DEFINITIONS

Innovation – the market introduction of a new or a significantly improved product (goods/service) by enterprise, the implementation of new or significantly improved production process (incl. distribution method, etc.) within enterprise, as well as significant changes in organisation or marketing.

Innovation activity the acquisition of machinery, equipment, buildings, software, and licenses; engineering and development work, training, marketing and any research and development activities when they are specifically undertaken to develop and/or implement a product or process innovation.

Innovative enterprise enterprise that has introduced during years under consideration a product, process, organisational or marketing innovation, or has been involved in innovation activities.

Marketing innovation significant change in sales or distribution methods of enterprise’s goods or services, including changes in design and packaging.

Non-technological innovation – organisational or marketing innovation.

Organisational innovation – significant change in the enterprise’s business practice, workplace organisation or external relations with other enterprises/organisations intended to increase the capability to innovate or the enterprise’s performance (quality, efficiency, etc.) Organisational innovation is usually understood in a broader sense than for instance just the restructuring of a certain part of supply chain.

Process innovation process innovations appear in industry as well as in services in the form of new or significantly improved production process, distribution method or ancillary support activity. Process innovation includes changes in techniques, equipment and/or software implemented with the intention to improve the quality of products, to decrease the unit costs of production or delivery, to reduce the environmental impact or improve safety.

Product innovation goods or service that differs significantly from products previously produced by enterprise with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics. The product innovations are directly sold to consumer differing in that way from process innovations.

Technological innovation – product or process innovation.

Technologically innovative enterprise enterprise that introduced during years under consideration a product innovation to market or implemented a process innovation or was involved some other innovation activity (in connection with abandoned or ongoing innovation projects, as well as the research and development can be the main activity of an enterprise or its part).

METHODOLOGY

The statistical survey “Innovation Survey of Enterprises” for the years 2014–2016 is the implementation of European Community survey (Community Innovation Survey – CIS) in Estonia. The survey is carried out in all European Union Member States simultaneously. The frame of the survey covered all enterprises with at least 10 employees in industry (excl. construction) and selected economic activities in services (see the list of activities under Classifications). The survey was total for enterprises with at least 50 employees, and in the case of enterprises with less than 50 employees the random stratified sampling was applied.

To evaluate the enterprise’s innovativeness it was asked about its activities during a three-year – 2014–2016 – period. If an enterprise did not introduce innovations during this period or did not have any innovative activities, it was considered non-innovative. New enterprises born in 2014 or later could be non-innovative only if they were established on the basis of enterprise existing earlier or were part of such enterprise and this process did not involve any innovative activities. For a totally new enterprise its products and processes are always innovative.

The methodology of innovation statistics is based on the OECD manual “Proposed Guidelines for Collecting and Interpreting Innovation Data. Oslo Manual“. The last but one version of the manual was published in 1992 and the last one in 2005. Since CIS 2008 the surveys follow the 2005 version. Therefore the term innovativeness started to include non-technological innovations, in earlier surveys it was limited to technological ones. As well it must be taken into account the change in the coverage of the survey to above mentioned business activities.

CLASSIFICATIONS

Surveyed economic activities as described in EMTAK 2008 – Estonian Classification of Economic Activities based on NACE Rev.2

05

Mining of coal and lignite

06

Extraction of crude petroleum and natural gas

07

Mining of metal ores

08

Other mining and quarrying

09

Mining support service activities

10

Manufacture of food products

11

Manufacture of beverages

12

Manufacture of tobacco products

13

Manufacture of textiles

14

Manufacture of wearing apparel

15

Manufacture of leather and related products

16

Manufacture of wood and wood products and plaits, except furniture

17

Manufacture of paper and paper products

18

Printing and reproduction of recorded media

19

Manufacture of coke and refined petroleum products

20

Manufacture of chemicals and chemical products

21

Manufacture of basic pharmaceutical products and pharmaceutical preparations

22

Manufacture of rubber and plastic products

23

Manufacture of other non-metallic mineral products

24

Manufacture of basic metals

25

Manufacture of fabricated metal products, except machinery and equipment

26

Manufacture of computer, electronic and optical products

27

Manufacture of electrical equipment

28

Manufacture of machinery and equipment n.e.c.

29

Manufacture of motor vehicles, trailers and semi-trailers

30

Manufacture of other transport equipment

31

Manufacture of furniture

32

Other manufacturing

33

Repair and installation of machinery and equipment

35

Electricity, gas, steam and air conditioning supply

36

Water collection, treatment and supply

37

Sewerage

38

Waste collection, treatment and disposal activities; materials recovery

39

Remediation activities and other waste management services

46

Wholesale trade, except of motor vehicles and motorcycles

49

Land transport and transport via pipelines

50

Water transport

51

Air transport

52

Warehousing and support activities for transportation

53

Postal and courier activities

58

Publishing activities

59

Film, video and TV programme production, sound recording and music publishing

60

Programming and broadcasting activities

61

Telecommunications

62

Computer programming, consultancy and related activities

63

Information service activities

64

Financial service activities, except insurance and pension funding

65

Insurance, reinsurance and pension funding, except compulsory social security

66

Activities auxiliary to financial services and insurance activities

71

Architectural and engineering activities; technical testing and analysis

72

Scientific research and development

73

Advertising and market research

 

Used activity groups:

B-M73_INN

Innovation core activities total

B-E

Industry (excl construction)

B

Mining and quarrying

C

Manufacturing

C10–11

manufacture of food products, beverages and tobacco

C13–15

Manufacture of textiles, wearing apparel, leather and related products

C16–18

Manufacture of wood, paper, printing and reproduction

C19–22

Manufacture of petroleum, chemical, pharmaceutical, rubber and plastic products

C24–25

Manufacture of basic metals and fabricated metal products, except machinery and equipment

C26–30

Manufacture of computer, electronic and optical products, electrical equipment, motor vehicles and other transport equipment

C31–33

Manufacture of furniture and other manufacturing, repair and installation of machinery and equipment

E36–38

Water supply; sewerage, waste management and remediation activities

E39

D

G46-M73_INN

G46

Remediation activities and other waste management services

Electricity, gas, steam and air conditioning supply

Innovation core services activities

 

Wholesale trade, except of motor vehicles and motorcycles

H49–53

Transportation and storage

J

Information and communication

K

Financial and insurance activities

M71–73

Architectural and engineering activities; technical testing and analysis; scientific research and development; advertising and market research

MORE DATA

Innovation in Estonian Enterprises 1998–2000. Foundation Enterprise Estonia, 2002

http://www.eti.ee/user_upload/innovation_in_estonian_enterprises.pdf.

Innovation in Estonian Enterprises. Foundation Enterprise Estonia, 2007

http://www.digar.ee/arhiiv/et/raamatud/4932.

Heinlo, A. (2008). Innovaatilisus jätkuvalt heal tasemel. Teadus- ja arendustegevus 2006. Innovativeness continuously measures up. Research and development 2006

Heinlo, A. (2009). Innovation scoreboard: Estonia’s advantages and shortcomings. – Quarterly Bulletin of Statistics Estonia. No 1, pp 32–57.

Heinlo, A. (2010). Innovativeness under magnifier. – Quarterly Bulletin of Statistics Estonia. No 3,
pp 53–73.

Heinlo, A. (2012). Innovativeness pays off. – Quarterly Bulletin of Statistics Estonia. No 3,
pp 6–28.

CONTACT PERSON

Tiina Pärson

Economic and Environmental Statistics Department

Tel +372 625 9233

tiina.parson@stat.ee

Updated:  18.04.2018