Changing practices of modes of innovation and interactions

Sammanfattning: Abstract: There is growing numbers of literature debating over effective types of innovation modes and interactions that generate innovation output and moreover economic growth. However, these studies are mostly based on the case of developed countries and only few studies cover developing or transition countries. Within this context Estonia is chosen as the most successful post-Soviet transition country that is catching-up to the level of European Union in terms of economic growth and innovation level within a relatively short period of time. Estonia went through major structural reforms, including accession to EU membership and implementation of sequential Research and Development and Innovation (RD&I) strategies to improve its economic performance in a sustainable way through enhancing its innovation capacity by increasing its expenditure on R&D and building up competitive infrastructure. Within this context, this thesis studies what modes of innovation and interactions were practiced in Estonian firms after its independence and how these modes of innovation have changed during the early (first wave 2002-2004) and late (second wave 2010-2012) stage of implementing RD&I strategies and joining EU. Supporting the findings of most studies, the effective innovation mode has changed from DUI mode to combined STI and DUI mode for product inoovation output while process innovation output keeps its significant relation with combined STI and DUI mode of innovation during the two waves. Also the shifts in effective interactions for innovation outputs are observed with drastic changes in non-technological innovation while both external and internal interactions is applied for technological innovation from the first wave to the second wave.