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Estonian Human Development Report

Estonian Human Development Report - Eesti Koostöö Kogu

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have been underfinanced or are not effective for other<br />

reasons. At the same time, Estonia’s expenditures on<br />

social protection have also been low and the unemployment<br />

insurance system has been comparatively rigid.<br />

• While the central issue in Estonia during the next<br />

few years will probably be the state of industry and<br />

industrial employment, our future in the longer term<br />

will depend primarily on how successfully we are<br />

able to move in the direction of a modern knowledge<br />

region model. The realization of this model will play<br />

a key role for cities that are able to seize new, primarily<br />

service-related, functions for themselves in<br />

the international division of labour. It is extremely<br />

important that the Tallinn and Tartu metropolitan<br />

areas be able to concentrate employment in knowledge-intensive<br />

high-tech services, to gain international<br />

recognition and become well-networked<br />

knowledge regions.<br />

Some prerequisites, primarily the high percentage of<br />

employees with higher education, already exist, while<br />

some still need to be created. One of the preconditions<br />

for the development of a knowledge city/knowledge<br />

region is the attractiveness of the environment to talented<br />

people and the ability of the urban environment<br />

to support and encourage creativity. Thus movement<br />

towards the creation a knowledge city also means<br />

aspiring to realize a creative city model. However, this<br />

creates a need for treating culture and cultural prerequisites<br />

differently in a contemporary context in order<br />

to develop modern economic structures that function<br />

through international communications; to expand<br />

the mentality of the city and increase its creativity; to<br />

develop a symbiosis of culture and enterprise (creative<br />

economy); and to make the urban environment more<br />

attractive by implementing the ideas of creative people.<br />

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