Estonia to provide €8.5M for the construction of an industrial incubator in Narva

Estonia will invest €8,5M for the construction of an industrial incubator in Narva, Ida-Virumaa County with a total area of about 7K m². The investment, which will cover the design, construction, and equipment of the building, will be allocated from the European Union’s Just Transition Fund (JTF). The developer of the incubator will be the Ida-Viru Investment Agency Foundation (IVIA). Construction is expected to be completed by August 2026. 

The industrial incubator will have the capacity to accommodate up to 10 production units and up to five business service companies at the same time. The companies will be able to rent production buildings and operate there for up to five years. At the end of this period, the companies will establish their production unit and leave the incubator. According to the Minister of Economic Affairs and Information Technology Tiit Riisalo, the industrial incubator in Narva is intended to attract domestic and foreign industrial investment to Ida-Virumaa.

The industrial incubator will be also funded from the €25M budget of the Ida-Virumaa entrepreneurship support services diversification measure. The investment will be directed to the provision of incubation services in Ida-Virumaa County in financed incubators, and €20M will be directed to the construction of incubators in Narva and Johvi.

The Just Transition Fund is a funding mechanism with a €340M budget for Estonia, and it targets Ida-Virumaa County due to the oil shale industry in this region’s economy.