Research In School of Economics and Business Administration

Latest collective monographs of Faculty members include "(Dis)Honesty in Management: Manifestations and Consequences" (2013, Emerald); "Innovation Systems in Small Catching-Up Economies" (2012, Springer); “Labor Market Flexibility, Flexicurity and Employment: Lessons of the Baltic States” (2007, Nova Science); “Estonia, the New EU Economy: Building a Baltic Miracle?” (2006, Ashgate). According to the RePec database SEBA of University of Tartu is the highest ranking institution in study of economics and finance in Estonia based on its research output. The majority of the highest ranked authors in economics and finance in Estonia are from our faculty: http://ideas.repec.org/top/top.estonia.html Two thirds of all economics and business administration doctoral dissertations in Estonia are defended at SEBA. Each year faculty staff members publish more than 140 research publications.

The research potential of SEBA has been steadily growing as the Faculty has established strong  links with  international research networks (e.g. NORFACE) and launched several interdisciplinary research teams (links between migration and knowledge transfer, mobile positioning and tourism marketing, cultural dimensions and innovation).  Our researchers have actively co-operated with partners from major European research centres, e.g. University College London, NIFU-STEP in Norway, UNU-MERIT, SPRU at University of Sussex, Aston Business School, University of Vaasa. In Estonia, we work closely together with economists from Eesti Pank (Bank of Estonia) and Tallinn University of Technology. Our researchers have contributed to various EC FP6 and FP7 research projects, also to Nordic Innovation Centre, NORFACE, OECD Innovation Micro-data projects and World Bank project on links between firm demographics and productivity growth.  In May 2013 the Centre for Emerging Market Studies was established that facilitates co-operation with universities in Jiangsu province of China. 

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Ongoing projects

• CDL-Estonia (Majandus- ja Kommunikatsiooniministeerium; Kistler-Ritso Foundation; Taavet+Sten Tulevikufond MTÜ, 2022−2026). 
• Sustainable and socially just transnational sectoral labour markets: Industrial relations and labour market adjustment to the rise in temporary labour migration - JUSTMIG (EC, 2023-2025)
• Personal and household services in Central and Eastern European Countries: Improving working conditions and services through industrial relations - PERHOUSE (EC, 2022-2024)
• The Economic Integration of the Nordic -Baltic Region through Labour, Innovation, Investments and Trade - LIFT (EEA and Norway Grants,  2021-2023)
• Micro-level responses to socio-economic challenges in face of global uncertainties - Global2Micro  (EEA and Norway Grants, 2021-2023)
• Export(ers') Performance in VUCA and Non-VUCA Environments (PRG1418, 2022-2026)
• Ethical Organisational Culture: Multi-level Analysis of its Determinants, Practices and Consequences (PRG, 2022-2025)
• Innovation Complementarities and Productivity Growth (PRG, 2020-2024)
• Up-to-date measures of culture at the country and regional level (PRG, 2019-2023)
• Reshaping Estonian energy, mobility and telecommunications systems on the verge of the Second Deep Transition (PRG, 2019-2023)
• AS BigBank homepage neuromarketing usability test (BigBank, 2023)
• Value analysis of Ülemiste City as a campus (Mainor, 2023-2024)
• Possibilities for developing company's leadership quality (Enefit Solutions, 2023-2024)

COST network:

• COST CA20123  Intergovernmental Coordination from Local to European Governance,  2021-2025 (D. Eerma)
• CA18214 - The Geography of New Working Spaces and the Impact on the Periphery (comeINperiphery), 2019-2024 (T. Paas)

