Let’s move to a new level together

The Innotrep web environment is a cooperation ecosystem for increasing the innovative capacity of Estonian companies and developing a common culture of innovation.

Three steps to an innovative company

Read more about the process

Analyze and evaluate your company’s innovation capacity

Create an individual action plan to increase your competitiveness

Use the opportunities of the Innotrep network to develop your business

Innotrepp is a model for the development of the innovation capacity of companies, with the help of which we can talk about innovation based on the level of development and needs of each company.

The purpose of innovation is to create value and achieve a competitive advantage, contributing to the company’s development and productivity growth. At the same time, innovations do not always have to be the first in the world or lead to a radical change, but can also contain small incremental changes that improve. Users of the Innotrep application have the opportunity to evaluate their innovation capacity with a simple test and find suitable partners for cooperation.

98

Number of joined companies

Estonian companies interested in innovation, who contribute to the Estonian economy with their growth ambitions

2.2

Average score

The average Estonian company is just like this – shall we rise to the next level together?

A common roadmap for understanding innovation

All companies want to be successful, but everyone’s journey to success is different. The difference in their journeys also means that we need a more precise vocabulary to support innovation – if the activities necessary for the development of one company are related to the implementation of processes, for example, another lacks product development competence, and the third needs help in carrying out an international research project, then all of them talk about innovation in different words.

Five levels of ability

Companies can be divided into reference innovation capability levels based on how much control they have over their own competitiveness. Companies on the bottom rung of the ladder depend primarily on customers (whom they cannot choose themselves), companies with a global reach and a unique value proposition shape the market on the top rung of the ladder.

Level 1

Interested in innovations

You are interested in innovation, you have also planned to pay more attention to innovations in your company. Where to find inspiration? Where to start?

Level 2

Tester of innovations

You have tested individual innovations and development activities in the company. Innovation is no longer a confusing foreign word for you.

Level 3

An innovator with a guided process

Your company’s level of innovation is characterized by clear processes and practices. Having learned from the first tests and projects, you have created systems and internal agreements that work in your company.

Level 4

A strategic innovator

Your company’s level of innovation is characterized by strategic innovation activities, large-scale research and development activities and increasing internationalization. You have grown from a systemic innovator to a strategic editor.

Level 5

Ecosystem designer

Good luck! Your company has achieved global influence and you are an innovation leader and leader in innovation in your field. You are an example to others, your activities are characterized by cooperation involving different parts of the ecosystem and open innovation.

Market dependent
Competitive
Market creator

Six layers of factors

The innovative capacity of companies depends on the interaction of six factors: management, team, value proposition, processes, finances and cooperation. Companies at each level of development have different challenges within the framework of all the areas mentioned: for example, the challenge of the management level of a company at the entry level is to prepare a company development plan, and companies at the top level work for a 10+ year development horizon.

Ambition and leadership

Management vision and ambition, strategic directions and leadership skills necessary for the long-term success of the organization.

Culture and people

Organizational culture and employee engagement that creates a favorable environment for innovation and creative solutions, thereby supporting the overall success and development of the company.

Innovativeness of the value proposition

How the company creates and offers unique value to its customers, thereby differentiating itself from its competitors in the market and ensuring sustainable growth and customer retention.

Innovation management processes

Strategic approaches and systematic methods used by an organization to generate, evaluate, select and implement innovations.

Finances

Resources and financial management, including investments, budgeting strategies that are important to ensure funding for innovation projects.

Partners and cooperation

Strategic partnerships and cooperation networks that enable companies to share risks, resources, knowledge and accelerate the development of new solutions.

Innotrep competence matrix

By crossing the levels and factors of innovation capability, we get the innotrep competence matrix, with which we can talk about innovation in the context of this particular company: which topics are a challenge for this particular company and how to help it.

