International study: Estonia grows as a knowledge economy

Since 2014, Estonia has seen a 60 percent increase in the share of adults employed in brain business jobs, making it one of the fastest-growing countries in Europe, a recent study by the European Center for Entrepreneurship and Policy Reform (ECEPR) found.
The relative importance of people working in "brain business jobs" – advanced roles in technology, IT, services and the creative sector – rose to 9.1 percent in Estonia in 2024 (from 8 percent previously). While Estonia previously ranked behind eleven European countries in its share of brain business jobs, it now surpasses all but Switzerland, Ireland, the Netherlands, Malta and Denmark, having a higher concentration of knowledge workers than Sweden, Germany, Norway and Finland.
The index, published by ECEPR and supported by Nordic Capital, measures the share of the working-age population employed in knowledge-intensive companies across 33 countries and 244 regions in Europe.
This shift can be attributed to Europe's increasingly integrated economy where jobs are moving to regions with lower taxes, strong talent pools and a business-friendly climate. Estonia, alongside Ireland – now ranked second – also benefits from having some of the best educational outcomes in Europe, supporting its growth as a knowledge-based economy, the study concludes.
Since 2014, Estonia has seen a 60 percent increase in the share of adults employed in brain business jobs, making it one of the fastest-growing countries in Europe. However, several other nations have experienced even more rapid growth. Poland, Malta and Bulgaria have seen slightly higher increases, while Croatia, Romania, and Lithuania have grown their share of adults in advanced jobs by 80 percent.
"Brain business jobs are growing particularly in Southern and Eastern Europe. Western European countries such as Ireland and the Netherlands, which offer more competitive tax policies and regulations, are also seeing growth. The four regions in Europe with the highest concentration of knowledge-intensive jobs are all capital cities in Central and Eastern Europe, combining low taxes with access to a highly-skilled, young workforce," said Nima Sanandaji, head of ECEPR.
In Portugal and Cyprus, the proportion of adults in knowledge-intensive jobs has doubled since 2024. Although Estonia's progress is remarkable, the competition from these fast-growing countries is significant, as Europe's integration into a knowledge-based economy provides opportunities for others to catch up.
Estonia excels in high-tech manufacturing, employing over 6,500 people in this sector, alongside a growing IT services industry that now employs nearly 4,200 people.

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Editor: Marcus Turovski
Source: ECEPR