DEFINITIONS

Enterprise with innovative activities — enterprise that introduced during years under consideration a product innovation to market or implemented a process innovation or had some other innovation activity (incl. abandoned or ongoing innovation projects).

Innovation — the market introduction of a new or a significantly improved product (good/service) by enterprise, as well the implementation of new or significantly improved production process (incl. distribution method etc.) within enterprise. The innovation is based on the results of new technological developments, new combinations of existing technologies or utilisation of other knowledge acquired by enterprise.

Innovative activity — the acquisition of machinery, equipment, 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 introduced during years under consideration a product innovation to market or implemented a process innovation.

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

Marketing innovations do not include:

- routine or seasonal changes (as clothing fashion);

- advertising except for first-time use of new media.

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.

Organisational innovations do not include:

- changes in management strategy that do not involve the changes in organisational structure;

- implementation of new technology in a certain unit (for instance the producing unit), it is rather connected to process innovation.

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.

Process innovation does not include:

- insignificant changes or improvements;

- rise in productivity due to the addition of the equipment or logistic system already implemented;

- innovations, the major part of which is the new kind of relation with the customer — those belong to product innovation.

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.

The product innovations do not include:

- insignificant changes or improvements;

- routine category raises;

- seasonal changes (for instance clothing fashion);

- customization of product to the needs of a single customer that does not involve significant changes in comparison to products offered to other customers;

- changes in design not accompanied with changes in technical specifications or functional characteristics.

- renaming or new packaging of products for a new market;

- trading of new goods or services acquired from other enterprises for reselling purposes except for the case when those goods or services are developed and produced by a foreign subsidiary.

METHODOLOGY

The statistical survey “Innovation Survey of Enterprises” for the years 2004–2006 is the implementation of European Community survey (Community Innovation Survey — CIS) in Estonia. The survey is carried out in all European Union member and candidate states simultaneously. The frame of the survey covered all enterprises with at least 10 persons employed 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 persons employed, and in the case of enterprises with less than 50 persons employed the random stratified sampling was applied if a stratum consisted of more than 50 enterprises. As a result of the use of weighted sums, the indicators — number of enterprises — are presented in database as fractional numbers.

 

To evaluate the enterprise’s innovativeness it was asked about its activities during a three-year — 2004–2006 — period. If an enterprise did not have during this period any innovative activities, it did not introduce product innovations into market and did not implement process innovations, it was considered non-innovative. New enterprises born in 2004 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 innovations.

 

For the survey under consideration the organisational and marketing innovations were not included among innovative activities but were handled separately.

 

The methodology of innovation statistics is based on the OECD manual “Proposed Guidelines for Collecting and Interpreting Innovation Data. Oslo Manual“. The penultimate version of the manual was published in 1992 and the last one in 2005. CIS 2006 follows the 1992 version, taking in only some details from the 2005 one. As a result, the data collected are comparable with results of CIS3 and CIS4 performed in 2001 and 2005, the only difference from CIS3 being the lack of the enterprises with research and development economic activity in the frame.

CLASSIFICATIONS

Surveyed economic activities as described in EMTAK 2003 – Estonian Classification of Economic Activities based on NACE Rev.1

 

10

Mining of coal and lignite; extraction of peat

11

Extraction of crude petroleum and natural gas; service activities incidental to oil and gas extraction, excluding surveying

12

Mining of uranium and thorium ores

13

Mining of metal ores

14

Other mining and quarrying

15

Manufacture of food products and beverages

16

Manufacture of tobacco products

17

Manufacture of textiles

18

Manufacture of wearing apparel; dressing and dyeing of fur

19

Tanning and dressing of leather; manufacture of luggage, handbags, saddlery, harness and footwear

20

Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials

21

Manufacture of paper and paper products

22

Publishing, printing and reproduction of recorded media

23

Manufacture of coke, refined petroleum products and nuclear fuel

24

Manufacture of chemicals and chemical products

25

Manufacture of rubber and plastics products

26

Manufacture of other non-metallic mineral products

27

Manufacture of basic metals

28

Manufacture of fabricated metal products, except machinery and equipment

29

Manufacture of machinery and equipment n.e.c.

30

Manufacture of office, accounting and computing machinery

31

Manufacture of electrical machinery and apparatus n.e.c.

32

Manufacture of radio, television and communication equipment and apparatus

33

Manufacture of medical, precision and optical instruments, watches and clocks

34

Manufacture of motor vehicles, trailers and semi-trailers

35

Manufacture of other transport equipment

36

Manufacture of furniture; manufacturing n.e.c.

37

Recycling

40

Electricity, gas, steam and hot water supply

41

Collection, purification and distribution of water

51

Wholesale trade and commission trade, except of motor vehicles and motorcycles

60

Land transport; transport via pipelines

61

Water transport

62

Air transport

63

Supporting and auxiliary transport activities; activities of travel agencies

64

Post and telecommunications

65

Financial intermediation, except insurance and pension funding

66

Insurance and pension funding, except compulsory social security

67

Activities auxiliary to financial intermediation

72

Computer and related activities

742

Architectural and engineering activities and related technical consultancy

743

Technical testing and analysis

 

Used activity groups:

 

Industry

10–14

..mining and quarrying

15–37

..manufacturing

40–41

..electricity, gas and water supply

 

Services

51

..wholesale trade and commission trade

60–64

..transport, storage and communications

65–67

..financial intermediation

72, 742, 743

..computer and related activities, architectural and engineering activities, technical testing and analysis

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.mkm.ee/failid/Innovation_in_Estonian_Enterprises__CIS4_2.pdf.

Heinlo A. (2008). Innovaatilisus jätkuvalt heal tasemel. Teadus- ja arendustegevus 2006.

Innovativeness continously measures up. Research and development 2006

CONTACT PERSON

Tiina Pärson

Enterprise and Agricultural Statistics Department

Tel +372 625 9233

tiina.parson@stat.ee

Updated:  17.09.2015