Estonian regions differ in their challenges, assets, and opportunities. North Estonia - home to the capital, Tallinn - generates around 60% of the country's GDP and leads on many economic and well-being indicators. Demographic change may widen the gaps among regions, with non-capital regions projected to lose over 15% of their population by 2050. Each region has different economic bases and can draw on distinct assets - from South Estonia's innovation base in Tartu to Central Estonia's strong vocational education system. Place-based policy for regional development recognises and responds to these differences, and it can align national action with regional strengths and ambitions to help regions realise their potential.
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