The system of firm support grants in Estonia: whom does it favor? Summary: Ettevõtlustoetused Eestis: millist ettevõtet need soosivad?

Abstract

After joining the European Union, remarkable support has been provided to Estonian firms through government grants financed from EU funds, but so far it has not been systematically studied, which firms can get support from them. Current study analyzes all grants for firms financed from EU funds in Estonia in the period of 2007-2013. The paper outlines most supported firms based on activities financed and restrictions set on firms and application. The results indicate that some limitations make only a narrow range of firms eligible to get financial support. The grant measures in different implementing units providing grants vary a lot. Also, grants directed to fixed asset investments have more restrictions when compared with those directed to reimbursement of costs.