours, and 300 million in 48 hours, which indicates the great potential of this field of activity. The attractiveness of Estonia as a transit country also affects the development of sectors (construction, food industry, rolling stock) and its sustainability depends primarily on changing business models and offering new services which provide sufficient added value in the form of complementary services (resorting, labelling, etc.), and increase the transit volumes, thereby fixing the flow of goods in Estonia. Currently, Estonia has developed into a credible distribution centre for petroleum products a good example is Vopak EOS. 7 Eesti loomemajanduse potentsiaal ja arenguks vajalikud riiklikud toetusmeetmed 8 8

9 This sector depends on the geographic location of its infrastructure (airport, ports, railway junctions), which means that Tallinn is naturally connected to the development of this sector. In addition, it is a sector that creates greater than average added value. Mechatronics: mechatronics is a multi-disciplinary technical field that includes mechanical engineering, electronics, and information technology systems, and which has a great potential for creating solutions that improve operating efficiency. Opportunities exist in Tallinn for the development of sector-based knowledge and skills and for the testing of new solutions. The development of the sector will help to focus attention on Estonia as a developer of high technology and help to bolster Estonia s reputation as a country with smart production and developed information technology. A fully-automated robotic manufacturing system, which can independently produce various high-tech components according to programmed software without any human intervention, has been installed at the Mechatronicum Innovation Centre, located in Tallinn s Tehnopol campus, and is available to mechanics and electronics companies. The centre provides the opportunity to develop international cooperation with well-known companies around the world in the automotive and aviation fields whose potential Tallinn could utilise. Environmental technologies: The more efficient use of resources, which also includes the development of environmental technologies, is the third sector with great growth potential in Estonia. According to the research ordered by the Ministry of the Environment, the following factors are hindering Estonia s sectorbased development: there are more technological skills and knowledge than business skills; intellectual property is generally weak; there is a local focus, and international ambitions and experience are lacking. Yet, environmental technology is one of the four targeted sectors in the strategy of the Tallinn Science Park Tehnopol for , and an important field of activity for the city related to its goal of achieving the title of European Green Capital in In addition to positive environmental impact, the utilisation of environmental technology solutions also provides monetary savings (e.g. passive houses), and Estonia could participate in international networks for their development and play a leading role in the coordination of these activities. 9

10 Additional information The Ministry of Education and Research and the Ministry of Economic Affairs and Communications have initiated the process of preparing a strategy for research and development, as well as innovation, and a strategy for entrepreneurial growth. Both strategies play an important role in smart specialisation. The goal of smart specialisation is to ascertain the entrepreneurial areas that have a higher than average potential for growth and create added value, and provide the opportunity through investments to achieve a competitive edge in research and development activities (Lepik, K. 2013). The European Commission has placed smart specialisation at the centre of its strategies for research, development and innovation and made it a precondition for receiving EU funding. The growth sectors chosen in the course of smart specialisation are the priorities for the financing period (Estonian Development Fund 2013). During this process, a quantitative analysis was conducted to identify the prioritised sectors, under the leadership of Professor Urmas Varblane with the support of the Ministry of Economic Affairs and Communications, Enterprise Estonia and the Estonian Research Council. Eight sectors were identified where Estonia has great economic potential. A qualitative analysis 9 was conducted by the Development Fund in cooperation with companies from the private sector, scientists and professional associations with the goal of find the most promising fields of activity, which also form the basis for the strategies of The Ministry of Education and Research and the Ministry of Economic Affairs and Communications. Analysis shows that the greatest growth potential for the development of the Estonian economy exists in the following three sectors: ICT horizontally through other sectors this sector can be considered to be Estonia s most promising sector in this decade. Entrepreneurship is strong, and on the research side, the readiness for cooperation exists. The development of the sector has reached a phase where the greatest opportunities are hidden in the implementation of technology in other sectors, i.e. ICT can help make other sectors more efficient. (Estonian Development Fund 2013) Health technology and services the demand for health services is increasing around the world along with the aging of the population. The health technology and services sector is very broad, but a large portion of the services are of local nature and there is little possibility for scalability. There are a few examples that prove Estonia s export capability, but if cooperation between science and entrepreneurship can be improved, it is possible to increase the economic impact of the sector. (Estonian Development Fund 2013). More efficient use of resources the topic of the efficient utilisation of resources is very broad, and the concept of a green economy plays a large role. Due to the global increase in population, it is necessary to increase the efficiency of resource utilisation, and Estonia s potential in this area is greatest in a) the enhancement of materials; b) knowledge-based construction; and c) the development of food that promotes health

