Tartu City & County
The smart location in Estonia
Balancing history and innovation
Educational and scientific center of Estonia
Medical center of the Baltics
Complementary high tech enterprises
Modern business environment
An inviting quality of life
www.tartu.ee • Enterprise Estonia www.eas.ee • www.news2biz.com • Statistical Office www.stat.ee • Estonian Institute www.einst.ee • Parliament www.riigikogu.ee • Ministries, finance: www.fin.ee •
Tartu – the Smart Location in Estonia If you are considering Estonia as an investment destination, you should definitely have a look at Tartu – a city and a region in motion, powered by a good business climate and innovative citizens. Tartu County is a naturally diverse and economically developed region with a rich history and strong traditions. It is also situated close to the largest centres in Scandinavia and Russia. The City of Tartu is Estonia’s intellectual capital, hosting two universities, a number of colleges and research institutions. Long traditions and high competence levels in electronics, engineering, ICT and biotechnology have made our enterprises internationally competitive. Knowledge intensive production has great development potential in Tartu region. Our lean and effective administration welcomes and supports investors and cooperation partners. Since 2009, international flights have operated to and from Tartu airport, offering even better access and mobility for international cooperation and networking. You are welcome to come and find out what Tartu has to offer! Sincerely yours Urmas Kruuse,
Mayor of Tartu
Tartu County Governor
foreign affairs: www.vm.ee Banks: www.swedbank.ee • www.seb.ee • www.sampo.ee • www.nordea.ee Telecom: www.elion.ee • www.tele2.ee • www.emt.ee • www.elisa.ee • www.wifi.ee • www.ee
A Compact and Dynamic City Tartu – Estonia’s second city. Cultural heart of the nation. University town. Surrounded by open countryside Tartu has been a noted education and research centre of Northern Europe since the 17th century. Today’s Tartu has maintained its old-time academic charm, and developed a vibrant commercial and business atmosphere. Good access to the entire Baltic Sea region, modern business infrastructure and strong R&D potential have made Tartu an attractive location for many companies. The benefits of the Estonian investment climate add to this: economic freedom, competitive costs, high level of IT infrastructure and an educated workforce. Estonia has some of the most liberal trade and investment laws in the world. Our simple flat rate taxation system is designed to encourage enterprise and maximize profits. All corporate investments are exempted from corporate income tax. Foreign investors are guaranteed a level playing field with local firms, including unrestricted repatriation of profits and capital and the right to own land.
Estonia has an advanced telecomm- “Tartu is unique in the way it blends unications infrastructure and cyber-savvy citizens. Free wireless internet can be together different and outstanding found in many public places. It is an ideal features. It is a city with a long history testing ground for new electronic and mobile technologies. The city of Tartu and new and fresh feeling. It is a has already implemented a number of e- and m-services, allowing the use of university town with a fast-developing internet or mobile phone for interacting business environment. Perhaps most with public institutions. Tartu is a railway hub with links to important, Tartu offers an excellent Tallinn, Riga and Russia. The city has standard of living at reasonable prices.” an international airport with flights to Stockholm and Riga. There is even a river port and a proposal to extend Michael Gallagher, waterway traffic to the Baltic Sea. Director Legal Advocacy Foundation firstname.lastname@example.org
The Tax Incentive Corporate Income Tax % Denmark
Estonia 0 0 Source: EurActive
University of Tartu www.ut.ee • www.emu.ee Estonian University of Life Sciences • Estonian Aviation Academy www.eava.ee • Baltic Defence College www.bdcol.ee • Institute of Zoology and Botany www.z
World Class Education and Research 22,500 university students. Multilingual, optimists with good habits. World leading research. Innovative. “The key indicators of being internationally competitive are the ability to educate doctoral students and to cooperate with the world research community. The University of Tartu is a recognized and reliable partner to our international colleagues and we continue to advance our position as an attractive research and innovation centre in the region.” Alar Karis Rector University of Tartu
Human capital has served as the driving growth force of Tartu over the centuries. Our well functioning education system and the high standard of R&D institutes are widely recognized. The University of Tartu (1632) is the only classical university in Estonia with 9 faculties, 5 colleges and 4 Centres of Excellence. The University, with 17,600 students and an academic staff of 1,700 provides degree education and carries out fundamental as well as applied research in all major fields. Each year researchers publish more than 3000 articles and participate in hundreds of international research projects.
