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Tartu – city of smart enterpreneurship Modern business environment World class education and research center Medical hub of the Baltic States Very high density of high tech enterprises Inspiring and green life environment


In Tartu good thoughts turn into good deeds What makes a city so attractive to people looking for a new home, and for startup companies looking for fresh ideas? I believe that people are the key because when you feel good and at ease somewhere, you will be innovative, industrious and happy. Tartu is just one of the tens of thousands of cities worldwide. So what exactly makes Tartu so attractive for investments and startups? I will give you five simple reasons. First. Tartu embodies wisdom. Here you will find one of the best universities in Europe and many toplevel scientific institutions and research laboratories. Tartu is a universitas of science and innovation, a place where different fields of research provide mutual support and exchange useful ideas. In Tartu every company can find brilliant partners from the world of science. Second. Tartu boasts an excellent climate for business: the city is compact so all companies are situated close to each other and their staff quickly learn about new urban opportunities and offers. Tartu makes it easy to launch a small or large business solution because the city authorities are always prepared to think along with the entrepreneur and offer flexible options aimed at ensuring that good concepts and business ideas are rapidly implemented. Third. Tartu has served as the starting point for several global technological enterprises and developments. The city is home to plenty of new companies with promising ideas and a strong startup community. By the way, Tartu is the only city in the world that fits perfectly into the word sTARTUp. The favourable urban environment and the abundance of IT companies stimulate constructive competition and inspire businesses to conquer the world, burrow deep in the ground or soar high into space in search of new achievements. Fourth. The youthful atmosphere of Tartu creates the sensation of freedom and endless opportunities: plenty of diverse cultural events with all kinds of films, plays, dances, games, street art and cosy relaxation take place in Tartu. The spirit of Tartu is liberal and the city is invariably full of activity and excitement, whatever the season. Fifth. Tartu is a youthful city that has aged gracefully, retaining its many traditions. Things are being created and born here all the time. Tartu reaches across the globe and sets the business world ablaze. This city is green and peaceful, and it inspires good thoughts and facilitates their turning into good deeds. Do you need any more reasons to come and discover Tartu for yourself? Do come here then. I will show you our city and give you a sixth reason. I invite you to Tartu, the city of good thoughts! Urmas Klaas Mayor of Tartu


Invest in Estonia Estonia offers a progressive innovative business environment with an efficient and compatible infrastructure. Our e-services, mobile communications and internet applications are among the most advanced in the world. The attractiveness of Estonia is demonstrated by the large number of foreign investors doing business here and the dominance of worldrenowned foreign companies in several of Estonia’s economic sectors. Exports represent more than 100% of the Estonian GDP. In Estonia, foreign investors are treated the same as domestic ones, and European Union subsidies, for instance, are equally available for both foreign and domestic companies. Estonia’s advantageous and user-friendly business environment has attracted a great number of foreign investors and large companies of international renown to the country, including Ericsson, ABB, Kuehne + Nagel, Stora Enso and many others. Estonia is a member of the WTO, European Union, OECD and NATO.

The Estonian economy is ranked highly internationally (in 2015) • International Tax Competitiveness Index – 1st • Index of Economic Freedom – 8th • Ease of starting a business index – 15th • Ease of doing business index – 16th TAXES • VAT 20% • Income tax – 20% • Corporate tax rate – 0% (if profit is reinvested) • Real Estate tax – 0% • Social Tax – 33% (20% social security, 13% health insurance) • Flat tax system The Republic of Estonia is the first country to offer e-Residency—a transnational digital identity available to anyone in the world interested in administering a location-independent business online. e-Residency allows documents and contracts to be signed digitally, the authenticity of signed documents to be verified, an Estonian company to be established online, the company to be administered from anywhere in the world, e-banking and remote money transfers to be conducted and Estonian taxes to be declared online.


