Welcome to the land of unicorns!
I am proud that Estonia is the frontrunner in the digital world and has become a global hub for tech start-ups. Startup nation as some call Estonia. You all have an important role in this and I hope you will continue developing this brilliant success story.
The IT and startup sector have contributed around a quarter of the economic progress of the last five years in Estonia, although its’ share in the economy was just over 5% five years ago. On one hand, this means that the development of the society has been unequal and we might start to worry about the rest of the economy not putting up the pace with you. On the other hand, as the share of the digital sector is growing, the average company and job are becoming to look more and more like a job in your industry. You challenge cemented thinking, disrupt old business models and introduce innovation where it seems impossible. Despite of the volatilities of the recent years, the digital sector has continued to grow steadily.
Your companies have boosted our economy, but I would also like to emphasise the wider socio-economic impact of the startup sector. Besides putting everything online and Estonia on the global map, the expansion of tech sector has transformed Tallinn and many other Estonian cities during the previous ten years. We have seen development of former industrial areas into nice neighbourhoods, we see people from all around the world living and working here; and heart-warming initiatives especially in the last two months by your sector. High-tech companies that attract professionals have made Estonia more open and increased the value of education in the business economy.
Hopefully in a good sense, there will always be a shortage of labour in the tech sector, as the lack of highly educated professionals should motivate today’s graduates to study and develop themselves in order to become successful in their lives. Or make even people at my age to go and study again as it is just so cool to work at your companies
The start-up mindset and digitalisation could benefit many fields of the society.
I was told that during the covid years a number of the former employees from the tourism industry found employment in the digital sector. They are not necessarily working as developers or engineers. It might even be, that their job is quite similar to what they used to do before, but their productivity has most probably increased. This is an example of how the structural change is re-shaping the economy towards the better and more efficient equilibrium.
The digital economy is rearranging many fields. The covid related restrictions had only limited impact on the economy a year ago thanks to the use of online sales platforms, digital payment methods, and connectivity tools. Similarly, the education system benefitted from online platforms, and remote work became a standard in many companies after the digital solutions had proven to be reliable and convenient during the covid period. Not all sectors are as adaptive as yours.
Estonia is a small country, but the startup sector is making us bigger. It is nearly impossible to scale a production of physical products in a small country, but scaling a digital company is a different story. This is our opportunity and I believe we have done it well. Nevertheless – we do lack talents here to grow even bigger and all people in this audience who are not working for Estonian startups – this is your chance.
But let me challenge you! We should look for ways how to use the knowledge of digital technologies to solve the current acute crisis. How can our technologies enhance the defence of Europe, or optimise energy consumption and production? Can we use technologies to solve the disruptions in the global value-chains? Or could we lower our dependence on foreign commodities just using the technology?
We have to look at the current obstacles as challenges in order to turn them into a business case. I know you see opportunities where others see risks.
I thank you for this and wish you a fruitful conference.