Recently finished projects

• Preliminary analysis of the establishment of minimum income tax for large international companies and analysis of the profit distribution policy of Estonian companies (Ministry of Finance, 2023)
• Growth Welfare Innovation Productivity - GROWINPRO (Horizon2020, 2018-2022)
• Bargaining for working conditions and social rights of migrant workers in CEE countries -  BARMIG (EC, 2020-2022)
• Innovating Social Entrepreneurship Education- iSEE (INTERREG Central-Baltic Programme, 2020-2022)
• Income, wealth and gender: study and practical web tool for understanding gender pay and pension gaps in Estonia - the country with the biggest gender pay gap in the European Union - InWeGe (EC, 2019-2020)
• Ethical Organisational Culture: Multi-level Analysis of its Determinants, Practices and Consequences (Personal research funding: Team grant, 2021)
• The Baltic economies: Catalysts for the internationalization of Swedish SMEs? (The Foundation for Baltic and East European Studies, 2020-2021)
• The Study of Outward Foreign Direct Investments of Estonian Firms (RITA4, 2021-2022)
• Defining the sectoral diversity of science, developing a methodology and a metrics for its monitoring (RITA4, 2021-2022)
• Economic effects of COVID-19 virus and assessment of implementations of relevant policy tools (RITA1, 2020-2022)
• Improving Estonian internal security social campaigns through neuroscience (RITA2, 2020-2021)
• Climate change mitigation with CCS and CCU technologies (RITA1, 2019-2021)
• Maximising added value and efficient use of raw materials in bioeconomy and its sectors in Estonia (RITA1, 2018-2021)
• Mobile lifestyle and contact data accuracy in public registers (RITA1, 2019-2021)
• Research of Estonian Management 2021 (EAS, 2021-2022)
• Possibilities for developing company's leadership quality (Enefit Solutions, 2021-2022)
• Estonia and Asia: report on future relations (Ministry of Foreign Affairs, 2021-2022)
• Changing of organizational structure (Itella, 2021)
• Prediction of firm failure (Krediidiregister, 2020-2021)
• Automation of the real time in-shop recommendation system for COOP retail shops (Tartu Tarbijate Kooperatiiv, 2020-2021)
• Smart foreign direct investment survey: Analysis of foreign companies in Estonia for developing criteria to manage and attract new foreign direct investments (RITA4, 2019-2020)
• Socio-economic cost-benefit Analysis methodology for Estonian Mineral resources  (MAARE) (RITA1, 2017-2020)
• Migration dependency and integration challenges for Estonia, employers, communities and educational system (RITA 1, 2018-2020)
• Building capacity in modern data analytics in Georgia ( (Estonian Ministry of Foreign Affairs, 2018-2020)
• Enhancing the Effectiveness of Social Dialogue Articulation in Europe - ENHANCE (EC, 2018-2019)
• Structural Change as the Factor of Productivity Growth in the Case of Catching up Economies, (Institutional grant, 2014-2019)
• Boosting cross border entrepreneurial activity in social and creative industries sector - EstLat-Social&Creative (INTERREG, 2017-2019)

The impact of the SEBA research activities on the society will be opened on the example of four cases. By each case is provided the logical sequence of activities – how the basic research has created foundations (capabilities, people) and lead to the applied research which in total has resulted in the significant outcome which has visible impact on the society.

CASE A – Research about the innovation system of countries, innovation policy studies

·       In 2008 SEBA research group (head prof. U. Varblane) was successful in competition and obtained basic research grant „The path dependent model of the innovation system: development and implementation in the case of a small country“  financed by the Estonian Ministry of Education and Research (EMER) between 2008-2013 (total funding 985 000 EUR). It was aimed to develop the model of national innovation system and its implementation mechanisms for the small country, which accounts for path dependency and ensures sustainable economic development.  In addition SEBA researchers had two closely related Estonian Science Foundation grants: ETF 8311 “Innovation indicators for catching-up countries” which was fulfilled between 01.01.2010-31.12.2013 and ETF8580 “Demand as a Driver of Innovation: Implications for Innovation Policy in a Small Country” during period between 01.01.2011-31.12.2014

Based on the knowledge obtained from the basic research the research group of SEBA  (head prof.U.Varblane and prof. K.Ukrainski) together with research group from Tallinn University of Technology (head prof. R.Kattel) fulfilled between 2011-2015 an applied research project “The Research and Innovation Policy Monitoring Programme (TIPS Programme)”commissioned by the Estonian Ministry of Education and Research (total volume 1,2 million EUR). The programme was aimed to provide high quality research competencies for policymaking and strategic development of Estonian research, development and innovation (RDI) policy. It consisted of seven work packages :

• Intellectual property rights in research and development
• Public funding of research activities in Estonia
• Leadership and management models of Estonian research and development institutions
• Management of cooperation between higher education institutions and industry
• Complex analysis of research, development and innovation policy
• Internationalisation of research, development and innovation activities
• Designing the Estonian research, development and innovation strategy for 2014-2020

Among several outcomes of the research project were policy recommendations for the implementation of the Estonian Research, Development and Innovation strategy (2007-2013) and SEBA researchers jointly with the team from the Estonian Ministry of Education and Research prepared the draft of the new Estonian Research and Development and Innovation Strategy 2014-2020 “Knowledge-based Estonia”. Another outcome was recommendations given to the Estonian Research Council how to change the research funding policy of Estonia. They were used by the working group of Estonian Research Council in order to present to the Estonian government the recommendations for the new system of research funding.  Even more important outcome was the policy learning process of officials from the EMER and ERC.

The overall impact of the SEBA research group was a change in the Estonian research  funding regulations, which will be 50%  of competitive (project) based and 50% institution based.

