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Sources Of Innovation In The Estonian Forest And Wood Cluster

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  • Kadri Ukrainski
  • Urmas Varblane

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.

Suggested Citation

  • Kadri Ukrainski & Urmas Varblane, 2005. "Sources Of Innovation In The Estonian Forest And Wood Cluster," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 36, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:36
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    References listed on IDEAS

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    1. 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.
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    6. 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.
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    9. 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, August.
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    Cited by:

    1. Jaan Masso & Priit Vahter, 2008. "Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 240-261.
    2. Yuri Simachev & Mikhail Kuzyk & Vera Feygina, 2014. "The nature of innovation channels at the micro level: evidence from Russian manufacturing firms," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(2), pages 103-123, May.

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