Tartu - a rewarding choice for inv Tartu is a city that promotes innovation via competitive enterprises, an attractive investment environment and the facilitation of entrepreneurship and knowledge-based production and services. If you are considering Estonia as a source of investment or business opportunity, take a look at Tartu and Tartu County. Tartu is a city in constant motion, empowered by innovative changes with a substantial influence on citizens´ welfare and business growth. The region´s infrastructure has been extensively updated and is ready for further expansion. A development strategy and detailed action plans have been prepared and put into force in most areas to maximise the potential of the development. Recognising that the city and county are so mutually dependent, the administrations of both actively coordinate at every level to continue the rapid tempo of positive change. The region’s infrastructure has been extensively updated and Tartu and Tartu County administrations are cooperating in the development strategies and detailed action plans to maximize potential and maintain a rapid tempo for city and county development.

Expertise in the sectors with the highest potential ICT, electronics Biotechnology, medicine Metal Processing, Machinery Wood Food

Long traditions and high competence in metalworking, electronics, information and communication technologies, wood processing and biotechnology have made our enterprises internationally competitive.

Facts about Tartu • 2nd largest city of Estonia, pop.: 100,000 • Companies: 15,752 • Labour force: 78,900 (including county) • Unemployment rate: 3,9% • Average gross wage: 969 € pm. • Tartu county’s share in Estonia’s GDP: 10% • 70% of economy is tertiary, 25% secondary sector • 11 higher education institutions • 17,400 students


vestors

SPARK Demo – Business card of South-Estonia. SPARK Demo is an exhibition and collaboration centre where the most successful exporters and employers and the brightest startups of the region are presented. Showcases from many local and regional companies complemented with stands from universities and business development organizations will give you an excellent overview of the economic landscape of southern Estonia!

Protolab - Everything from a single workshop— an engineering service, prototyping and small series production. Protolab has the ability to solve problems in every step of the product development cycle, from the idea phase to setting up full-scale manufacturing.

Mobile parking - In 2000, Tartu was the first city in the world to introduce mobile parking payments. This close cooperation with mobile operators is saving hundreds of thousands of euros every year, as there is no longer any need to support a large number of parking meters and related cash-collection activities.


World class education and resear Tartu is Estonia’s leading centre of education and research. Human capital has served as the driving force of Tartu’s growth over the centuries. Our well-functioning education system and high standard of R&D institutes are widely recognized. Tartu has 11 higher education institutions, with a total of 16,400 local and 1,000 foreign students, conducting internationally recognized research and providing world-class research-based higher education. There are three higher education institutions with over 1,000 students—the University of Tartu, the Estonian University of Life Sciences and Tartu Health Care College. The University of Tartu, founded in 1632, is one of the oldest universities in Northeastern Europe and is ranked in the top 3% of the world’s best universities. The second largest, the Estonian University of Life Sciences, is one of top 100 universities in the world in the field of agriculture and forestry. Since 2001, Tartu has been the seat of the Ministry of Education of Estonia. The research institutions of Tartu practically represent all the trends and fields of science in Estonia—Tartu is the base for five centres of excellence and three competence centres.

Foreign students in Tartu • Finland 32% • Russia 11% • Ukraine 8% • Latvia 5% • India 4%

Facts about Education sector in Tartu (2014) Number of higher education institutions: 11 • Number of students: 17,400 • Increase in foreign students shows double-digit growth in the last two years: 23.1% in 2014 and 18.2% in 2015 • University of Tartu: 11,500 students • Estonian University of Life Sciences: 3,600 students 5 centres of excellence • 3 competence centres


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The Estonian Genome Center of the University of Tartu has created a database of health and gene data and family trees of Estonians, i.e., a population-based biobank, which includes data from approximately 5% of the adult Estonian population. The aim of the Genome Centre is to implement the results of scientific work in everyday life in order to introduce the principles of personal medicine in Estonia.

The Estonian University of Life Sciences creates and shares knowledge with the promotors of bio-economy for the benefit of nature and humans. An integrated value chain approach in the bio-economy sector is the cornerstone of its activities. The university is one of top 100 universities in the world in the field of agriculture and forestry and belongs to the top 1% of the most-cited research facilities in the world.

