Download Slovenian Industrial Policy (SIP)

THE REPUBLIC OF SLOVENIA
THE GOVERNMENT OF THE REPUBLIC OF SLOVENIA
Gregorčičeva 20–25, 1001 Ljubljana, Slovenia
Number:
Date:
Phone: +386 1 478 1000
Fax: +386 1 478 1607
E-mail: [email protected]
http://www.vlada.si/
31000-1/2013/5
6 February 2013
SLOVENIAN INDUSTRIAL POLICY - SIP
TABLE OF CONTENTS
INDUSTRIAL POLICY FOR GROWTH AND DEVELOPMENT - SUMMARY................................................... 3
INTRODUCTION ....................................................................................................................................... 6
1. VISION AND OBJECTIVES ..................................................................................................................... 9
2. COMPETITIVENESS OF THE SLOVENIAN ECONOMY .......................................................................... 13
2.1. The development of the Slovenian economy in the last decade ................................................... 13
2.2. Slovenia's rankings in international surveys of competitiveness ................................................... 17
2.3. Analysis of the implementation of measures in the field of entrepreneurship, competitiveness
and R&D activities ................................................................................................................................. 21
3. SLOVENIAN INDUSTRIAL POLICY GUIDELINES FOR ECONOMIC DEVELOPMENT .............................. 24
3.1. IMPROVING THE BUSINESS ENVIRONMENT .................................................................................. 25
3.1.1. Functioning of the rule of law ..................................................................................................... 25
3.1.2. Friendlier administrative environment ....................................................................................... 26
3.1.3. A more flexible labour market and education adapted to the economy.................................... 27
3.1.4. Encouraging tax environment ..................................................................................................... 28
3.1.5. Environmental, energy and spatial policy ................................................................................... 29
3.1.6. Comprehensive supporting environment for business innovation ............................................. 30
3.1.7. Improving access to finance ........................................................................................................ 31
3.1.8. Environment promoting creativity, entrepreneurship and innovation (CEI) .............................. 31
3.1.9. Effective management of companies, especially state-owned enterprises ............................... 32
3.1.10. Corporate social responsibility .................................................................................................. 32
3.2. STRENGTHENING ENTREPRENEURSHIP AND INNOVATION - FOCUSING SUPPORT ON NEW,
INNOVATIVE AND GROWING COMPANIES ........................................................................................... 33
3.3. RESPONSE TO SOCIAL CHALLENGES - ORIENTATION OF SUPPORT TO PROMISING INDUSTRIAL
AND TECHNOLOGY AREAS ..................................................................................................................... 36
3.3.1. The environmental and energy challenge and the rational use of natural resources ................ 39
3.3.2. The challenge of sustainable mobility ......................................................................................... 41
3.3.3. Food, health and ageing population ........................................................................................... 42
3.3.4. Potential of key enabling technologies - KET .............................................................................. 43
3.4. ACTIVITIES FOR THE LONG-TERM DEVELOPMENT OF INDUSTRY .................................................. 45
3.4.1. Promoting internationalisation and the utilisation of globalisation effects ............................... 45
3.4.2. Promoting industrial development and strengthening brands ................................................... 46
3.4.3. Restructuring companies in all stages of development .............................................................. 46
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4. EU INDUSTRIAL POLICY AND FINANCIAL FRAMEWORK FOR THE IMPLEMENTATION OF
DEVELOPMENT POLICY OBJECTIVES...................................................................................................... 50
4.1. COSME ............................................................................................................................................ 52
4.2. Horizon 2020 .................................................................................................................................. 52
4.3. Cohesion Policy for the period 2014-2020 ..................................................................................... 53
CONCLUSION ......................................................................................................................................... 54
ANNEXES................................................................................................................................................ 55
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INDUSTRIAL POLICY FOR GROWTH AND DEVELOPMENT SUMMARY
In order to maintain and improve economic competitiveness in this period of financial and
economic crisis, which has hit Slovenia harder than most other European Union member states, it
is important to strengthen the healthy core, represented by industry as the generator of
innovation, growth and jobs. Industry, which in the strict sense means the manufacturing and
processing industries, contributes 20% of total value added. In addition, more than a quarter of
service activities are directly related to industry. As evaluated by the European Commission, every
100 jobs created in industry create 60 to 200 new jobs in industry related activities. It is also a fact
that 80% of total private investment in research and development is made within the framework of
industry. Industry, therefore, is the main source of innovation, while also providing solutions to the
social challenges we are facing. Since industry is interconnected with other activities, the Slovenian
Industrial Policy addresses the entire economy.