Level 1
Level 2
Level 3
Level 4
Level 5

Partners and cooperation

Finances

Innovation management processes

Innovativeness of the value proposition

Culture and people

Ambition and leadership

Innotrep matrix

The Innotrep matrix looks at the six key drivers of innovation performance at five different levels. To read the matrix, start from the bottom left corner – ambition and leadership – and move upwards. For a more detailed description of each level of a company’s innovation capacity, click on the category to open it!

Phase 1
An innovation enthusiast

Inspiration

Level 2
Piloting individual innovations

Basic knowledge

Level 3
An innovator with a guided process

Processes and organisational engagement

Level 4
A strategic innovator

RD and investment intensity

Level 5
Ecosystem shaper

Global impact and reach

Partnership and open innovation
Seeking and/or noticing inspiration
Individual innovation partners
Partners selected for innovation
Research institutions and international partners
Open innovation, partners contribute to the heart of the ecosystem
Open innovation
Corporate knowledge is not driven

No internal knowledge, skills or technologies are kept or documented.

In-house knowledge management

The company pays attention to keeping internal knowledge and skills within the company.

Data and intellectual property processes

The company has procedures in place to avoid uncontrolled disclosure of internal knowledge, know-how and technologies and to protect trade secrets/intellectual property.

Sharing data and intellectual property

The company has procedures and experience to create knowledge or technologies in collaboration with other companies. The company is prepared to license some foreground and technologies to non-rival companies.

Open Innovation Collaboration Platform

The company’s intellectual property is commercialised in a systematic way, for example through licensing or the creation of spin-off companies.

Cooperation capacity
Market knowledge

We do not collaborate with other companies or organisations on innovation activities, but we do gather information from the market about trends in our field.

Innovative collaboration with customers and suppliers

We do a small amount of innovation with customers, partners and/or suppliers.

Initial partners with an innovation focus

We have well-established partnerships and innovation projects with selected partners to develop new products and services.

A continuous innovation partnership

We have a systematic and continuous innovation partnership with businesses, researchers, customers and professional networks.

Innovation partnerships through an open platform

Innovation cooperation works through an open collaboration platform, through which we seek the best market knowledge and partners.

Finances
No financial capacity
Project-based funding
Systemic funding
External financing capacity
Public offer capacity
Investment in innovation
Does not invest in innovation

We are not investing consciously in innovation. Our budget does not differentiate between innovation activities.

Random reactive expenditure

Our budget includes funds for innovation projects, but innovation spending is ad hoc, mainly responding to market conditions, and innovation spending is not differentiated.

Digitalisation, automation, product development

We have implemented a fixed budget for innovation projects, including continuous automation and digitisation, and we have processes in place to finance these projects.

Research and development adds >2% of turnover

We devote a significant part of our budget to innovation. Investment is focused on research and development (around 2% of turnover or more than €1 million).

Research and development >10% of turnover

Our financial planning is fully integrated with our innovation strategy, allowing us to be a leader in the field and set the direction. The focus of investment is on research and development (around 10% or more of turnover or in millions of euros).

Financial capacity
No capacity to raise money

The capacity to raise money is currently lacking or inadequate.

Individual projects funded

We have a small number of innovation projects funded on a project basis.

Systemic investment in innovation

We have systematic investment in innovation and the capacity to finance innovation on a consistent basis.

Capacity to mobilise external resources

We have put in place a strategy to finance innovation projects and have the capacity to attract external investment and funding.

Ability to raise money by listing shares

We have a wide and diverse range of funding sources for innovation, including for example internal funds, venture capital and/or grant schemes, and the capacity to raise money through a stock exchange listing, where appropriate.

Innovation processes and practices
No innovation leadership
Initial agreements on innovation governance
Innovation management process established
Your innovation management model fully implemented
An ecosystem inclusive innovation process
Innovation Management
Not available from

We do not have the knowledge or experience of managing innovation processes, nor do we have established innovation governance principles. When an idea for innovation arises, it is implemented on the side. Innovation activities tend to be haphazard, they are not systematically planned, and the generation and implementation of ideas is random.

