VZCZCXYZ0002
RR RUEHWEB

DE RUEHTL #0036/01 0181446
ZNR UUUUU ZZH
R 181446Z JAN 08
FM AMEMBASSY TALLINN
TO RUEHC/SECSTATE WASHDC 0460
INFO RUEHHE/AMEMBASSY HELSINKI 5263
RUEHRA/AMEMBASSY RIGA 2965
RUEHVL/AMEMBASSY VILNIUS 6708
RUEHBS/USEU BRUSSELS

UNCLAS TALLINN 000036 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EEB/CBA AND EUR/NB 
HELSINKI FOR SCO MCCLEARY 
 
E.O. 12958: N/A 
TAGS: ECON ETRD BEXP AMGT ABUD BTIO EINV EN
 
SUBJECT:  TALLINN'S BFIF FY08 PROPOSAL 
 
REF: A) 07 STATE 159597  B) 07 TALLINN 754 
 
¶1. (U) Summary:  Embassy Tallinn proposes one FY08 
project for the Business Facilitation Incentive Fund 
(BFIF) to facilitate the participation of three leading 
U.S. science and technology parks in the international 
innovation conference 'Baltic Dynamics 2008.'  This 
conference will take place in Tartu, Estonia September 
3-5, 2008.  It will bring together government, academic 
and corporate experts on high-tech research and 
development. Post is requesting a total of USD 9,999 in 
BFIF funds. End Summary. 
 
A) Justification: 
 
This proposal will support the Department's goals of 
investing in people, and promoting economic prosperity. 
It will raise the profile of U.S. research and 
development institutions at a prominent annual Baltic 
event which, for the last eleven years, has attracted 
hi-tech researchers predominantly from European 
countries.  It will assist Estonia's economic goal of 
maintaining growth through innovation in key technology 
sectors. Lastly, it will further personal networks among 
leaders in a variety of hi-tech fields, with the aim of 
facilitating bilateral cooperation and investment in 
these fields. 
 
Estonia Strives to Innovate -- the U.S. Can Help 
--------------------------------------------- -- 
 
After several years of ten percent or more annual GDP 
growth, Estonia's economic growth is slowing.  GDP 
growth fell to 7 percent in 2007 and is projected lower 
in 2008.  Government of Estonia (GOE) policy makers 
continue to discuss ways to increase Estonian 
productivity and sustain growth, including through the 
use of innovative and high-tech products.  (Reftel B) 
The GOE established the Estonian Development Fund in 
April 2007, which is helping to fund innovative 
companies.  It also recently opened an office of 
Estonia's trade promotion agency (Enterprise Estonia) in 
Silicon Valley. 
 
Although Estonia has an investor-friendly market and is 
well-known for its advanced high-tech sector, it is 
still very difficult for small Estonian companies to 
attract attention in the United States.  This is due in 
large part to the relatively small size of Estonia's 
market, fierce competition, and the need to develop good 
personal relationships in order to break into certain 
high-tech sectors in Estonia.  Bringing key players from 
the U.S. high-tech sector to Estonia will go a long way 
to facilitate development of these key relationships. 
 
The Baltic Dynamics conference has been held annually 
since 1996 to promote the sharing of best practices 
among technology parks in Estonia, Latvia and Lithuania. 
The host of the conference rotates every year, and 2008 
will be Estonia's turn as host.  The 2007 conference was 
held in Riga, Latvia, and attracted participants from 33 
countries, mostly from Europe.  A key goal of this 
proposal would be to raise the profile of the U.S. at 
this event. 
 
Research Triangle Park in North Carolina, the Silicon 
Valley U.S. Market Access Center, and the San Jose Bio- 
tech Center have confirmed their preliminary interest in 
participating in the Tartu innovation conference 'Baltic 
Dynamics 2008' from September 3-5, 2008.  The host of 
this year's conference, Tallinn Technology Park 
'Tehnopol', is a relatively new organization, and does 
not have the funds to offer to cover travel costs to 
attract participants.  Therefore, Post is applying for a 
BFIF grant of 9,999 USD to fund travel and lodging for 
three U.S. participants to the conference.  Tehnopol, in 
turn, will dedicate a portion of the conference program 
to the U.S. representatives for their presentations.  In 
addition,  for the first time in this annual conference, 
Tehnopol will arrange for corporate meetings in Tallinn 
and Tartu to introduce the U.S. technology parks to a 
variety of high-tech business leaders in Estonia. 
 
The GOE, the City of Tallinn, and the Tallinn University 
of Technology established Tehnopol in 2003 to support 
knowledge-based innovative entrepreneurship and foster 
closer cooperation among higher education, the private 
sector, and research and development organizations. 
Tehnopol has approximately 51,000 square meters of 
rental space, 115 mature tenant companies (including 
Skype, the internet telephony leader owned by EBay), and 
17 start-up companies.  The expertise and shared mission 
of North Carolina's Research Triangle Park and the 
technology parks in San Jose would provide a valuable 
model for Estonia's efforts to forge a greater 
partnership between industry, government and academia. 
The Baltic Dynamics conference would also provide our 
U.S. participants with opportunities to identify 
promising Estonian start-ups that could work in the 
future with U.S. companies. 
 
U.S. participants would arrive in Tallinn on September 
1, and would have a full-day program at Tehnopol, 
including company meetings, on September 2.  They would 
leave for Tartu September 2 to attend the conference 
September 3-5 and return to Tallinn September 5 in the 
evening. 
 
The cost breakdown is as follows: 
 
Airfare approximately 8,400 USD (2,800 USD per person 
U.S. government fare -- for three people) 
 
Lodging 1,599 USD (533 USD per person for 2 nights 
lodging in Tallinn and 3 nights in Tartu -- for three 
people) 
 
B) Planning Milestones: 
 
March 2008:  BFIF money is awarded. 
April 2008:  The names of the participants are 
determined; Post coordinates hotel and other logistic 
details. 
September 2-5, 2008: conference 
 
C) Performance Metrics: Success of the trip will be 
based on the level of U.S. participation, the number of 
company meetings held, and any partnerships or 
collaborative efforts between companies of the Estonian 
and U.S. science parks originating from the conference. 
 
D) Estimated Costs:  Transportation: USD 8,400, Hotel: 
USD 1,599 
Total Requested: USD 9,999. 
 
E) Point of Contact:  Political/Economic Officer Robert 
Hollister, phone: +372-668-8107, fax: 372-668-8259, 
email: hollisterrm@state.gov. 
 
F) Leveraging of Funding?  Yes, Tehnopol will pay the 
costs related to the meetings on September 2, the cost 
of local transportation in Tallinn and to Tartu and 
back.  Tehnopol will also pay all other expenses related 
to the conference in Tartu. 
 
G) Outcome/Success Criteria?  Yes, see paragraph C 
above. 
 
H) Follow-up Strategy:  Economic/Commercial/EU FSN will 
follow-up with the management of Tehnopol and the 
Enterprise Estonia office in Silicon Valley regularly to 
facilitate and track success stories.  This proposal 
will also further Post's Mission Strategic Plan goal of 
fostering U.S.-Estonian partnerships in innovation-based 
industries (see also Ref B). 
 
¶2. (U) Post thanks EEB/CBA for consideration of this 
proposal. 
 
PHILLIPS