Two more large institutions of higher education are located in Tartu: the Estonian University of Life Sciences and the Baltic Defence College. The University of Life Sciences (1951) with 5,000 students and 400 academic staff is a centre of research and development in agriculture, veterinary science, rural economy, food and environment technologies. Both the University of Tartu and the Estonian University of Life Sciences are expanding their partnerships with industry, providing tailor-made courses and engaging in international co-operation. Around 800 foreign students study in Tartu and this number is growing. High school education in English is also available for the children of visiting academic staff.
R&D funding Research & Development funding in Estonia Million EEK per annum 1400 Private non-profit sector
Higher education sector
400 200 0
zbi.ee • Medicine: www.tamro.ee • www.dentes.ee • www.hansamedical.ee • Tartu University Clinicum www.kliinikum.ee • Estonian Gene Bank www.genomics.ee Biotech: Estonian Bio Centre www.ebc.ee
A Leader in Medicine and Biotechnology Excellent health care. Medical tourism. High tech. Best price. Centre of expertise. The quality of medical care provided in Tartu meets and frequently exceeds European standards. Tartu University Hospital with the staff of 3,500 (including 600 doctors) is the largest provider of medical care in Estonia. It also plays a substantial role in graduate and postgraduate teaching. Education and research go forward in collaboration with the Medical Faculty of Tartu University. Recently the hospital opened a new facility – a modern core hospital that includes surgery, intensive care, emergency medicine, and radiology. Tartu has long been a renowned centre of expertise in medical research, health care and health technologies. Medical sciences have been taught here since the foundation of the University in 1632. During the last five years about 300 PhDs and MDs graduated in medicine, biology and chemistry. World level scientific research is carried out at the Institute of Molecular and Cell Biology of Tartu University, The Estonian University of Life Sciences has won international recognition for its research in animal genetics, reproductive biotechnology, embryo technology and animal health. In 2005, two Centres of Excellence – the Centre of Molecular and Clinical Medicine and the Estonian Centre of Behavioural and Health Sciences – were founded within the University of Tartu. Applied research is encouraged by two Competence Centres, established by a
consortium of industrial and science “The Estonian Genome Center of the partners – the Bio-Competence Centre of Healthy Dairy Products and the Estonian University of Tartu has developed a Nanotechnologies Competence Centre. biobank, which is a huge R&D project Millions of euros have been invested in up-to-date laboratory infrastructure. to be completed over the next 25 to 30 Tartu also hosts the Estonian Genome years. The construction phase will be Project which has the goal of creating a database of health, genealogy and completed in 2010 with health records genome data that would comprise a large part of the Estonian population. of 50 000 gene donors and nearly 1 It currently holds data from over 18,000 million biological samples. Active use of gene donors, and the aim is to increase the number of gene donors up to the biobank has started by researchers 100,000 by 2010. Several spin-off medical enterprises from all over the world with 30 different have already emerged in Tartu – in medical equipment and supplies, wholesale and manufacturers, medical analysis and research. Many of them serve the wider Baltic and global markets. Biotechnological entrepreneurship is promoted by several support organisations, such as the Tartu Biotechnology Park and the Tartu Science Park. The latter supports companies in finding partners and is also active in the process of establishing new companies.