The purpose of the Slovenian Industrial Policy (hereinafter referred to as SIP) is to set the priorities
for the development of industry and the economy for the period of the next financial perspective
2014-2020. SIP sets directives that already contain a range of measures intended to increase the
competitiveness in the business environment, to strengthen entrepreneurship and the innovative
capability of the economy, to respond effectively to social challenges, as well as activities for the
sustainable development of industry. SIP is one of the key policies created for achieving strategic
development objectives and is an important element in the preparation of Operational Programmes
for the 2014-2020 financial perspective, as well as a basis for the creation of 2-year programmes of
measures in the fields of entrepreneurship, competitiveness and technology.
The vision of SIP is to improve the business environment, to support entrepreneurship and
innovation, and to develop promising technological and industrial areas that correspond to social
challenges, in order to create the conditions for the continuous restructuring of existing industries
into energetically, materially, environmentally and socially effective industries of knowledge and
innovation, leading to longer-lasting and better employment opportunities, as well as increased
integration in international business. This is the main objective of SIP, which is reflected in the
increase in value added per employee (productivity), and the increase in the number of jobs for
highly educated and vocationally trained staff of all generations.
The basic condition for increasing investment in technological and economic development is the
improvement of the business environment by respecting the principles of sustainable
development. Improving the business environment refers to the rule of law, the administrative
environment, labour market and education system, tax environment, environmental, energy and
spatial planning policies, comprehensive environment supporting business and innovation, access to
financing, environment supporting creativity, entrepreneurship and innovation, effective
management of state-owned enterprises, and social responsibility of companies.
Another important area is strengthening entrepreneurship and innovation, which is the key to
expanding productivity, employment and the economy. The role of the government in this area is to
improve the framework conditions for innovation and entrepreneurship by means of horizontal
measures, which especially refers to the promotion of closer contact between the public research
and education sector and the economy, the promotion of development activities and technological
investments in companies, the promotion of non-technological innovation, employing developers in
companies, the mobility of highly skilled workers to the economy, and the encouragement of
innovation in companies. Given the fact that innovative and emerging companies contribute the
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most to achieving the objectives of higher value added per employee and at the same time to an
increase in employment, special attention will be paid to the promotion of such companies.
The horizontal measures will not be enough for economic recovery and the achievement of
development objectives. Therefore, it is necessary to find new sources of economic growth and
development which are based on smart specialisation that takes into account previous investments
and competencies. New sources of growth are represented primarily by responses to social
challenges with the introduction of a new paradigm of development, resulting from concepts of
green growth (OECD), the green economy (UNEP) and a materially-efficient and low carbon society
(EC), which are based on improving efficiency (energy, material, environmental and social) instead of
relying on increasing consumption of space, raw materials and energy. Therefore, SIP defines
priority areas based on the challenges, opportunities, existing competencies, capabilities and
natural resources, in order to promote the development of technologies and their application in
industrial sectors.
These priority areas within the challenge are as follows:
Challenge
Environmental and
energy challenge and
the efficient use of
natural resources
based on sustainable
production and
consumption
Priority technology areas*
Key industrial sectors*
Energetics / ‘Smart’ systems
Sustainable construction
Environmental technologies (technologies
for the efficient use of energy, including the
economical use of energy, renewable energy Manufacturing (especially woodprocessing, metal and electrical
technologies, technologies for increasing
industry and electronics)
material efficiency etc.)
Sustainable mobility
Technologies for sustainable mobility
Food, health and
ageing population
Biotechnology and other challenge-related
technologies
Potential KET - Key
Enabling Technologies
Nanotechnology, micro- and
nanoelectronics, photonics, biotechnology,
advanced materials, advanced
manufacturing and process technologies
Chemical and process industry
Automotive industry
Pharmaceutical industry
Food-processing industry and
sustainable food production
Sustainable tourism
ICT
Electrical industry and electronics
New materials
Metal-processing industry,
engineering and tool-making
NOTES:
* All areas of technology and industrial sectors are interconnected and there is no clear division between them.
These technologies also support other industrial sectors; therefore, only key sectors of applications are stated
within the framework of specific technologies. Industrial sectors do not relate to the definitions according to
the SKD, but are implicit in a broader view.
Source: Ministry of Economic Development and Technology
SIP also defines activities for the long-term development of industry and the economy, which
include the promotion of internationalisation and the use of the effects of globalisation to increase
the involvement of the economy in international business, the promotion of industrial design, which
focuses on strengthening brands, and encouraging the restructuring of companies in all stages of
development, in order to make it easier to accommodate to the rapid changes we are witnessing in
the world today.