The University of Tartu Institute of Technology focuses on three main branches of research, from molecular biology to chemistry to robotics and material science.


Estonian Silicon Alley - Favourabl Estonia has made a name for itself for the innovative application of communications technology, where state-of-the-art technologies are a way of life. Tartu has always been a trendsetter when it comes to ICT developments—talented minds and ambitious entrepreneurs have led to a rapidly growing ICT ecosystem which has attracted the attention of venture capitalists as well as foreign ICT companies. The ICT and electronics sector in Tartu is characterized by a few leading companies and many startups (especially in ICT) who have partially grown out of these large companies and who supplement each other and form a well-working cluster. The favourable environment towards ICT has allowed huge companies like Microsoft and Skype to open their development centres in Tartu. The key strengths of the sector include successful spin-off companies, a qualified workforce and a professional and functioning co-operation network between research centres and companies. The ecosystem is not only being supported by the companies, but also by several technological institutions like the Software Technology and Applications Competence Centre, the Buildit Accelerator, Garage48 HUB Tartu, Tartu Science Park and the Smart City Lab cluster. Key Companies Playtech Estonia LLC Nortal Ltd Fortumo LLC Axinom Eesti LLC Reach-U Ltd ZeroTurnaround Cybernetica

Facts about ICT sector in Tartu (2014) Number of companies: 350 • Turnover: 190 m € • Export turnover: 160 m € • Workforce: 2,300


le soil for ICT revolution

Garage48 HUB Tartu is a community-led coworking space in central Tartu for startups and creative, tech and entrepreneurial people from Tartu, Estonia and beyond.

Fortumo is a mobile payments company that enables direct carrier billing with more than 350 mobile operators in 90+ countries to over 130,000 merchants.

Axinom is a highly skilled software solutions provider with more than 15 years of experience and strong technical expertise in digital rights management, content management, synchronization services and delivery solutions for embedded, crew and consumer devices. More than 100 employees in subsidiaries in Europe (Germany, Estonia and France) and North America (USA) have a proven track record of delivering award- winning software solutions for IT, retail, telco, railway, aerospace and media and entertainment customers.


Outstanding medical and biotech Tartu is the centre of Estonia’s medical and biotechnological landscape. The main areas of expertise in this emerging sector in the region lie in the fields of biochemistry, genetics and heredity, neuroscience and bioinformatics. There is a well-developed network of private clinics in Tartu. Clinics collaborate closely with the research and development institutions as well as other companies. Specialists for the rapidly growing sector are provided by the University of Tartu, the Estonian University of Life Sciences and the Tartu School of Health Care. The city of Tartu has declared biotechnology one of its focus areas in its strategy. However, the significance of biotechnology is not only limited to the municipal level— biotechnology is defined as one of the strategic key sectors in Estonia.

Key Companies Tartu University Hospital Icosagen Ltd TBD Biodiscovery LLC Asper Biotech Ltd Icosagen Cell Factory LLC Competence Centre on Health Technologies Ltd

Tartu is the best place for a biotechnology business: - Centre of expertise for life sciences and medicine: more than eight research organizations, 11 universities and colleges; - Centre of health care in Estonia: Tartu University Hospital, many private clinics, medical tourism; - An educated, disciplined labor force with a Nordic mindset for the biotechnology and healthcare sector; - Supporting infrastructure: Tartu Biotechnology Park, modern laboratories, technological solutions for development and innovation.

Facts about Medical and Biotechnological sector in Tartu (2014) Number of companies: 230 • Turnover: 210 m € • Export turnover: 4 m € • Workforce: 4,500


hnological hub

Tartu University Hospital is the largest provider of medical care in Estonia, including high level specialists in the fields of kidney, bone marrow and liver transplantation and congenital heart disease surgery.

