Public Sector Innovation Fund

Estonia’s direction for 2025–2027 is clear: to create an environment in which the economy grows, the state is resilient to crises, and bureaucracy does not hinder entrepreneurship.
The Government prioritises innovative solutions that support economic growth and business development, strengthen the country’s resilience to crises, reduce unnecessary bureaucracy, and improve the efficiency of the public sector.

Strengthening Innovation Capacity

During the current EU funding period, support is available for public sector innovation projects that seek solutions for implementing the changes identified in the Estonia 2035 strategy and apply new knowledge and technologies in doing so. We are particularly looking for research-based and innovative solutions in the focus areas of the Eesti teadus- ja arendustegevuse, innovatsiooni ja ettevõtluse (TAIE) 2035 arengukava (Estonian Reasearch and Development, Innovation and Entrepreneurship Strategy 2035):

  • digital solutions in all areas of life
  • health technologies and services
  • adding value to local resources including food, wood, mineral resources, secondary raw materials and waste
  • smart and sustainable energy solutions

Whether a project involves developing innovative solutions, testing them in real-life conditions or something else, it must be carried out using a reliable methodology. This must make it possible to draw evidence-based conclusions from the pilot project results and make informed decisions about whether the results should be adopted.

To support public sector innovation projects, new methods, tools and guidelines are also being developed, preliminary analyses are being conducted, and the sharing of experience and professional development are being encouraged.

Submission of Project Ideas, Project Solutions and Implementation

The Innovation Fund supports the exploration of innovative solutions, the development of solutions, and their testing in real-life conditions. It does not support the procurement of ready-made solutions or the implementation and wider deployment of the results of funded innovation projects.

The project initiator must be a public sector organisation. No financial co-funding is required, but the applicant is expected to be actively involved throughout the project and to appoint a strong project manager.

The Government Office carries out a preliminary assessment of the projects to verify compliance with the mandatory criteria. The projects are then reviewed by the Committee of Secretaries General, which selects projects based on their alignment with the priorities set by the Government. An expert committee conducts the substantive assessment and makes the funding decision.

In some cases, the funding decision may be conditional and enter into force only after additional requirements have been met. In such cases, applicants may revise their project proposals based on the expert committee’s feedback and submit a final version.

Project implementers are selected through public procurement procedures and may include research institutions, companies, or third-sector organisations. The procurement procedure or competition is prepared jointly by the project team and the Government Office.

We prefer flexible procurement procedures in which the final solution is not prescribed in advance, thereby allowing room for innovation. In organising innovation-supporting procurements, the Government Office and the project team are supported by the Estonian Business and Innovation Agency, which has been designated by the state as a voluntary central purchasing body for such procurements.

Contacts

Name Occupation Institutions to be served Phone Email address
Aivar Hiio Innovation Team Lead Public sector innovation 5624 4387 [email protected]
Kadi Villers Adviser Public sector innovation 5665 3148 [email protected]
Regina Tagger Adviser Public sector innovation 5690 2339 [email protected]
Kairit Viidalepp Adviser Public sector innovation 5646 7281 [email protected]
Eneli Saabas Adviser Public sector innovation 5675 4144 [email protected]
Elisabeth Luisk Adviser Public sector innovation 5390 5063 [email protected]
Kerttu Kuld Procurement Specialist Public sector innovation 693 5620 [email protected]

 

Activities and projects in the field of innovation are funded under the European Union Cohesion Policy 2021–2027 measure.

ESF logo inglise keeles

Last updated: 11.08.2026

open graph imagesearch block image