11 5. IMPLEMENTATION PROCESS FOR THE STRATEGY More important than this strategic document is the implementation of the strategy. The implementation process for the Tallinn Enterprise and Innovation Strategy is based on the following model: Figure 3. Model for the strategy implementation process The compilation of the strategy can only be based on the available information and on assessment of future developments. Since innovation is by definition the implementation of new which entails change, future prospects are constantly developing. Therefore, this strategy is also a developing document that takes trends and developments into account. By following the implementation process shown in the diagram above, a capability is created for responding to the changes that occur in the environment, for eliminating or improving the shortcomings in the plan of action and thereby achieving flexibility. 6. FOUR PILLARS OF THE STRATEGY AND THE ACTION PLAN The strategic action plan is divided into four pillars, which can be viewed as the main factors for achieving the strategic vision and objectives. The pillars are also interconnected and achieving the objectives depends on the reciprocal impact of activities with different focuses and scopes. For the measurement of the success of each individual activity, an expected result has been specified for each activity. Figure 4. Four pillars of the strategy KNOWLEDGE AND SKILLS INTERNATIONAL OPENNESS COOPERATION MOTIVATIONAL URBAN SPACE 11

12 Plan of action The Tallinn Enterprise and Innovation Strategy for includes the city s main activity strategies related to the development of enterprise in force today: 1) Tallinn Innovation Strategy ; 2) Tallinn Small Business Development Programme for and 3) Tallinn Cluster Development Programme and adheres to Tallinn s main strategic documents, such Strategy Tallinn 2030 and the Tallinn Development Plan for The list of activities includes those of the Board, the successful implementation of which presupposes effective cooperation with other city agencies, government institutions, educational institutions and entrepreneurial support structures. The approximate implementation times between 2014 and 2018 are included for each activity in the plan of action. The organiser and source of financing for each activity (CB city budget, FB foundation budget, MEAC Ministry of Economic Affairs and Communications) is also indicated. The description of the activities is the point of departure for drawing up the Board s annual budget, and based thereon, it is possible to coordinate the activities and budget with the other city agencies based on the budget for the current year. 6.1 KNOWLEDGE AND SKILLS ACTIVITY ROLE OF THE CITY EXPECTED RESULT CARRIED OUT BY: FINANCING Increasing the awareness of entrepreneurship Business counselling, business plan consultations; exchange of information related to financing opportunities (incl. seminars, information days) By 2018, satisfaction of the entrepreneurs participating in the projects with the projects provided by the city increases by 10% compared to the previous year entrepreneurial and business support structures Provision of business incubator services in key areas Creating conditions for the growth of start-up businesses The added value of the companies using the provided services increases by at least 75% compared to the average in the field of activity within 2 years Tallinn Business Incubators, Tallinn Science Park TEHNOPOL, Tallinn Creative Hub 2014 FB and/or CB 2015 FB and/or CB 2016 FB and/or CB 2017 FB and/or CB 2018 FB and/or CB 12

