Public Procurement, Innovation and Policy by Veiko Lember Rainer Kattel & Tarmo Kalvet

Author:Veiko Lember, Rainer Kattel & Tarmo Kalvet
Language: eng
Format: epub
Publisher: Springer Berlin Heidelberg, Berlin, Heidelberg

2.The limited competitiveness of domestic electrical and mechanical equipment production led to increasing imports and contributed to the contraction of these sectors. Big, competitive companies limited their activities thereafter to construction, processing of primary raw materials and, to a limited extent, to software development.

3.After 1990, the significant net inflows from the Structural Funds were channelled to the construction of infrastructure and to traditional SMEs. Yet, the economy was not restructured to meet the challenges of the knowledge society. Innovation performance did not improve, as is demonstrated by the Innovation Union Scoreboard (European Commission 2012). The most recent growth period was based on a small number of exporting companies, with exports accounting only for 24 % of GDP (in comparison to an EU average of 43.5 %),2 and on the ostensible prosperity deriving from fund transfers.

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