Tartu Biotechnology Park provides physical infrastructure as well as business development and consultancy services to companies and R&D institutions in the fields of biotechnology, medicine and veterinary medicine.

TBD-Biodiscovery provides a number of contract services for biotech, pharma, drug development and agrochemical companies. The company has over 10 years of experience in fine chemicals development and synthesis, a GMP (good manufacturing practice) certificate from 2008 and more than 30 compounds and one patent in the product portfolio.


Metal companies with a global re The metal industry is the third largest industry in Estonia. The Tartu region has traditionally been the centre of Estonian research and development with its internationally renowned universities. Expertise, international linkages and traditions characterize the metalworking and machine-building industry in Tartu. The sector varies from historically strong agricultural and forestry machines and apparatus building to new groups of production with car parts and trailers. And last but not least—producers of steel structures have profited from the favorable environment created by the building boom propelled by the Estonian accession to the EU. The key strengths of the sector include: Long-lasting traditions; strong, successful companies active in export (Tarmetec, Hanza Mechanics); availability of properties; support services (research and development, centres of excellence); and compatible curriculums in university and vocational schools (such as Tartu Vocational Education Centre), which means highly educated engineers, semiindustrial labs and equipment. Key Companies Hanza Mechanics Tartu Ltd Tarmetec LLC Respo Haagised Ltd International Aluminium Casting Tartu Ltd Tarfurgo LLC Sievert Eesti Ltd

Facts about Metal sector in Tartu (2014) Number of companies: 107 • Turnover: 112 m € • Export turnover: 77 m € • Workforce: 1,500


each

Buildit Accelerator is a 3-month accelerator program for new global success stories in hardware, the creative industries and health tech, based in Estonia’s Tartu Science Park. Buildit is the first accelerator in the Baltic States and Nordic countries with a focus on physical devices (hardware in combination with software).

Hanza Mechanics Tartu Ltd is one of the leading companies for machined parts in Estonia. The factory is situated in an area with extensive experience in mechanical production, where it has a high technical level and very low turnover of staff. Hanza Mechanics belongs to the Swedish HANZA Group, which supplies complete manufacturing solutions in mechanics, electronics, cables and final assembly.

Respo Haagised AS is the leading car trailer manufacturer in Estonia, owning 42% of the market share.


A forest nation goes innovative Wood processing has historically been a mainstay of the Estonian economy, and its output is based on local and renewable raw materials. Similar to the technological leap made in other sectors of the economy, the flow of new investment has brought state-of-the-art equipment to all areas of the wood processing industry. The range of wood industry products is extensive, beginning with the production and treatment of sawn timber and leading to the production of wooden houses, windows, and doors. Creative thinking and innovations are helping to break traditions in the wood industry—Estonian design accessories like bowties, watches and frames for glasses are becoming increasingly popular. The key strengths of the sector include: Long-lasting traditions; strong, successful companies active in export (AS Kodumaja, AS Lemeks); availability of properties; support services (research and development, centres of excellence, competence centres); proximity of raw materials; co-operation partners; and innovative solutions.

Key Companies Kodumaja Ltd Lemeks Ltd Arens-Mööbel Ltd Tarmeko

Facts about Wood processing sector in Tartu (2014) Number of companies: 230 • Turnover: 334 m € • Export turnover: 111 m € • Workforce: 2,300


Photo: Andrus Leppik

Kodumaja AS, an expert in high-quality housing, manufactured the modules for the tallest wooden building in the world “Treet� (tree) is a 51 m tall timber-framed house in Bergen, Norway.

Teenu is a small company not only manufacturing but crafting individual and unique wooden watches. Each watch is unique and one of a kind, handmade from start to finish.

Okka produces decorative and acoustic wall panels from pine wood, pine needles and wool.