Project-based innovations

Innovation activities are needs-based. Innovation activities are project-driven and may involve new products, services, processes, business models or technologies. The company has some initial knowledge of how to manage innovation processes and may have started by describing processes. However, innovation is still being implemented on a project-by-project basis, as and when required.

Innovation management process and strategy

The guiding principles for innovation processes are in place but partially implemented. The company has established and managed innovation processes to implement innovative ideas. An innovation guiding principle is a set of instructions, guidelines, policies or rules formally adopted and established by a company that governs how the company plans, manages and promotes innovation in its operations and strategies. It involves the regular generation, evaluation and development of ideas to achieve a continuous and iterative process of innovation. The aim of systematic innovation is to increase the effectiveness of innovation and to ensure that it is embedded in the day-to-day activities of the organisation.

Implemented its Innovation Management Model

An innovation management system is in place and fully implemented. The company has in place continuously improved processes for innovation management, systematic implementation of innovation projects and risk management. Strategic innovation is implemented, where the company designs and implements new ideas and innovations that support its long-term business objectives and strategy. It focuses on how innovation can help a company to achieve a competitive advantage, expand market share or create new business opportunities. Strategic innovation is deeply embedded in a company’s business plan and long-term vision and is used to achieve strategic objectives.

ISO innovation management implemented

The company’s innovation management system is of strategic importance and internationally scalable. This means that innovation is not only targeted at the local market, but also at international markets and often requires the development of an international business strategy and careful planning of resources and partnerships. The innovation management system is in line with the ISO 56002 standard for innovation management, and is also used in the partner network.

Innovation portfolio management
Not available from

The company does not distinguish between traditional development projects and innovation projects. It deals with projects where the risks have been assessed.

Individual innovation projects

Innovation projects are random. The company undertakes renewal projects on a project-by-project basis and/or on an as-needed basis, giving priority to lower risk projects.

A consolidated view of innovation projects

A holistic overview of innovation projects. The company owns, differentiates and manages existing innovation projects, at different levels of risk, but may not own projects across all 3 horizons.

Integrated portfolio management 3. on the horizon

Holistic innovation project portfolio management through 3. horizon. The company monitors and manages its innovation projects across the different innovation horizons ( 1 – new to the company, or incremental innovation; 2 – new to the target market and/or its industry; 3 – new globally, or radical innovation) to ensure that they are ready to address both short and long-term challenges and that their innovation supports the overall strategy and business objectives.

Segmented innovation portfolios

The company has segmented innovation portfolios. Innovation projects are categorised into different segments according to specific objectives, needs or market segments. This allows the company to focus on different areas and manage innovation resources more efficiently.

Managing the flow of ideas
A random selection of ideas

There is no separate process for gathering ideas in the company, the collection of ideas is random. Brainstorming, or the process by which a company collects and collates new ideas and suggestions from employees, partners or customers to find potential innovations or solutions to problems.

Ideas are linked to market demand

Idea generation is driven by market demand and is largely linked to process improvement. Employees have the opportunity to put forward their ideas and suggestions for improvement. It can involve different channels for submitting ideas, such as online platforms, hackathons, workshops or brainstorming campaigns.

Annual brainstorming and market testing methodology

Idea gathering to improve processes or products/services takes place at least once a year. From the ideas collected, a selection is made to be tested. Some market testing methodology is used.

Regular open call for ideas and market testing

The company has developed a regular open call for ideas. Ideas are systematically focused mainly on developing products/services and leveraging competitive advantage. A continuous market testing methodology is applied.

Continuous open brainstorming, transparent testing

Brainstorming is part of our innovation process and culture. Idea generation, testing and development are an integral part of the innovation management process.

Product development
No product development

The company does not consciously engage in product or service development.

Primary product development practice

The company has some experience in product development. Mainly adapting the product/service to customer requirements or creating small-scale modifications.

Customer-focused and systematic product development

The company has proprietary products and/or services, which we have created a customer-centric approach and product development process to develop.