projects currently underway and, industry is already interested as well. (www.geenivaramu.ee)”
Andres Metspalu, M.D.,Ph.D, Professor and Director The Estonian Genome Center, University of Tartu email@example.com
Software: www.playtech.ee • www.softronic.ee • www.medisoft.ee • www.webmedia.ee • www.gennet.ee • www.filosoft.ee • www.regio.ee High Tech: www.estla.com • www.interspectru
Boldly Implementing and New Technologies High level applied research potential. Gigabyte intensive production. Physics, computer and micro-biology heritage. “Tartu offers advanced technical infrastructure and a friendly business environment well supported by the city government. Although it may be challenging for a fast growing business to find a large number of good specialists, there is enough innovation and creativity in the air to provide a good atmosphere for an ambitious venture – Playtech has not regretted the decision to establish its first and largest development center in Tartu.” Juha Olavi Korhonen, Director, Playtech Estonia Ltd firstname.lastname@example.org
Estonia has made a name for itself for the innovative application of communications technology. E-services (e-government, e-voting, e-tax board, etc.) are greatly facilitated by almost everyone carrying an ID chip card and the widespread use of card readers linked to computers. Tartu has been at the forefront of building its virtual infrastructure – for example, the city had the world’s first mobile-phone payment for car parking. By now the m-Tartu project extends to many other m-services, plus applications for MPS (mobile positioning system). Skype’s branch office is located in Tartu, and Tartu Is the home town of its managing director. Free wireless Internet (WiFi) is widespread in the cafés and parks. A small population, tech-smart in a leading edge IT environment makes Estonia – and Tartu! – a great testing ground for new and innovative technologies. The University of Tartu plays a significant role in enhancing the competitiveness of the Estonian IT sector through education and research. The main research fields in the Institute of Computer Science are bioinformatics and data mining, language technology, cryptography, distributed systems, semantics of programming languages, educational software, and software engineering. Research projects produce spin-off enterprises, typically in highly specialised niches of the global market.
There are about 125 IT companies in Tartu – the growth has been fast and continuous. The estimated turnover exceeds 70 million euros and the number of employees is well over 1000. These companies are active in a wide range of services: from mobile solutions to database management, applications, and so on. Back in 1992, an innovation center for IT companies in Tartu – the Tartu Science Park was set up. The organization offers a variety of high quality services needed in the process of R&D commercialization, including: office space, and business and management consultancy. Internetted North Broadband connections % of households, 2009
Iceland Sweden Norway Netherlands Denmark Finland Luxembourg United Kingdom Germany Belgium Malta Estonia Austria France Slovenia Ireland Spain Hungary Poland Latvia Lithuania Source: The Heritage Foundation
87 80 78 77 76 74 71 69 65 63 63 62 58 57 56 54 51 51 51 50 50
um.ee • www.sciencepark.ee Microbiology: www.akrom.ee • www.sbd.ee • www.labas.ee • www.asper.ee • www.visgenyx.com • www.quattromed.ee • www.biopark.ee • www.fitbiotech.com
Building on Competitive Advantages Highly qualified work force. Industrial clusters. Technological progress. Machines and machine tools, wood and food processing. Industry in the Tartu region has been closely connected with the city’s competitive advantages: a highly qualified labour force, strong medical research and electromechanical engineering background, and traditions in the clothing, glass, food and furniture industries. The future development of industry will be based on a cluster approach and the increase of knowledge input. The growth of metalworking and machine building industries in Tartu County remains high. Agricultural and forestry machines, apparatus building, car parts and trailer manufacturing are the strongest sub-sectors with the biggest export turnover. Rapid technological progress and a high investment level characterize the sector. The equipment of the engineering plants enables firms to produce quality products with high precision. Most of the companies engaged in industrial subcontracting can be characterized as very flexible or capable of producing small- and medium-scale series of products with short delivery terms and favourable prices. The construction boom of the last decade fuelled the growth of wood based industries in the Tartu region. Manufacturers of prefabricated houses, doors, windows and furniture have by now extended into export markets. Log house building is another centuries old
tradition and technology of this nation blessed with abundant forests. There are many food processors in the region, offering European quality combined with a large variety of tastes and flavours. Important branches of the food industry in Tartu County are the dairy, beverages, meat packing and bread industries. Products range from canned baby food to blue cheese. Most of the sector is specialised for the Estonian market, but export volumes are expanding gradually. Tartu County has always been known for it strong agricultural traditions and excellent farming practices. In addition to traditional livestock and crop farming, several innovative farms are emerging, some specializing in unusual niches, and some in ecological farming. A huge step forward has been made in the service sector during recent years – the trading space has multiplied in volume; with a number of new hotels, restaurants, conference and other support businesses.
“Kodumaja is a brand and a group of companies, whose main field of activity is building high quality living spaces from pre-fab space elements built in the factory. Our construction methods are effective and ensure that we meet the requirements and standards of our markets. Being used to exporting more than 90% of our production to Nordic countries, we have set a new goal in developing our companies and technology – so that Kodumaja leads the way in our field in Europe.”
