Since regaining independence, Estonia has been pushing boundaries to create an effective, investment-friendly environment. It has the OECD’s best tax rate and some of the highest per-capita investment numbers globally. Transforming into one of the region’s most dynamic economies took decades, and billions of foreign direct investment (FDI). This is where Invest Estonia’s story started in 1994.
Built to support and accelerate foreign investment, we celebrated our 30th anniversary this year with a special seminar full of Estonia’s most influential economic minds and foreign investors, and spiced things up with the first-ever Outstanding Foreign Investment Awards.
- ABB, a five-time winner of Estonia’s Foreign Investor of the Year title, has invested over €80M during their 30-year journey in Estonia, recently announcing plans to relocate more production from Finland while maintaining a strong commitment to sustainability with three solar parks at their Jüri technology campus.
- GPV Estonia (formerly Enics) earned recognition for their significant impact on regional development, employing nearly 800 people across their Elva and Tartu facilities and investing almost €4 million in 2023 alone.
- Ericsson was celebrated for their bold decision to invest in a next-generation production and technology centre in Tallinn during economically challenging times, creating 2,000 jobs and contributing €30M in labour taxes in 2023.
Just as Estonia is serious about getting FDI, this wasn’t just another coffee-and-handshakes affair but a deep dive into three decades of transforming the country’s economy and future challenges.
The afternoon kicked off with Minister of Economy and Industry Erkki Keldo, who stressed the government’s commitment to spur growth through new, large-scale support measures and speeding up administrative work for new investors. Things are already done fast in Estonia—from creating companies in mere minutes to filing taxes in a few clicks—but they can always be faster.
Minister of Economy and Industry Erkki Keldo
He also stressed the importance of smart industry as the future growth engine for Estonia, which requires both doubling commitments to educational efforts and collaborating with the private sector. “Supporting engineering students and bringing them together with companies helps to create contacts and offers benefits to both parties,” he said.
Joonas Vänto, Director of Invest Estonia, recapped the agency’s achievements, including record-breaking FDI inflow in recent years, crowned by an all-time high in 2022. From world-leading battery plants to new energy solutions, Invest Estonia is making every possible effort to make the country one of the most attractive investment destinations in Northern Europe and the world.
Looking into the past for a brighter future
The afternoon featured two thought-provoking panel discussions. The first panel, “(Why) are foreign investors looking elsewhere?” brought together a line-up of Erkki Keldo, Kaspar Oja (Economic Adviser to the President of Estonia), Nadežda Dementjeva (Managing Director at Inission Tallinn), and Joonas Vänto.
Moderated by Invest Estonia’s adviser Mirjam Eerma, the panel explored current investment trends and Estonia’s competitive position in the global market, focusing on industrial policy. “When we talk about investments into industrial sectors, we should think what kind of industry we have at the moment, what can be built upon it with the highest value-add factor,” said Oja.
This notion resonates with the private sector. Inission has recently unveiled a €2M investment in cutting-edge equipment at its Lagedi plant to meet customers’ needs through advanced manufacturing capabilities. “But we, of course, feel the growing need to bring more talented people into the sector to expand educational opportunities,” said Dementjeva.
The second panel, “The investments that shaped Estonia,” featured distinguished industry veterans including Jukka Patrikainen (Member of the Board at ABB Estonia), Bashyam Krishnan (CEO & Chairman of the Board at Horizon Pulp and Paper), and Margus Jakobson (Managing Director of InCap Estonia). Moderated by investment adviser Kärt Klein, the discussion provided insights into how foreign investments have transformed Estonia’s economic landscape over the past three decades.
It also showed Estonia’s diverse economic potential. InCap’s main facility, producing advanced electronics, is located on the scenic island of Saaremaa, West Estonia. “First, it’s a really nice place — good living environment, stable workforce, great location. We consider our markets to be Nordic countries, so it’s very convenient for them to come to make prototypes and exchange ideas,” said Jakobson. Others found Estonia just the same — dynamic yet calm and predictable in just the right manner when it comes to building a business. “I came to Estonia in 1995, recognising its strategic logistical potential,” said Bashyam Krishnan.
Capturing changes
The event featured a special video trilogy chronicling Invest Estonia’s journey. “earliEST adopters” took attendees back to the agency’s founding days, featuring insights from early pioneers, including Jüri Sakkeus, Agu Remmelg, and Sonny Aswani.
“30 years of the smartEST investments” showcased the strategic partnerships that have shaped Estonia’s economic success.
“Investing in the brightEST future” painted an optimistic picture of Estonia’s investment potential in the years to come.
As Invest Estonia turns 30, the agency’s role has evolved far beyond its initial mission. Today, it stands as a crucial bridge between global capital and local opportunity, helping to write new chapters in Estonia’s economic success story. And if the energy in the room was any indication, the next thirty years promise to be just as transformative as the last.
If you want to be part of the next great Estonian success and make history with Invest Estonia, get in touch through our 1:1 e-Consulting service and let’s find the smartEST investment for you!