CASE B – Research on labour economics and migration

·       Research group of SEBA headed by prof. R.Eamets and prof.T.Paas have been successful in applying basic research grants domestically and internationally. Involvement in the following two international projects were most important. NORFACE project “Migrant Diversity and Regional Disparity in Europe” (duration 01.10.2009-30.09.2013) addressed the mostly unexplored but challenging dimension of European immigration, namely the impact of the spatial distribution, composition and dynamics of diverse migration flows on socio-economic disparity and individual wellbeing across regions. EU 7^th framework project "STYLE – Strategic Transitions for Youth Labour in Europe” (duration 01.03.2014-30.09.2017) is targeted to conduct a comparative EU wide analysis on youth unemployment that is sensitive to gender, ethnic and class differences and the historical legacies of multi-level institutions shaping relevant policies.

·       The basic research has been accompanied by the various applied projects, which are targeted to the different aspects of labour market and migration issues. For example the joint project of EU Commission and ILO  “Inequalities in the World of Work: The Effects of the Crisis Assessment and Policy Answers”(2010), Estonian Trade Union Confederation project “The role of labour market flexibility in creation of flexicurity policy in Estonia" (2010), Estonian Ministry of Social Affairs project “National Mobility of the Working Force” ( 2011), “Study of Estonian Higher Education Graduates of 2009” (2010-2011) etc.

·       The clear impact of the SEBA research group has been recommendations to change the Aliens Act of the Republic of Estonia in 2013, which were targeted to reform and simplify the process how qualified labour could enter Estonia and hired by the firms. This has been accompanied with the policy learning process in Estonian society, which has been driven by the four migration conferences organized by SEBA and Nordic Council of Ministers. 

CASE C. Research on entrepreneurship and knowledge transfer system of the universities

·       Research group of SEBA headed by prof. T. Mets has done substantial research in the field of the theoretical model of the entrepreneurial university as well about the university industry cooperation models (prof. U.Varblane). The major basic research grant is 7^th framework project BGPROCESS - Smart entrepreneurial process for knowledge society (01.05.2014-30.04.2017) aimed to develop and validate a novel model of entrepreneurial process for new venture creation. Another project was INTERREG IV A project CB ENTREINT “Central Balticum Entrepreneurship Interaction" (2011-2013) focused on the analysis of the entrepreneurship training needs for the entrepreneurship teachers and analysis of the buzz platforms in Finland, Estonia and Latvia.

·       The basic research about the entrepreneurial university has been useful foundation for the different applied projects and activities within the University of Tartu as well outside. EU structural funds based Primus project “Development of the methodology and learning materials of entrepreneurship for the Estonian institutions of higher education” (2013) was crucial in order to form consortia of Estonian institutions of higher and vocational education – CEI (Centre for Entrepreneurship and Innovation). The consortia was able to consolidate and systematize the best entrepreneurship learning experience in Estonia and jointly aimed to improve situation in this field. It was obtained through the program funded from the EU structural funds “Act and Success” (6 Million EUR). Within the “The Research and Innovation Policy Monitoring Programme (TIPS Programme)” funded by EMER the special workpackage “Intellectual property rights in research and development” was executed 2011-2013 by the research group of SEBA and Faculty of Law researchers (prof.A.Kelli). Important applied work of the research group was to fulfil Estonian Development Fund project “The processing of statistical survey data on the entrepreneurial attitudes and entrepreneurship activity of the Estonian population”  and “Compilation of the chapters of the Global Entrepreneurship Monitor 2014 Estonia report” ( 2014-2015)

·       The overall impact of the research has been the establishment of the whole system of entrepreneurial education in the University of Tartu as well in the whole Estonia.

SEBA research group has obtained the role of coordinator of the consortia, dealing with the entrepreneurship learning activities of Estonia on all levels of education. Another impact is the creation and running of the training and support-system of the development for knowledge-driven high potential startups (Idea Lab of the University of Tartu). The most visible result of the many years of the previous work in this direction was the execution in Tartu on the December 7^th 2016 the international business festival sTARTUpDAY2016 with almost 3000 participants from many countries. Fundamental paradigm change of the Tartu University has been the move since 2015 that in all Faculties of the University of Tartu entrepreneurship has been offered as the compulsory element of the study program.

For the international entrepreneurship research community very important outcome was the execution of the Estonian survey of the GEM (Global Entrepreneurship Monitor) in 2013 and 2014, which made Estonia also internationally comparable.

In general the work of this research group has resulted in the visible impact on the change on the entrepreneurial culture in Estonia.