Knowledge-intensive product development

The company has an extensive portfolio of proprietary products, for which specific development processes have been developed.

Product development based on open innovation

The company has a large-scale product/service development based on open innovation principles. Manage development processes both within the company and in a collaborative network.

Value proposition innovation
Seeking and/or noticing inspiration
Innovation in a category
A holistic view of the value proposition and individual protected IPRs
Protected intellectual property portfolio and recognised brand name
A globally unique competitive advantage and innovation platform
Novelty of the business model
Similar business model to competitors

There is no clear and distinctive selling point. The business model is business as usual (similar to competitors). No experience of getting to know the customer/consumer and their real needs in order to adapt products/services accordingly.

Efficiency-based business model

The business model is constantly being rethought, and there are initial ideas and hypotheses on how the business model could be used to leverage competitive advantage in the future. Real changes to the business model have not yet been implemented. Competitive advantages could be price and efficient business processes. There are some innovative elements in the business model, but these are limited.

A successful business model in the market

The business model is innovative at home and in selected target markets. Systematic renewal of the business model to maintain and/or completely change the current competitive advantage. The ambition is to achieve a clearly differentiated business model.

Unique business model that creates new markets

A business model that is significantly differentiated from its competitors, allowing it to exploit competitive advantages. Often a sector leader. The uniqueness of the company’s business model allows it to enter new markets.

Business model as a platform for innovation

We have a unique business model that has given us a first-to-market advantage. The company’s business model creates entirely new markets where it is the only or one of the few providers.

Novelty of technology
Use of widespread technologies

The company’s technology is at the same level as its competitors in the market. It uses widely available technologies that are ready for use by all market players and do not provide a significant competitive advantage.

Some technological novelty

The company’s technology has some advantage in selected markets. The use of widely available technologies, adapted to the company’s processes, gives a competitive advantage in the target market.

Strong technological innovation

The company’s technology gives it a significant advantage over competitors in its field. It makes significant use of upgraded technology, which gives it a competitive advantage in its field, irrespective of the region.

Unique technological novelty

The company’s technology allows it to enter markets that are inaccessible to competitors. The use of novel and/or significantly upgraded technology gives the company a competitive advantage irrespective of the region and/or sector.

DeepTech / Deep Technology

The company’s technology enables the creation of entirely new markets around the world. Unique technologies are used to create entirely new uses and to transform existing markets.

Innovation of own product/service
Product/service prevalent on the market

Product/service prevalent in the market.

Improved product/service on the market

A market-enhanced product/service is a product or service that has undergone changes or improvements to better meet market demands or consumer expectations. This can include a variety of improvements such as increasing quality, adding features, changing design, adjusting price or improving service.

Individual own products/services

A distinctive own product is a product or service that is different from other similar products or services available on the market and offers unique characteristics, benefits or added value to consumers. This differentiation may include particular design, quality, features, brand awareness or other unique characteristics that make the product prominent and attractive on the market.

Internationally distinctive product/service, recognised brand name

Internationally distinctive own product/service, recognised brand. The organisation makes consistent efforts to maintain and exploit the value of its brand and to ensure its effective protection and management. This can be an important part of business strategy and competitive advantage in the market.

Product-service is a synonym for product category.

An open innovation based proprietary product and/or service that is a leader in its product category. Open innovation is an approach where an organisation collaborates with external parties, such as other companies, universities, research institutions, customers or partners to identify, develop and implement new ideas and innovations. It involves sharing ideas and knowledge outside the company, and leveraging knowledge and skills from outside to create value and competitive advantage. Open innovation can include technology transfers, collaborative projects, licensing agreements and other forms of cooperation.

Intellectual property protection
No IO

The company’s value proposition is not protected, it tries to develop faster than its competitors. A value proposition is a company’s promise of how its product or service will solve customer problems or meet their needs better than competitors. It helps a company to differentiate itself in the marketplace and to attract customers who feel that they are getting a particular benefit or value from a particular company or product.

