Describe the main features of the policy/measure:
Development of cultural and creative industries (CCI) became a part of the "Estonian Entrepreneurship Growth Strategy 2014-2020" under the section of competitive position. It is stated in the strategy that before taking into account the potential of this sector, one should be aware of the fact that the number of companies operating in the field of CCI is small among the startup companies – too many good ideas never find their way to business. The existing companies are usually either micro- or small companies, who are unable or lack initiative to grow. The sector lacks opportunities for product development and creating innovative solutions. The domestic market is small and the weak export capacity does not allow entering and staying in foreign markets. Entrepreneurs outside the creative circles do not know much about the possibilities of CCI and often the benefit that could be created in cooperation is overlooked. Due to its innovative approach, CCI have a great potential to create added value for the rest of the economy. Therefore, it is important to facilitate the development of CCI and to connect it with the rest of the economy. The development of CCI is based on three pillars: raising awareness and offering training, supporting startups and their incubation period, supporting development of export capacities. Companies who need a range of services and special environment for comprehensive development have opportunity to operate in creative incubators. Companies with growth potential receive sectoral services in order to help them to carry out their product and service development and marketing activities in order to enter foreign markets. Special measures are designed to increase exports and use all of the potential of CCI to operate successfully in foreign markets and to increase the value added of creative companies. Creative Industries Development measure focuses on following aspects: • supporting incubators, business accelerators and CCI development centers; • increasing the export capacity of CCI enterprises; • initiating joint development projects between CCI and other sectors’ enterprises; • developing the CCI infrastructure and technological capacity; • increasing awareness about creative economy and developing entrepreneurial knowledge and skills. The aim of the measure is to bind the potential of cultural and creative sector with entrepreneurship in order to increase the number of new enterprises with ambitious business models in CCI, increase the export potential and capability of enterprises in CCI, and make CCI enterprises to create added value for other sectors by developing business models, products and services, marketing and sales.
What are the results achieved so far through the implementation of the policy/measure?:
Implementation of the CCI development measure has been constantly monitored in order to make relevant adaptions for achieving the results and impact. More than 2 300 companies operating in CCI have received financial or non-financial support, 45 companies have started to export, 40 companies have entered new export markets and 90 companies have expanded their activities in existing export markets. As a result, the number of exporters in CCI has grown and income generated from different foreign markets has increased. Companies operating in other sectors are still rather passive to involve CCI companies in order to increase their value added. CCI companies have not used their full potential to contribute to the regional development and to focus on cultural and creative crossovers to stimulate innovation, economic sustainability and social inclusion. In order to assess the economic situation in cultural and creative sectors and the impact of the measures, regular studies are carried out at four-year intervals. Next study will be conducted during 2021 and it will provide the information also about the total number of exporting companies in the sector, value added per employee in CCI companies, income per company in CCI compared to the average in Estonia, and income per employee in CCI companies compared to the average in Estonia.
Financial resources allocated to the policy/measure in USD:
Total budget allocated for the period 2014-2020 is 20 million Euros (23,6 million USD) and the measure is financed from the European Regional Development Fund.
Partner(s) engaged in the implementation of the measure:
|Name of partner||Type of entity|
Ministry of Culture of the Republic of Estonia
Ministry of Economic Affairs and Communication of the Republic of Estonia
Ministry of Finance of the Republic of Estonia
Has the implementation of the policy/measure been evaluated?:
If yes, what are the main conclusions/recommendations?:
In 2019-2020 Tallinn Technical University (TalTech) and Tartu University evaluated the effectiveness of entrepreneurship and innovation support (including CCI development measure) in the Operational Programme for Cohesion Policy Funds 2014-2020. The overall objective was to determine whether the support provided during the period of 2014-2018 corresponded to the needs and expectations. The result of the evaluation was an independent assessment of the relevance, efficiency, effectiveness, reciprocal and combined impact. Also, the sustainability of the entrepreneurship support and a determination of how entrepreneurship support funded from structural funds has influenced productivity, export, employment, education cooperation between education and research institutions and companies and regional economic development in Estonia was assessed. In addition, the functioning of the implementation system was evaluated and proposals were made for increasing the efficiency of the system in the current and following EU funding period. It was concluded that combining financial support and subsidized services in CCI development amplifies the results. The implementation of CCI development measure has contributed to increase of productivity and has had a positive influence on the value-added and/or turnover per employee. Supported projects and activities were also seen to have a positive influence on equity capital and total assets. Export capacity development activities have increased CCI export capability: on average, export revenue increased in the case of every other company that responded to the survey. A total of 68% of the companies that participated in the survey used the support to launch export and 85% for exporting to new destination markets. A positive shift in growth of export capability of beneficiaries was also noted by representatives of CCI development support structures (i.e. incubators, accelerators, competence centers), where the scope of the international network has expanded. Most projects or actions funded are not aimed at closer cooperation between CCI and R&D institutions or the public sector. Cooperation is still taking place mainly between CCI companies and to a certain extent, with other economic sectors. Synergy with other fields has been created by Enterprise Estonia, business accelerators, development and competence centers and mainly in the field of architecture, audiovisual and content creation. In the regional perspective, the impact of the CCI development support was rather small as the predominant part of the recipients are located in or nearby capital or in the biggest towns.