Kadri Ukrainski

Comparing the organization of public research funding in central and eastern European countries

In this article, we present a comparative analysis of the organization of public funding of research in three central and eastern European countries. We first compare the organization of funding agencies, the portfolio of funding instruments and, finally, the repartition of funding by beneficiaries. Further, we identify the main structural characteristics of the funding systems, by looking at features like sectoral divisions, level of delegation and the role of different institutional levels in the management of funding. Against a widespread conception of research policies in central and eastern European countries converging towards a western-style model, our study displays profound differences between the considered countries, related to history but also to contextual factors in the reform phase. Copyright , Beech Tree Publishing.

Competition for public project funding in a small research system: the case of Estonia

The extensive literature that deals with competition for research funding has focused on the mechanisms and outcomes of funding, but has not systematically studied the allocation of funding among research performers across different financing instruments. The analysis of a small research system on the basis of funding volumes disaggregated according to beneficiaries and funding instruments showed a very high and growing degree of market concentration strengthening existing dominant research institutions. The focus of research policy on competitive funding mechanisms has been successful for the purposes of research quality, but has also resulted in disadvantages such as weak options for steering the research and the misalignment of the research system with societys needs. Copyright , Beech Tree Publishing.

Sources of Innovation in the Estonian Forest and Wood Cluster

The paper aims to identify the role of different sources of innovation for the Estonian wood sector. Comparing data from survey of Innovation in Estonian Enterprises 1998 2000 with similar Finnish data reveals that linkages in Estonian forest and wood cluster are relatively weaker regarding innovation sources. Universities and research institutes are the weakest part identified in the knowledge flows of the emerging Estonian wood cluster. Technological capabilities of Estonian wood and forest industries have passed the absorption phase and entered the adoption phase, but still the absorptive capacities remain relatively low, as indicated by the high importance of internal innovation sources and the low intensity of using R&D institutions and universities as innovation sources. We applied binary logit model in order to identify the role of different sources of innovation for the Estonian wood sector. Suppliers are the most significant partner for innovation cooperation and also the second innovation source after internal sources. Customers are more used for innovative products and by those companies that lack knowledge about markets. The internal information of concerns is not diffused to other firms. The future development of the Estonian forest and wood cluster should be oriented towards the development of high end production capacities in the value network. This requires joint efforts of the government and industries, as well as collaboration oriented behaviour of Estonian companies.

Role of University–Industry–Government Linkages in the Innovation Processes of a Small Catching-up Economy:

During the transformation process from a command economy, the extraordinary statist university–industry–government (UIG) linkages model was replaced by an extreme version of laissez-faire relationships. A more modern interaction-based UIG model could be implemented only by changing the whole national innovation system of catching-up economies. The national innovation systems of countries with a command economy past share common problems that prevent them from developing the UIG linkages. The still-dominating linear innovation model should be replaced with the interactive and learning-based approach as these countries need to improve their levels of innovation diffusion management and networking. In addition, a symbiotic approach to the balance of high-tech and low-tech industries is needed. Managerial and organizational competence should be improved and treated at the same level of importance as technological competence.

Hidden Unemployment in Estonia: Experience from the Early Years of Transition (1989‐1996)

The aim of this article is to develop and deepen the discussion on this topic and analyse the methods of measuring hidden unemployment. This is important for giving an adequate overview of the situation of the labour market in Estonia and the scope of hidden unemployment and its development in the transition period. The following tasks are set to achieve this aim: to estimate different components of hidden unemployment in Estonia and to analyse the factors that influence this phenomenon in Estonia and thence form policy conclusions. In the analysis data from the Estonian Labour Force Survey (ELFS 97) carried out in 1997 are examined. Three logit models were calculated (for unemployed, underemployed and discouraged persons). The most important findings were that there are no general factors which could influence open and hidden unemployment at the same time, and that the factors influencing the components of hidden unemployment differ—underemployment is probably influenced more by economic factors and discouragement more by psychological factors.

The contribution of R&D to production efficiency in OECD countries: econometric analysis of industry-level panel data

While research and development expenditures are considered a key to productivity growth and development, the question remains whether their contribution could depend on the particular countries’ and industries’ actual development levels and positions in global value chains. In this paper we analyse the relative contribution of R&D to the efficiency (productivity) on the industry and sector level in OECD countries using industry-level panel data and the stochastic frontier production function approach. The results indicate that R&D capital productivity enhancing effect increases with the level of technology; physical capital shows the opposite effect. The distribution of efficiency across industries shows remarkably different variances, reflecting different degrees of competition and the structure of value chains. Among different external factors, the share of labour with tertiary education at the national level showed a strong positive correlation with efficiency, while for other external factors the effect varied across the industries. The findings imply that in the design of R&D policy measures the structure of the industries needs to be considered.

Networks and Local Mileus as a Furniture Industry Innovation Platform

Innovation is increasingly recognised as a key factor in environmental protection and sustainable development in forestry and forest-based industries. This volume provides a comprehensive theoretic ...

Role of Policies and National Programmes on Innovations in Timber-frame Construction

The market share of timber frame construction has increased in many European countries after the revision of national building regulations, implementation of national development programs as well a ...

Path Dependency Factors Affecting the Innovation Systems of Latecomer Countries: Comparison of Central and Eastern Europe, Asia, and Latin America

This chapter views the path dependency and latecomer country concepts within the framework of national innovation systems (NISs). It intends to identify major lessons for Central Eastern European (CEE) countries in building up their NISs based on the experience of Asian and Latin American countries. The general conclusion is that there is a need for active public sector intervention in establishing and renewing the innovation systems process (knowledge production, diffusion, and use). The experience of the Latin American economies indicates that it is a necessary but insufficient precondition to change their NISs and initiate a rapid catching-up process. In addition, several preconditions should be fulfilled – supply of skilled labor, coherence in society, moderate income inequality, growing level of social capital, etc. However, at the core of transition rests institutional change. The major recommendation for CEE governments is to learn how Asian countries create and sustain the capabilities of their changing institutions, both formal and informal, within their NISs. The creation of those capabilities is crucially important for CEE countries.

The evolution of governance reforms under conditions of political business cycles

The authors present a model for an evolutionary approach of governance reforms under conditions of political business cycles. The model is based on a political business cycle model by Frey (1976, 1978 and 1979), which is elaborated further by using the ideas of Saviotti and Pyka (2004 and 2011). By combining these two approaches to a new one, a process for governance innovation in the public sector is introduced.