No IO

The knowledge needed to realise the value proposition is kept as a trade secret. The value proposition may cover different aspects such as the quality of the product/service, the pricing formula, unique features, ease of use, brand reputation or customer service.

Single protected own product

The company has partially protected trade secrets and/or some registered intellectual property, but no systematic approach yet. A protected trade secret is a trade secret consisting of information, data, processes or other knowledge that gives a company a competitive advantage because it is not publicly known. Protected trade secrets can include a wide variety of information, such as product recipes, production processes, marketing strategies, customer lists, research and development results or other knowledge that is important to the company.

Protected product portfolio

The company has a portfolio of products protected by intellectual property rights. The intellectual property needed to realise the value proposition is catalogued and actively managed, and the protection of intellectual property through registration is systematised. The IPR portfolio comprises the company’s products, services or technologies that have been granted legal protection through intellectual property rights such as patents, trademarks, copyrights or designs. This protection helps the company to protect the intellectual property it has created and to ensure that no one else can use, copy or distribute it without permission.

Intellectual property protection strategy

The company has a well thought-out IP protection strategy, an actively managed IP portfolio and/or registered industrial property. An IP strategy is a company’s plan for how to protect the intellectual property it has created, such as patents, trademarks, copyrights, designs and trade secrets. The purpose of the protection strategy is to preserve and maximise the value of the intellectual property created, to protect it from unlawful use or misuse, and to give the company a competitive advantage in the marketplace.

Business process innovation
Reactive adaptation of the work process

Business processes focus on key processes. Organic process improvement, mainly responsive to market conditions.

Automation and digitisation of individual processes

Some innovation in support and management processes, with the aim of making them more efficient. For example: an action plan for digitisation and automation has been established and partially implemented.

Systematic automation and digitisation across all processes

Deliberately implemented systematic digitisation and automation of business processes to achieve competitive advantage.

Proactive process innovation driven by innovation objectives

Innovation-driven systematic and proactive business process improvement and streamlining.

A benchmark for process innovation

Systematic and strategic continuous business process innovation with performance evaluation.

Culture and people
Individual stakeholders
Individual promoters
Involving the wider team
Culture of innovation
An example of innovation
Culture of innovation
Lack of readiness for change

The company does not consciously analyse the work culture, create or develop a culture that supports innovation. Company culture is the set of organisational values, practices, behaviours and attitudes that determine how people work and interact within an organisation.

Experiments in organisational change

The company’s culture of innovation is not well established, but individual innovations can be tested.

General supportive mentality

A company culture that supports innovation, openness to change and willingness to take risks. The company invests in employee engagement, creativity, motivation and satisfaction. The company has a description of the recommended standards of behaviour and practices within the organisation. This includes the way in which people communicate, lead, collaborate and innovate.

Innovation is part of company culture

A company’s innovation culture is based on shared values and beliefs. It is open to change and dares to take risks. The company has implemented innovation performance incentives to develop competences.

Established innovation culture

The company’s innovation culture is characterised by deep-rooted shared values and beliefs, while at the same time fostering creativity and efficiency through collaboration. A horizontal management culture is deliberately developed within the company. Open and honest communication is implemented, which contributes to an understanding of the culture and values of the organisation. The organisation’s core values and beliefs are actively promoted and emphasised.

People
Innovation activities are not part of daily work

Employees do not play an active role in innovation. Initiating and adapting to innovations is rather difficult, and employees value stability and daily work.

Individual promoters

There are a few innovation leaders in the company who are open to change and willing to take risks. Innovation is a sideline to the core business. Leaders shape and define the values of the organisation and set an example through their behaviour, thereby influencing the attitudes and behaviour of employees. They are also responsible for fostering open communication, teamwork and staff development in line with the organisation’s objectives.

Posts related to innovation

There are positions in the company whose tasks are related to innovation activities. Employees are motivated to think “outside the box” and carry the values of innovation.