13 Simplifying access to capital The provision of financing opportunities for companies participating in incubation programmes (development aid, export grants, Prototron start-up financing, fair grants, grants for creating new jobs, etc.) The added value of the companies using the provided services increases by at least 75% compared to the average in the field of activity within 2 years Tallinn Business Incubators, Tallinn Science Park TEHNOPOL Tallinn Creative Hub Board 2014 FB and/or CB 2015 FB and/or CB 2016 FB and/or CB 2017 FB and/or CB 2018 FB and/or CB Support for the involvement of experts in businesses Financial support for providing experts/mentors/manage ment consultants for companies The added value of the companies using the support increases by at least 75% compared to the average in the field of activity within 2 years Tallinn Business Incubators, Tallinn Science Park TEHNOPOL, Tallinn Creative Hub 2014 FB and/or CB 2015 FB and/or CB 2016 FB and/or CB 2017 FB and/or CB 2018 FB and/or CB Innovation courses: for entrepreneurs, students, elementary and basic school students Increasing the potential of competitions, awarding monetary prizes, assessing business models (Ajujaht business model competition; MEKTORY business model competition; Prototron Prototyping Fund; ENTRUM Youth Entrepreneurship Development Program etc.) 5 10 monetary prizes annually (or the creation of up to 10 feasible business models) entrepreneurial support structures and Tallinn schools of higher education 13

14 Organising and supporting competitions for papers on the applied sciences Support for research work competitions in cooperation with schools of higher education Every year, four projects that have participated in competitions are implemented in practice Tallinn schools of higher education Scholarships for research, which are commissioned by the city Submitting the city s order, granting monetary scholarships At least 10 research papers are implemented in practice Tallinn City Office in cooperation with Tallinn City Enterprise Board and the Tallinn schools of higher education Collecting proposals for the improvement of curricula in cooperation with professional associations Organisation of roundtables and submission of proposals for the improvement of curricula Four new or supplemented curricula per year clusters, educational institutions, professional associations and the Kutsekoda The training of qualified labour for companies to create added value Monetary support for inhouse instructors 100 trainees per year (with 25% having found work in the same field) businesses 14

15 6.2 COOPERATION ACTIVITY ROLE OF THE CITY EXPECTED RESULT CARRIED OUT BY: FINANCING Constant mapping of entrepreneurial activism and innovative activities in the Tallinn region Compiling a regularly updated survey and conducting the necessary research or creating the necessary environment By 2018, 90% of Tallinn s companies consider the availability of information on the entrepreneurial environment to be very good entrepreneurial support structures Creation of an online environment, which: provides a topical survey of the innovation processes in Tallinn; enables interdisciplinary relations (universities + business people + clusters + citizens, etc.); enables ideas to be tracked for the improvement of new and existing processes Organisation of an annual business and innovation week Creation and development of an online environment Preparation, promotion and organisation of an enterprise and innovation By % of the entrepreneurs using the environment, assess the impact of the environment on costefficiency or increasing of revenues to be significant. By 2018, the website is visited by 0.5 million foreign visitors yearly. The week attracts entrepreneurs, investors, researchers from Estonia entrepreneurial support structures umbrella business 15

16 week in cooperation with partners. and the rest of the world. 90% of the participants in the event assess the impact of the event to be significant from the viewpoint of entrepreneurial development organisations, schools of higher education and other Estonian cities Support for the follow-up cluster association projects Promotion of cooperation among the cluster associations Support for the development of visions, strategies and plans of action for new cluster associations Co-financing of joint projects aimed at networking, internationalisation and the development of human resources Club-style meetings, regular information exchange, etc. 6 9 projects per year the developers of cluster centres events per year Board Co-financing of projects 1 3 projects per year EE Promotion of interdisciplinary cooperation between fields of activity in order to improve the Co-financing of projects/activities in order to promote the mutual impact of the sector for the development of innovation 5 10 projects per year Tallinn Business Incubators, Tallinn Science Park TEHNOPOL, Tallinn Creative Hub, 2014 FB and/or CB 2015 FB and/or CB 2016 FB and/or CB 2017 FB and/or CB 2018 FB and/or CB 16

