The Estonian Connected Health Cluster is a countrywide partnership of more than 80 health-related stakeholders. It works to create and improve healthcare products and services, test them in Estonia and abroad, and speed up their commercialisation and adoption. As well as bringing economic benefits to the partners, the cluster’s solutions reduce burdens on health services and improve the quality and availability of care.
- 29 January 2020
The Estonian Connected Health Cluster connects healthcare stakeholders with the Estonian health innovation ecosystem: IT and biotech companies, start-ups, R&D partners and more.
Cluster partners include 43 companies, such as start-ups and health, IT, medical technology, biotech and pharmaceutical firms, along with R&D institutions such as universities and technology centres.
Further members are health and wellness service providers like hospitals, general practitioners, spas and fitness, sports and occupational health organisations. Patients’ and public sector bodies are also part of the cluster. The latter includes ministries responsible for healthcare, health insurance and entrepreneurship and the national health development agency.
An attractive location for healthcare firms
Renowned for its IT start-ups, Estonia is an attractive destination for companies looking to develop technological healthcare solutions. It is the first country to offer e-residency – a digital identity which provides access to secure web-based services for anyone interested in running a business online.
In addition, the country has a nationwide e-health infrastructure, with 97 % of prescriptions issued digitally; and 5 % of the population are gene donors, which supports biotech research. The government has launched a personalised medicine pilot project with the potential to generate international cooperation.
However, Estonia’s health service is under pressure due to factors such as an ageing population and growing demand for treatment. Business models in the sector could be more efficient. The focus of healthcare is often on treating the consequences of illness rather than prevention and early detection. Research shows that the system will not be sustainable if no changes are made. The application of modern technologies has been identified as essential for reducing expenditure.
Boosting expertise and exports
Against this background, the Estonian Connected Health Cluster helps business from abroad find information on, or partners in, Estonia’s health ecosystem so that they can capitalise on the country’s unique digital environment. In parallel, enhancing the cluster’s international recognition increases expert knowledge among its members, facilitates joint development and marketing of healthcare solutions, and boosts export capacity by familiarising companies with their target markets and providing them with the necessary contacts.
The cluster’s international profile is further bolstered by its membership of the European Connected Health Alliance, which helps establish connections to deliver better health and social care, and the ScanBalt network, a northern European accelerator for cooperation on health and the bioeconomy.
An initial strategy for the cluster was formulated for 2015-2018. Based on the experience gained from supporting the growth of health technology companies and the marketing of products and services, a follow-up strategy has been adopted for 2019-2023. An important feature of this new strategy is its clearer focus on technological developments, particularly digital solutions.
Total investment and EU funding
Total investment for the project “Estonian Connected Health Cluster” is EUR 1 200 000, with the EU’s European Regional Development Fund contributing EUR 600 000 through the “Cohesion Policy Funding” Operational Programme for the 2014-2020 programming period. The investment falls under the priority “Competitiveness of SMEs”.