A dedicated innovation team

The company has a competent team whose main tasks are related to innovation. They work with commitment, create and maintain a culture that supports innovation.

Recruitment according to the development horizon

The company recruits in line with the objectives of the company’s innovation strategy, and consciously seeks people with values and skills that support innovation to complement our existing team.

Ambition, leadership and strategy
Interest of owners and managers
Initiative to deal with individual innovations
International ambition and innovation strategy
Knowledge-intensive innovation with international ambition
The ambition of a cooperation platform/consolidator
Scaling /sales potential
Random external enquiries

There is no international scalability or the focus is currently mainly on the domestic market. Enquiries from foreign clients are rather occasional.

Regular external orders

The company has a few export markets where the product/service fits. The company regularly receives orders from foreign customers but does not actively sell to target markets.

Strong sales performance in selected target markets

The company has well-established international target markets and products/services to match them. Products/services are tailored to specific target markets. The company has export/sales managers and/or sales partners on the ground in the target markets with a focus on the target markets.

A strong international brand and presence

The company has a strong international brand and presence in foreign markets. It is expanding its reach into new markets. Products/services are developed specifically for different target markets. Exports account for a significant share of sales revenue

Global reach, consolidated companies

The company has global sales and business reach. Global scale of business refers to the company’s operations and expansion at an international level, where the company operates in several countries and/or in a large number of markets. The company engages in business activities that are internationally diversified and extensive.

Market ambition
Local market ambition

The company has ambitions to be a market leader in the local market.

The ambition of individual foreign markets

The company has the ambition to reach selected foreign markets with competition and has chosen specific target markets to match its product/service.

Broader international ambition in target markets

The company has a broader international market leadership ambition and the product/service sales ambition includes market leadership in its region.

Global ambition

The company has global ambitions to conquer markets. The company’s product/service sales ambition includes being a global market leader in its field.

The ambition of a global cooperation platform

The company has the ambition of a market-changing global collaboration platform and the goal of creating and launching a platform or solution that not only transforms an existing market or industry, but also supports international collaboration and influences global dynamics.

Governance
Reactive leadership, drive for development

The company reacts to change as and when it is needed and does not plan innovation projects far in advance.

Tactical management 1-2 a, with individual innovations as part of the process.

The company has a 1-2 year plan and budgeted ongoing development activities, including upgrading projects.

Strategic development horizon 2-5 years, of which the innovation strategy is a part.

The company has a 2-5 year plan, which includes systematically managed innovation projects and targets. Innovation projects are planned and managed, following a defined methodology and system to ensure the successful development and implementation of innovation in the organisation in line with strategic objectives.

Visionary development horizon 5-10 years

The company has a 5 to 10-year plan based on vision and knowledge-intensive innovation. Knowledge-intensive innovation requires extensive use and development of knowledge, expertise and intellectual capital. This implies that the successful implementation of innovation depends on a strong knowledge base and specialised skills.

10+ a development horizon

The company has a 10+ development horizon and a strategy based on knowledge-intensive innovation. Knowledge-intensive innovation often involves research and development, where scientists, engineers and specialists develop new technologies, products or services.

Ambition for innovation
Interest in innovation

The company is keen to invest more in development alongside its current activities.

Ambition for a distinctive own product/service

The company has the willingness to take new initiatives and the desire to better manage innovation processes.

Ambition for international recognition and brand

The company has systematically managed innovation projects and the ambition to create an innovation strategy. An innovation strategy is a company’s planned and systematic approach to how they intend to promote, manage and implement innovation in their business.

Global ambition

The company wants to make RD an integral part of its innovation. RD is the process of generating new ideas, technologies, products, services or processes that form the basis of innovation.

The ambition of a global cooperation platform

The company wants to create innovation projects with a long horizon to create market-changing products/services. Long-term innovation projects may include RD activities to research and develop new technologies, long-term product development to conquer new markets or the creation of new business models that may change the company’s business model in the future.

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