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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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