17 competitiveness of sectors (e.g. Mektory, TeamLab, Hubs&Labs programme, Prototron), clusters, universities and, entrepreneurial support structures 6.3 INTERNATIONAL OPENNESS ACTIVITY ROLE OF THE CITY EXPECTED RESULT CARRIED OUT BY: FINANCING Providing soft landing services Creation of an environment that promotes smart immigration 10 Services to simplify the entry of businesses into foreign markets (e.g. free initial market consultations, partner searches, contact events and spaces) Ensuring the availability of public services in English, the consolidation of information Five Estonian companies receive help to enter foreign markets and five foreign companies receive help to enter the Estonian market 90% of public services are available in English Tallinn Business Incubators, Tallinn Science Park TEHNOPOL the Tallinn City Office 2014 FB 2015 FB 2016 FB 2017 FB 2018 FB Organisation of international seminars and providing support for bringing sectorbased experts to Tallinn Financial support for the organisation of seminars or involvement of experts Support the organisation of 5 10 seminars or the involvement of 5 10 experts. Professional associations, clusters and enterprise support structures in cooperation with Tallinn City Enterprise Board 10 Smart immigration bringing highly educated and well-paid specialists to Estonia (Development Fund 2013). 17

18 Bringing sector-based conferences to Tallinn Providing consultations in conference planning, the intermediation of offers, and destination marketing Five international sectorbased conference to Tallinn yearly Board, Estonian Convention Bureau Promoting the international networking of companies Inviting international delegations to Estonia; taking Estonian entrepreneurs abroad to create and proffer international contacts Assist in inviting five international delegations and taking three delegations per year clusters, professional associations and business support structures The joint marketing of the business environment and enterprise stakeholders through the city s marketing channels Production and distribution of informational materials introducing the city s entrepreneurial environment, innovative solutions and investment possibilities 30 activities per year professional associations, clusters, schools of higher education and support structures The creation of the image of Tallinn as a innovative enterprise environment, tourist destination and green capital (incl. responsible enterprise, e-solutions) Marketing activities aimed at foreign media, participation in tourism marketing events, production and distribution of advertising and information materials By 2017, the export sales of Tallinn travel services will reach 942 million. Tallinn will be awarded the title of 2018 European Green Capital Enterprise Estonia and entrepreneurial support structures, EE, EE, EE, EE, EE Increasing the awareness of Helsinki- Tallinn as an enterprising technologybased region Development of cross-border regional cooperation between the city s structural units and entrepreneurial support structures Initiation of one to three innovation-promoting projects with the participation of Tallinn and Helsinki other city agencies and entrepreneurial support structures 18

19 6.4 MOTIVATIONAL URBAN SPACE ACTIVITY ROLE OF THE CITY EXPECTED RESULT CARRIED OUT BY: FINANCING Regularly identifying the expectations of companies and the citizenry Organisation of roundtables and conducting surveys (incl. based on city districts and/or communities) A yearly survey of the citizenry s expectations of the urban space - > in 2018, 90% of Tallinn residents rate involvement in the business environment to be sufficient. Board in cooperation with Tallinn City Office, Tallinn Urban Planning Department and district governments Creation and development of the Smart City concept 11 The organisation of regular events, which bring together the creative community, schools of higher education, entrepreneurial sector and city agencies 1 yearly event -> by 2018, it takes 10% less time for people working in Tallinn to move between their job and their home than it did in 2013 Tallinn Urban Planning Department in cooperation with Tallinn City Enterprise Board Organisation of procurements that promote innovation for the activities needed for the sustainable development of the city Conducting procurements in order to find new solutions for the provision of public services 1 3 procurements yearly -> by 2018, it takes 10% less time for people working in Tallinn to move between their job and their home than it did in 2013 Tallinn Urban Planning Department in cooperation with Tallinn Transport Department and Tallinn City Enterprise Board Development of an environment suitable for enterprise for the creative class Giving city properties into use, enabling favourable rental prices, co-financing projects The number of companies dealing with the creative industries increases 5% annually Tallinn Creative Hub, Tallinn Business Incubators 2014 FB 2015 FB 2016 FB 2017 FB 2018 FB 11 The creation of a strategic plan that includes the integrated medium-term planning (10 years) of industrial, educational and residential areas and the goal of which is to minimise the time spent moving from one destination to another. 19

