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The 2% Club – we invest at least 2% of turnover into research and development!

Who are we?

We are a community of Heads of Development and entrepreneurs who invest 2% or more of their respective company’s turnover into research and development

What unites us?

  • We want to popularize R&D activities among entrepreneurs through examples, success stories and ideas.
  • We will include R&D-intensive companies into the activities of the Employer Innovation Start-Up Chamber (TIKK) for creating knowledge and networking.

What is Reserach and Development (R&D?)

An activity that engages researchers or scientific methods to develop a novel product, product feature or process. R&D does not just mean adopting a solution that functions elsewhere; instead, it requires (applied) scientific research or the contribution of scientists. Read more about the definition of research and development from the 
Frascati Manual
.

Where do we start from and where do we want to go?

Estonia’s position has fallen in all competitiveness leaderboards in recent years; the proportion of company profits in added value, and the volume of new direct foreign investments have been in decline for several years in a row. One of our proposed solutions is to gather together the more innovative Estonian companies into the 2% Club, to compile the best possible innovation network and accumulated experience.

In Estonia, we have adopted the goal that the business sector should contribute 2% of added value to research and development. According to 2018 data from Statistics Estonia, about 160 companies have reported that their research and development expenses constitute at least 2% of their turnover.

We believe that there are even more of these companies, but guiding the aggregate indicator to 2% of GDP requires multiplication of the figure.

What type of value does membership in the 2% Club create for a company?

  • Positive marketing and status – being among the most innovative companies in Estonia. This status brings along the right to use the label on the company’s website and/or products.
  • An advantage in applying for the entrepreneurship award “Innovator of the Year” from Enterprise Estonia and the Estonian Employers’ Confederation.
  • Networking, partner search, and RDI cooperation information.
  • An opportunity to share and partake in experience stories and best practices.
  • Participation in international R&D networks and representative organisations.
  • The first contact point of RDI policymakers in the business sector is TIKK, through which, members of the 2% Club also have a limited opportunity to contribute into policymaking as an advisory body. Also, take a look at how you can become a member of TIKK and fully participate in policymaking (link)!
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