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Sources Of Innovation In The Estonian Forest And Wood Cluster

  • Kadri Ukrainski
  • Urmas Varblane

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.

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Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 36.

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Length: 43 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:mtk:febawb:36
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  1. Keld Laursen & Ammon Salter, 2003. "Searching Low and High What Types of Firms use Universities as a Source of Innovation?," DRUID Working Papers 03-16, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  2. Freel, Mark S., 2003. "Sectoral patterns of small firm innovation, networking and proximity," Research Policy, Elsevier, vol. 32(5), pages 751-770, May.
  3. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  4. Edward M. Bergman & Edward J. Feser, . "Industrial and regional Clusters: Concepts and Comparative Applications," Wholbk, Regional Research Institute, West Virginia University, number 19 edited by Randall Jackson, Winter.
  5. Leon A.G. Oerlemans & Marius T.H. Meeus & Frans W.M. Boekema, 1998. "Do Networks Matter for Innovation? The usefulness of the economic network approach in analysing innovation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 89(3), pages 298-309, 08.
  6. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 1998. "Do networks matter for innovation? The usefulness of the network approach in analysing innovation," Other publications TiSEM b5b01e96-86f7-4fdf-95c0-4, Tilburg University, School of Economics and Management.
  7. von Hippel, Eric, 1976. "The dominant role of users in the scientific instrument innovation process," Research Policy, Elsevier, vol. 5(3), pages 212-239, July.
  8. Viitamo, Esa, 2003. "Knowledge-intensive Services and Competitiveness of the Forest Cluster," Discussion Papers 845, The Research Institute of the Finnish Economy.
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