Lembit Lump, Managing Director, Kodumaja Ltd email@example.com
Cartography: www.eomap.ee Geographic information: www.regio.ee Industry: www.tarkon.ee • www.sangar.ee • www.ilves.ee • www.tarmeko.ee • www.baltiklaas.ee • www.plastar.ee • ww
Excellent Support for Business Development New EU member. Baltic Sea region: 10 countries, 90 million people. Unique mix of developed and expanding economies. “The mission of Tartu Biotechnology Park is to enhance the development of life sciences and the medicine sector. Tartu Biotechnology Park focuses on increasing the competitiveness of businesses by providing excellent physical infrastructure and business development services and is active in establishing new companies. Since 2009 TBP is the host and partner for the Competence Centre on Reproductive Medicine and Biotechnology.”
Andrus Tasa, CEO, Tartu Biotechnology Park firstname.lastname@example.org
Tartu County has committed itself to encouraging entrepreneurial activity and attracting foreign investment. The Tartu region particularly aims to facilitate innovative enterprises, promote knowledge intensive production, and to make best use of the city’s intellectual potential. There are several support structures for knowledge intensive business projects. The main contact point for anyone looking for business opportunities in Tartu region, is the Tartu office of the Estonian Chamber of Commerce and Industry. Another place to start from is the Tartu City Government and its web page business.tartu.ee. Tartu Science Park has become one of the most essential innovation support organisations in Estonia, incubating companies, providing consultation and services in the fields of business and technology transfer. Tartu Science Park is home to 60 high-tech SMEs in fields such as microelectronics, IT, biotechnology, lasers and many more. The main objective of the private initiative-based Tartu Biotechnology Park, established in 2001, is to support the development of Estonian high tech and knowledge-based companies in life sciences and medicine and to enhance the international competitiveness of the sector by offering physical infrastructure as well as business development and consultancy services. The Tartu
Biotechnology Park supports companies in finding partners and is also active in establishing new companies. In 2001, the University of Tartu established the Institute of Technology with four R&D centres: material and chemical technology, biomedical technology, environmental technology and information technology. This will facilitate the generation of new solutions and technology transfer. The most recent business support institution is Tartu Centre for Creative Industries. In a university town hosting also a versatile art college, there can never be a shortage of creativity. Now the city offers an incubator where ideas can develop into projects and projects into companies. Last but not least – the Tartu Business Advisory Centre consults with starting entrepreneurs and organizes training for a wide audience in all of the Tartu region. An important target group is students – of both high schools and universities. The work of the centre has received awards for excellence and good performance by national institutions.
ww.primus.se • www.tartumaja.ee • www.kroonpress.ee • www.metec.ee • www.salvest.ee • www.alecoq.ee • www.pereleib.ee • www.medical.magnum.ee • www.estiko.ee • www.eurowest.ee
A Rewarding Choice for Investors Hard workers. Euro standards. Few law suits. Clear legislation. Low corruption. High productivity. Estonia offers foreign investors an ideal entrance point to the large and growing markets of the Baltic Sea region and a gateway to North-West Russia. Entrepreneurs find Tartu to be an ideal distribution hub for southern Estonia, and in some cases for the whole of Estonia. New industrial zones extend to the south and to the north from Tartu. Office, retail and industrial space is available both in the city centre as well as in the suburbs. All professional and technical services are available in Tartu. Banking and financial services are highly developed, legal and financial advice is offered by professionals. Estonia boasts one of Europe’s most modern telecommunications networks and a high degree of IT literacy and technology penetration. Estonians are early adopters of technology; and the small size and compact nature of the country makes it an ideal test marketplace for new products. Tartu is at the forefront of these developments with many public services already conveniently available online. EU membership since 2004 has boosted the Estonian economy, yet it continues to provide a low cost base for production and exports. Our legal, tax and financial policies are all designed to be attractive to foreign investment. All corporate investments are exempted of corporate tax. Foreigners have the right to purchase land in Estonia. A complete
overview of the investment environment “Our customers say that it is easy to do is provided by the Enterprise Estonia: business with Enics Estonia – our people www.investinestonia.com. The Scandinavian countries are so far the biggest source of foreign direct investment in the Tartu region. Large foreign investments have been made into engineering, electronics, food industry, glass industry, information technology and biotechnology. Foreign companies have invested also in providing public services: city energy, transport and maintenance companies.
are highly result oriented and goal driven, committed to improvement and serving our customers in order to fulfill the growing demands of our customers. For Enics it is it is easy to do business in the Tartu region, because here we have good infrastructure for financial, logistical and technical services.”