CASE D. Research on the organizational behaviour and management

·       Organizational behaviour, organizational culture and human resource management has been important field of research for SEBA headed by prof. M.Vadi, who have been successful in applying basic research grants domestically and internationally. Three most important international basic research projects were following: EU 7^th framework project "SEARCH - Sharing KnowledgE Assets: InteRegionally Cohesive NeigHborhoods” (2011-2014), EU DG Home Affairs project PRIVACOR “Reducing Corruption: focusing on private sector corruption” (2014-2016) and European Centre of the Development of Vocational Training project CEDEFOP “Learning cultures in organisations” (2015-2017) . The last project was aimed to understand how the learning culture in organizations contributes to their economic success at the enterprises in Estonia, Finland, Germany, Slovenia and Portugal. In addition the research group fulfilled Estonian Science Foundation grant 7018 “Service Organizations From The Perspective Of Oforganizational Behavior: Some Influencing Factors and Trends”  (01.01.2007-31.12.2010), which investigated relationship between the organizational behavior and the performance of the service organizations.

·       The SEBA research group has provided many applied research projects both for public and private sector. Enterprise Estonia funded project “Research of Estonian management: 2010” (2010-2011) evaluated the management of Estonian firms by its main functions (planning, organizing, influencing, and controlling).  Nonprofit organization FinanceEstonia funded the project “ The State, Future Demand and Promotion of the Estonian Financial Sector's Human Resources” (2014) aimed to elaborate proposals for training and development of Estonian financial sector specialists. Within the “The Research and Innovation Policy Monitoring Programme (TIPS Programme)” funded by EMER the special workpackage “Leadership and management models of Estonian research and development institutions” was executed 2013-2015 by the research group of SEBA. Most recent project “Best Practices of Management in University of Tartu” (2016-2017), where based on qualitative research best practices of management are drafted and initiatives for future development are suggested.

·       The impact of the research on the Estonian business promotion system is visible. The recommendations derived from the SEBA research about the Estonian management created active feedback from the business sector and were used by the Enterprise Estonia (the Estonian business promotion agency). They created a new supporting instrument Enterprise Development Programme aimed to the improvement of management capabilities of Estonian managers. 

Since the 1990s, the Nordic-Baltic region integration has gradually deepened, receiving a new push through the EU expansion in 2004, which gave the Baltic citizens access to the labour markets of Sweden (in 2004), Finland and Iceland (in 2006), Denmark and Norway (in 2009). While many theories help to understand the nature and the potential of the regional integration processes, such as the Nordic-Baltic one, empirical evidences are still incomplete and sometimes inconclusive.

The aim of the project LIFT is to study the historical performance and estimate the potential for the economic integration of the Nordic-Baltic region via labour migration, technology transfer, foreign direct investments and capital mobility, trade of both physical goods and services. The study will look both into the hitherto effect of the regional integration, the challenges caused by that and the lessons for the future policy. The interdisciplinary consortium including members from economics, international business and sociology along with the triangulation of quantitative and qualitative research methods enables a multifaceted study of the economic and social processes related to integration of the Nordic-Baltic region. The use of detailed microdata on the population of employees and employers like matched employer-employee datasets could ambitiously help to estimate the impacts of integration at high level of granularity. The study will look in particular at the effects of various policy changes affecting regional integration like EU Eastern Enlargement in 2004, changes in laws affecting companies and individuals and changes in market access. This newly gained knowledge about the economic relations within the Baltic-Nordic region will be used to increase the awareness of the potential of business and political cooperation between the Nordic and the Baltic countries. The involvement of the industry and public stakeholders in the dissemination process will ensure the outreach to the policy.

See project homepage here.

The Research and Innovation Policy Monitoring Programme (TIPS Programme) has been commissioned by the Estonian Ministry of Education and Research for the period 2011–2015. The programme provided high quality research competencies for policymaking and strategic development of Estonian research, development and innovation (RDI) policy, implemented by the researchers from the University of Tartu and Tallinn University of Technology in cooperation with other research institutions, government offices and business representatives.

The programme’s mission was to foster the cooperation between government offices, universities and the private sector and to increases the role of science and research as a supporter of the Estonian economy. The research activities of the programme have led to policy recommendations for implementation of the Estonian RDI strategy (2007–2013) and for designing both the new Estonian RDI strategy (2014–2020) and policy measures.

The most important activities of the programme were: (1) research and policy analysis; (2) consulting the ministries; (3) public dissemination of research results through workshops, conferences, written reports, published articles, policy papers etc. All these activities have fostered the co-operation between government offices, universities and the private sector and increased the role of science and research as a supporter of the Estonian economy. As a result of the programme 23 independent research reports and more than 90 academic publications have been published during 2011–2015.