Sources of Innovation in the Estonian Forest and Wood Cluster

University of Tartu Economics and Business Working Paper No. 36-2005

43 Pages Posted: 18 Jul 2005

See all articles by Kadri Ukrainski

Kadri Ukrainski

University of Tartu - Faculty of Economics and Business Administration

Urmas Varblane

University of Tartu - Faculty of Economics and Business Administration

Date Written: May 16, 2005

Abstract

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.

Keywords: Sources of Innovation, forest and wood sector, CEE

JEL Classification: O31, L73, C51

Suggested Citation

Ukrainski, Kadri and Varblane, Urmas, Sources of Innovation in the Estonian Forest and Wood Cluster (May 16, 2005). University of Tartu Economics and Business Working Paper No. 36-2005, Available at SSRN: https://ssrn.com/abstract=757185 or http://dx.doi.org/10.2139/ssrn.757185

Kadri Ukrainski (Contact Author)

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Rd. 4-A214
Tartu 51009, 51009
Estonia

Urmas Varblane

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Road 4 - A226
Tartu
Estonia
+372 7 376 361 (Phone)
+372 7 376 327 (Fax)

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