20 Establishing and financing of innovation centres, supporting their development and involvement in the city s development Construction of transportation connections, development of infrastructure for the continuation of the development of innovation centres (e.g. Tehnopol campus, Technopolis) In 2014, the number of companies in technological parks is 190 (Tehnopol campus) and 300 (Technopolis) Tallinn Municipal Engineering Services Department, Tallinn Transport Department, Tallinn Urban Planning Department in cooperation with Tallinn City Enterprise Board Implementing opportunities for the testing of innovative products and services (Development of the Living Lab concept, which promotes userbased open innovation and its testing.) Co-financing for the improvement of testing opportunities The creation of three new opportunities per year (e.g. in the Tehnopol campus) Tallinn Science Park TEHNOPOL, Tallinn Business Incubators, Tallinn Creative Hub, EE, MKM, TUT etc FB, MEAC 2015 FB, MEAC 2016 FB, MEAC 2017 FB 2018 FB Maintenance of manufacturing in the city that creates great added value Development of industrial parks The strategy s general objective related to investments in companies will be amended. Board, Tallinn Industrial Parks The integrated planning of the coastal area (including cafés, tourist attractions) The creation and implementation of the concept By 2017, Tallinn s sales in the export of travel services will be 942 million Tallinn Municipal Engineering Services Department, Tallinn Transport Department, Tallinn Urban Planning Department in cooperation with Tallinn City Enterprise Board 20

21 Ensuring innovative tourist services (incl. a 3- D model of the Old Town) Monetary resources for ensuring tourist information services Implementation of one to three projects yearly Board in cooperation with the Tallinn Urban Planning Department 21

22 REFERENCES Hisrich, R.; Peters, M.; Shepherd, D., Entrepreneurship Roolaht, T., Innovatsioon kui majanduse edutegur, Eesti majandus. Lõimumine Euroopa ja globaalses kontekstis. Rand, R.; Arrak, A. (eds.). Tartumaa: Avatar Holding OÜ, EE Denmark a nation of solutions. Enhanced cooperation and improved frameworks for innovation in enterprises. 2. Eesti Arengufond. Nutikas spetsialiseerumine kitsaskohtade ja uute võimaluste analüüs (vahearuanne ). 3. Eesti Arengufond. Nutikas spetsialiseerumine kvalitatiivne analüüs (tööversioon ). 4. Eesti ettevõtluse kasvustrateegia 2020 (tööversioon ). 5. Eesti Statistikaameti andmebaas. 6. Eesti teadus- ja arendustegevuse ning innovatsiooni strateegia Teadmistepõhine Eesti (eelnõu). 7. E-lahenduste tulevik Eesti tervishoius ja sotsiaalhoolekandes (taustainfo projekti VIRTU rahvuslikuks in cooperation witheminariks). 8. Innovation Strategy Helsinki Metropolitan Area. 9. Innovation Strategy for the Stockholm region Stockholm 2025: The World s most innovation-driven economy. 10. Joint Innovation Strategy of the States Berlin and Brandenburg (innobb). 11. Region Hovedstadens Innovationspolitik 2020 Nyt, nyttigt, nyttiggjort. 12. Sihtasutus Tallinna Kultuurikatel. Strateegia ja äriplaan (kinnitatud ). 13. Strateegia Tallinn Tallinna arengukava Tallinna innovatsioonistrateegia Tallinna klastriarenduse programm Tallinna Teaduspark Tehnopol. Strateegia (kinnitatud ). 18. Tallinna väikeettevõtluse arendamise programm aastateks The Washington Innovation Economy New Economic Strategy for Prosperity. 20. Uuring: Eesti loomemajanduse potentsiaal ja arenguks vajalikud riiklikud toetusmeetmed. 21. Vienna Looks To The Future Knowledge Means Change Toomas Vitsut Chairman, Tallinn City Council 22