Capital of great food The food industry is an essential part of the manufacturing industry in Estonia. The most important branches of the food industry in Tartu and Estonia are similar: dairy, beverage, meat and bread industries. Exports make up about one third of the total production volume. In addition to the big players, quite a large number of small producers are active in the market. Many of the producers offer healthy and ecologically friendly products—a strength of the well-preserved nature and welldeveloped agriculture in Tartu County and other areas in southern Estonia. The food industry in Tartu is mainly characterized by a few very big manufacturing companies like A. Le Coq, the largest producer of beverages in Estonia; AS Salvest, one of the largest food-canning industries in Estonia; Valio Eesti, one of the largest dairy companies in Estonia; and Nõo Lihatööstus, one of the largest meat products producers in Estonia. Yet, small companies like Luke Dairy Farm (the only moldy cheese producer in Estonia), Andre Farm LLC (cheese) and Gustav (cakes and truffles), etc. are emerging and enriching the local food market.

A. Le Coq Ltd Salvest Ltd Tartu Mill Ltd Valio Eesti Ltd Nõo Lihatööstus Ltd

Facts about the Food sector in Tartu (2014) Number of companies: 20 • Turnover: 286 m € • Export turnover: 45 m € • Workforce: 1,500


Facts about Food industry in Tartu (2014) Number of companies: 20 Turnover: 286 m € Export turnover: 45 m € Workforce: 1,500 Key Companies A. Le Coq Ltd Salvest Ltd Tartu Mill Ltd Valio Eesti Ltd Nõo Lihatööstus Ltd

Farmers’ market – A thorough variety of Southern Estonian farm goods. The farmers’ market in Lõunakeskus offers a large selection of goods produced in Estonia and made of local ingredients.

• Salvest Ltd was founded in 1946 with the idea to make the life of consumers tastier and more comfortable. The company processes and packs soups and vegetables. Their latest offering includes organic baby food products. The company has several ISO certificates and BIO/Organic certificate for producing organic food. • A. Le Coq is the oldest and biggest drinks manufacturer in Estonia. Their product portfolio includes 11 different product groups. A. Le Coq holds the leading position on the Estonian drinks market in the A. Le Coq is the oldest and largest drinks categories of beer, juice, and long drinks and ranks a strong second manufacturer in Estonia. Their product of water, soft drinks and cider. A.Le Coq has been in the production portfolio includes 11 different product groups. awarded the title of the most competitive company of the Estonian Food festivals – Several fairs, including the A. Le Coq holds the leading position onfor theseven years food industry in a row. Tartu Food Festival, a great celebration Estonian drinks market in the categories of etc Estonian food, take place in the centre of beer, juice, and long• drinks and ranks a Toidufestivalid/restoranid of Tartu. A wide variety of Estonian food strong second in the production of water, and fresh produce will be presented and soft drinks and cider. A. Le Coq has been made available for purchase. The cafes and awarded the title of most competitive restaurants in Tartu will be offering attractive company in the Estonian food industry for snacks and dishes made of local produce. seven years in a row.


Tartu: an oasis of intellectual activ Being the oldest city in Estonia, Tartu successfully combines modern infrastructure and facilities with a green and friendly environment: the city is very compact and easily accessible. A serene park with medieval ruins and a river running through the city give it a romantic allure. Part of its appeal is the way Tartu blends old and new. Walking through the city, one can literally touch its history, at the same time feeling a renewed energy and curiosity about what the future will bring. The balance between past and future is an essential part of the celebrated spirit of Tartu. At every corner in Tartu, there are concert venues, exhibition halls, theatres, churches, museums and charming little cafes as well as various pubs and restaurants. An inseparable part of the city is its students, who comprise around a quarter of the population and generate a lot of fun and energy. There is a lively cultural scene with something for every taste. Exciting events and festivals take place all year round. English, German and Russian are widely spoken. Many people also speak Finnish and other languages. High school education is available in English and Russian. All the districts of Tartu have their own parks. There are many walking and health trails on the outskirts of the city and many indoor and outdoor facilities for participating in sports. Nature reserves offering opportunities for photographers and lakes perfect for a nice picnic are just a 15-minute drive from the city. Tartu is easily accessible from Helsinki (by plane), Tallinn (buses every hour and trains every two hours) and from Riga (by bus). Public transportation is cheap and well-organized, but as the city is very compact and distances are seldom longer than 5km, many people tend to walk or use bikes.


