Estonia tops Central Europe in “brain business” index

A new index shows that 9.4 per cent of Estonian adults work in “brain business” roles – highly knowledge-intensive jobs in technology, ICT, advanced services, and the creative industries.

This is the highest level in Central Europe, narrowly ahead of Slovenia at 9.2 per cent, according to the European Centre for Entrepreneurship and Policy Reform – also known as the ECEPR.

The ECEPR noted that larger European countries lag behind: Germany stands at 8.3 per cent, France at 6.4, Italy at 5.5 and Spain at 5.4. Lithuania and Hungary hover around eight per cent, while the Czech Republic, Bulgaria, Slovakia and Croatia exceed seven per cent. Poland trails with 5.6 per cent.

“Brain business jobs tend to grow in countries with high expert density and lower tax burdens,” said Nima Sanandaji, CEO of the ECEPR. “In Estonia, 9.2 per cent of adults are engineers and scientists. Estonia has an even higher share of adults in brain business jobs than this figure would predict, thanks to favourable tax and business policy. Among younger generations, Estonia now has more experts than even Sweden.”

A group of students at TalTech. Photo by Jevegeni Salikhov; the image is illustrative.
A group of students at TalTech. Photo by Jevegeni Salikhov; the image is illustrative.

The report credits Estonia’s strong education system, competitive tax regime and expanding high-tech manufacturing and IT services sectors. The share of adults in brain business jobs has risen from 9.1 per cent a year earlier, marking steady long-term growth.

“Estonia is the Central European nation with the highest share of brain business jobs, growing thanks to the combination of strong education and lower tax levels, which lead to less crowding out of private business growth,” Sanandaji added.

According to the index, around 6,250 people are employed in Estonia’s high-tech manufacturing sector, with a further 3,900 working in IT services.

The ECEPR has tracked Europe’s geography of brain business jobs since 2017, drawing on data dating back to 2014. The Stockholm-based think tank focuses on how Europe can sustain prosperity in the 21st century.

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