Abstract
The importance of new firm creation in the post-Communist economies of East Central Europe (ECE) has been subject to extensive research. This paper focuses on an area of entrepreneurship which has received relatively little attention in the transition economy context but which is of particular importance for the modernization of the transition economies: knowledge-based entrepreneurship (KBE), or new firm creation in industries considered to be science-based or to use research and development (RD on the other hand, difficulties in internationalisation can be identified as one of the key bottlenecks for the development of Estonian KBE. In the area of business relationships and networks, academic partners dominate.
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