vity and rich culture Facts about Food industry in Tartu (2014) Number of companies: 20 Turnover: 286 m € Export turnover: 45 m € Workforce: 1,500

• Salvest Ltd was founded in 1946 with the idea to make the life of consumers tastier and more comfortable. The company processes and packs soups and vegetables. Their latest offering includes organic baby food products. The company has several ISO certificates and BIO/Organic certificate for producing organic food.

Key Companies A. Le Coq Ltd Salvest Ltd Tartu Mill Ltd Valio Eesti Ltd Nõo Lihatööstus Ltd Science Centre AHHAA is the biggest science centre in Estonia and the Baltic states and is located in Tartu. The main aim of AHHAA is to popularise science and encourage people, especially youngsters, to notice the scientific aspects of their everyday lives.

• A. Le Coq is the oldest and biggest drinks manufacturer in Estonia. Their product portfolio includes 11 different product groups. Le In October 2016, the Estonian National Aparaaditehas (the Apparatus Factory)A. is an Coq holds the leading position on the Estonian drinks market in the Museum opens an enlightenment and old factory complex in Tartu. In Soviet times, categories of beer, long drinks and ranksparts a strong second national identity-building institution at juice,itand made secret submarine and covered in the production of water, soft drinks and cider. A.Le Coq has been Raadi. The museum is expected to become its tracks by also producing umbrellas and awarded the title of the most competitive company of the Estonian a landmark, a magnet for cultural tourism zippers that didn’t work. Today, Aparaaditehas food industry for seven years in a row. and an edutainment centre not only for the and the surrounding block have become region, but for entire Estonia. theetc fastest developing region of Tartu. This • Toidufestivalid/restoranid cultural factory unites creative entrepreneurs and the studios of artists and designers. Aparaat, the city’s hottest restaurant, the Müürilill flea market with its long history and several exciting small shops are also located here.


Helsinki Tallinn

Tartu

Riga

Tartu City Government, Department of Business Development

Küüni 5, Tartu 51004, Estonia T +372 736 1192 evo@raad.tartu.ee www.tartu.ee

Tartu County Government Riia 15, Tartu 51010, Estonia mv@tartumaa.ee

T +372 730 5200 www.tartumaa.ee

Estonian Chamber of Commerce and Industry, Tartu Office Pikk 14, Tartu 51013, Estonia T +372 744 2196 tartu@koda.ee www.koda.ee

Tartu Science Park

Riia 185, Tartu 51014, Estonia T +372 738 3005 info@sciencepark.ee www.sciencepark.ee

Tartu Biotechnology Park

Tiigi 61b, Tartu 50410, Estonia T +372 738 3053 biopark@biopark.ee www.biopark.ee

Enterprise Estonia, Tartu Office

Sõbra 56, Tartu 51013, Estonia T +372 738 6000 eas@eas.ee www.eas.ee

Tartu Business Advisory Service

Riia 15b, Tartu 51010, Estonia T +372 742 8402 bas@tartu.bas.ee www.tartu.ee/arinouandla

Facts about Estonia Area: 45000 km² • Population: 1.34 million • Capital: Tallinn (440,000) • Other major cities: Tartu (100,000), Narva (60,000), Pärnu (40,000) • Official language: Estonian • Foreign languages: English, German, Russian, Finnish • Main religion: Evangelist Lutheran • Currency: Euro • Accession to European Union: May 1, 2004 • Local time: GMT +2 hours • Flight times, Tallinn: 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 • Direct flight connections with Tartu: Helsinki (Finnair)

Tartu 2016. Design, photomontage: Emajõe Disain. Photos: Meelis Lokk. Some photos supplied by featured organisations. Print: Ecoprint.

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