Kalle Kuusik, General Manager, Enics Eesti AS
Index of Economic Freedom Index of Economic Freedom 2010, TOP countries Rank
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Hong Kong Singapore Australia New Zealand Ireland Switzerland Canada United States Denmark Chile United Kingdom Mauritius Bahrain Luxembourg The Netherlands Estonia Finland Iceland Japan Macau
89.7 86.1 82.6 82.1 81.3 81.1 80.4 78.0 77.9 77.2 76.5 76.3 76.3 75.4 75.0 74.7 73.8 73.7 72.9 72.5
Source: The Heritage Foundation
Restaurants: www.vilde.ee • www.restaurantvolga.ee • www.entri.ee • www.tsinkplekkpang.ee
Hotels: www.dorpat.ee • www.pallas.ee • www.draakon.ee • www.barclay.ee • www.londonhotel.ee Culture
Inviting Quality of Life Unspoilt nature reserves. Estonia’s conference city. Gateway to southern Estonia. “Tartu is an oasis of intellectual activity in the south Estonian countryside, a revivifying respite from both the power politics of Tallinn and the steady calm of rural life. The streets of downtown hum with poets, musicians, professors, actors, construction workers, gourmet chefs, fishermen, translators, bar keepers, and chimney sweeps. The city has its own legendary spirit, one that has nourished the Estonian soul for ages.”
Justin Petrone, Journalist and writer
Tartu successfully combines modern infrastructure and facilities with a friendly environment: the city is compact and accessible, green and youthful. A serene park with medieval ruins and a river running through the city give it a romantic appeal. Spring here is full of the excitement of young love, autumn offers breathtaking views of turning and falling leaves. In June the milieu of a medieval city is revived during the Hanseatic Days, as knights, merchants and minstrels appear in the streets. Part of the appeal is the way Tartu blends old and new. Walking through the city, one can literally touch its history. At the same time, you can feel a renewed energy and curiosity about what the future will bring. This balance between past and future is an essential part of the celebrated spirit of Tartu, that Estonians cherish.
An inseparable part of the city are its students, who comprise about a quarter of the population and create a lot of energy and joy. There are lively cultural scenes for every taste, exciting events and festivals take place all year round. English, German and Russian are widely spoken, and many people also able to speak Finnish and other languages. High school education in English and in Russian is available. Wireless internet is common in public places. There is more to the region: in just a 15 minute drive from the city of Tartu there are vast nature reserves waiting for hikers to go photo-hunting for an eagle or a wolf. Half an hour from Tartu lies the most popular winter sport area of Estonia.
E-government on-line availability
% of online availability of 20 basic public services 2010, TOP 10 countries Rank
1 2 3 4 5 6 7 8 9 10
Malta Austria Portugal United Kingdom Slovenia Sweden Estonia Finland Denmark Ireland
100 100 100 100 95 95 90 89 84 83
e: www.vanemuine.ee • www.erm.ee • www.epm.ee NiIghtclubs: www.atlantis.ee • www.pattaya.ee • www.clubtallinn.ee Aura water park: www.aurakeskus.ee Conference: • www.dorpat.ee • www.ecb.ee
Tartu: gateway to southern Estonia Green city. Culturally rich. Low crime rate. Long summer nights. Real winter. Medieval milieu. Joyful. Tartu is the second most popular foreign tourist destination in Estonia after the capital city Tallinn. It is attractive on its own and Tartu serves as gateway for rural tourism in southern Estonia where the summer tourist season is complemented by a winter season attracting downhill and cross-country skiers. Tourists interested in culture and history will find more than 30 museums in the county, including a toy museum, a beer museum and an aviation museum in addition to the traditional art and history museums. The new Estonian National Museum soon will be opened, as well as the science and edutainment centre, Ahhaa. Theatre Vanemuine is staging operas, drama plays and ballet, with its young and culturally diverse ballet troupe having won particular appreciation. These events are treasured by locals and tourists alike. Visitors to Tartu County can also enjoy long walks in untouched nature reserves – huge wetlands with rich wildlife. The traditional fishing villages of the Russian Old-believers on the coast of Lake Peipsi are popular among both domestic and foreign visitors.
