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metrics and background information

Basic concepts of economics

Added value describes the value created in the course of a particular economic activity or process. This is the difference between the revenue from the sale of productsor services and the purchase price of the inputs (e.g. raw materials, subcontracting) necessary for the productionor provision of the service.

Value added = operating profit+ depreciation+ labour costs

Value added per employee = (operating profit+ depreciation+ labour costs) / Number of employees

The productivity of the Estonian economy as a ratio of the European Union average per person employed shows GDP per employee compared to the European Union average,

Gross domestic product (GDP) aggregates the value added created in the entire economy of a country by measuring the market value of all finished products and services over a certain period of time. Thus, it can be said that GDP is the sum of the added value created by all sectors of the economy.

The state of the Estonian economy today and the goals for 2035

Key economic indicatorsYearLevel2035 goalMedia coverage of the economic agreement
Productivity of the Estonian economy202280.8%110%Estonia 2035 strategy
IMD Global Competitiveness Ranking202226th placeTOP15IMD World Competitiveness Ranking
European Innovation Scoreboard rankings2022moderate innovatorInnovation leaderEuropean Innovation Scoreboard
Level of innovation capacity>3Assessment of innovation capacity -
Estonian export volume202286%100%
Number of R&D staff in the private sector20222.23 employees per 1000 inhabitants4.53 employees per 1000 inhabitantsTAIE Development Plan
OECD Talent Attraction Index202321st place / 38 countriesTOP10OECD Talent attractiveness index
Tax burden20233434
TAX Foundation tax system international competitiveness ranking2023First placeFirst placeInternational Tax Competitiveness Index
Foreign Direct Investment Attractiveness Index20228th place6th placeEurostat Inward FDI stocks in % of GDP
Results of the European Central Bank's Capital Access Survey202318% of entrepreneurs think that getting external funding is not a problemAt least 50% of entrepreneurs estimate that getting external funding is not a problemSurvey on the Access to Finance of Enterprises (SAFE)
Public R&D support incentives for the private sector20200.06% of GDP0.2% of GDP OECD Tax incentives for R&D and innovation
State R&D and innovation policy investments20230.78% of GDP1.5% of GDPEstonia 2035 strategy
Private sector R&D and innovation policy investments20221% of turnover2% of turnoverEstonia 2035 strategy

Average value added per employee in different sectors of Estonia

SectorYearValue added per employeeThe target for 2024 could be 10% increase in value added
Estonian average202245 474 €50 021 €
Estonian manufacturing industry202241 200 €45 320 €
It202250 177 €55 195 €
Printing industry202232 909 €36 200 €
Electronics industry202238 336 €41 170 €
Food and beverage industry202233 175 €36 500 €
Woodworking industry202258 800 €64 680€
Hotels and restaurants202220 513 €22 564 €

Media coverage of the economic agreement

Innovation Start-up Chamber of the Estonian Employers' Confederation

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