Tartu is also becoming an increasingly “It is amazing how Tartu has it all – popular conference venue with its compact city centre and modern strong traditions and innovations conference facilities providing value medieval churches and modern for money. The universities contribute significantly to the conference calendar. skyscrapers, small shops and At the same time, Tartu is seeing more and more regional and International supermarkets, cozy cafes and proud events. It is an attractive and comfortable restaurants, academic and bohemian, place to host an event, and improved logistics with the airport are likely to science and romance, business and bring more events to the city. New international events are welcome by pleasure! It`s impossible not to the Tartu Convention Bureau. More fall in love with this city!” tourist information can be found at www.visittartu.com. Olga Einasto, Attested Guide of Tartu, Head of Library Services Department, University of Tartu Library email@example.com
Discover Tartu Region
Number of people staying in Tartu Region in 2009 2010, TOP 10 countries Rank
1 2 3 4 5 6 7 8 9 10
Finland Germany Latvia Russia Sweden Lithuania France Great Britain Holland Italy
Source: Statistics Estonia
29467 7637 5719 3724 3346 2489 1595 1433 1171 1087
Ministry of Finance www.fin.ee • Ministry of Foreign Affairs www.wm.ee • Estonian Trade Council www.etc.ee • www.visitestonia.com • www.estonica.org • www.visittartu.com
Estonia in brief Area: Population: Capital: Other major cities:
Estonian Chamber of Commerce and Industry Tartu Office Pikk 14, Tartu 51013, Estonia Tel: +372 744 2196 Fax: +372 744 2197 firstname.lastname@example.org www.koda.ee
Head of state: Official language: Foreign languages: Main religion: Government:
Tartu Science Park Riia 185, Tartu 51014, Estonia Tel: +372 738 3005 Fax: +372 738 3041 email@example.com www.sciencepark.ee
Enterprise Estonia Tartu Office Sõbra 56, Tartu 51013, Estonia Tel: +372 738 6000 Fax: +372 738 6001 firstname.lastname@example.org www.eas.ee
Currency: Exchange rate: Accession to European Union: Local time: Average temp. range: Flight times, Tallinn:
Tartu City Government Department of Business Development Küüni 5, Tartu 51004, Estonia Tel: +372 736 1192 Fax: +372 736 1190 email@example.com www.tartu.ee
Direct flight connections with Tartu: Distances from Tartu: Ethnic composition of Tartu:
45000 km² 1.34 million Tallinn (397,000) Tartu (100,000), Narva (68,000), Kohtla-Järve (59,000), Pärnu (45,000) President of the Republic – Toomas Hendrik Ilves Estonian English, German, Russian, Finnish Evangelist Lutheran Parliamentary Republic Single Chamber Parliament of 101 members 1 Estonian kroon (EEK) =100 sents EEK 8 = DEM 1, (1992–1998) EEK 15.6466 = Euro 1 (since 1999) May 1, 2004 GMT +2 hours -6°C in January and +17°C in July Helsinki 35 minutes, Stockholm 1 hour, Prague 1 hour 10 minutes, Copenhagen 1 hour 30 minutes, Moscow 1 hour 40 minutes, Amsterdam 2 hours 20 minutes, London 2 hours 45 minutes Riga (Air Baltic), Stockholm (Estonian Air) Tallinn 186km, Narva 184km, Pärnu 178km, Riga 250km, St. Petersburg 315km Estonians 67,9%, Russian 25,6%, others 6,5%
Tartu County Government Riia 15, Tartu 51010, Estonia Tel: +372 730 5200 Faks: +372 730 5201 firstname.lastname@example.org www.tartumaa.ee
Tartu Business Advisory Service Riia 15b, Tartu 51010, Estonia Tel: +372 742 8402 Fax: +372 742 8491 email@example.com Published with the support of Enterprise Estonia, and Tartu City Government.
Tartu 2010. Design: Emajõe Disain. Photos: Meelis Lokk. Print: Ecoprint.
Tartu city and county promotional brochure