In view of the fact that national development funds are increasingly limited, the efficient
withdrawal of European funds is crucial for acquiring the development funds needed. Therefore,
the conclusion of the document contains a presentation of the main financial resources of the EU for
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the implementation of development policies in the next financial perspective, including the
Programme for the Competitiveness of Enterprises and SMEs - COSME, the Framework Programme
for Research, Development and Innovation - Horizon 2020, and Cohesion Policy.
SIP will help strengthen the competitiveness of the economy and promote structural change, but it is
necessary to be aware that companies and the economy are the real agents of change and
development.
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INTRODUCTION
More than other EU member states, Slovenia is facing a recession, with the slowdown in the global
economy and a decline in international competitiveness rankings. Faced with the challenges of
globalisation created by the global financial crisis, the governments of EU member states and the
European Commission have realised that in order to maintain the stability of the EU economies, it is
necessary to maintain a healthy core, represented by industry as a generator of innovation, growth
and jobs.
The European Commission has defined the guidelines of the Integrated Industrial Policy for the
Member States to incorporate into national development documents in the context of national
strategies for achieving the strategic objectives known as Europe 2020. The guidelines were
formulated on the basis of a thorough analysis of the strengths and weaknesses of individual sectors of
European industry, which intensified in the 15 years prior to the onset of the financial and economic
crisis1, but still requires active measures and incentives to face global challenges.
The objective of the Integrated Industrial Policy of the EU is to strengthen the innovative capacity of
industry. The measures are aimed at the more rapid development and commercialisation of
products and services, as well as ensuring that the economy and society focus on the inclusive and
effective use of resources. At the same time, it points out the need to encourage the creation,
growth and internationalisation of small and medium-sized enterprises, which, in the broader
context of European industry, provide jobs for almost two thirds of employees and a large
proportion of potential for growth and jobs.
Like other countries effected by the recession, Slovenia is also facing the challenge of how to
proceed. The economic impetus we received due to the expansion of markets after accession to the
EU and the stabilisation of the Western Balkans has faded; competition in global markets by
emerging economies (BRICS2) is becoming stronger, while limited access to strategic, personnel,
financial and other resources dictates the need for more effective management. The economic crisis
has also led to a change in the global agenda, in which the environment no longer appears as a
limitation on growth, but finding green solutions offers development opportunities. The previous
traditional passive industrial policy, which focused on horizontal measures, the reduction of the role
of the state and anti-trust policy, is no longer appropriate or sufficient to ensure rapid growth.
To ensure its economic and political sovereignty, Slovenia needs the economy, particularly export
industries. It needs a clear development strategy (Slovenia's Development Strategy - SDS), directed
towards resolving current and expected social challenges, and realistic policies, particularly the
comprehensive Slovenian Industrial Policy (SIP), which will strengthen the global competitiveness
of the economy. The prerequisites for the effectiveness of the industrial policy are the following: a
different development paradigm (based on improving energy, material, environmental and social
efficiency, rather than on the use of space, raw materials and energy), implemented structural
reforms, consolidation of public finances, and a functioning legal and banking system.
SIP encompasses a range of directives and measures intended to increase the competitiveness of
the business environment, to strengthen entrepreneurship and the innovative abilities of the
economy, to respond effectively to social challenges, as well as activities for the sustainable
development of industry. As one of the key policies for achieving strategic development objectives,
1 It led to significantly increased productivity with a more qualified workforce and improved energy efficiency of production, a redirected
and globally optimised workforce and capital investments, achieved a remarkable development of new products for new and emerging
markets, advanced greatly in the field of environmental protection, and thus greatly increased export markets. This has been positive for
some sectors, while others have been more permanently affected.
2 BRICS - Brazil, Russia, India, China and South Africa.
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it is also one of the frameworks for coordinating the policies of industry-related activities3. At the
same time, SIP is an important element in the preparation of Operational Programmes for the
2014-2020 financial perspective (especially the parts that refer to strengthening research,
technological development and innovations, and increasing the competitiveness of SMEs), as well
as a basis for creating 2-year programmes of measures in the fields of entrepreneurship,
competitiveness and technology.
The central challenge of maintaining economic growth and competitiveness, which countries,
including Slovenia, are currently facing, is how to ensure the development of competences and how
to respond to social challenges that require immediate action. The concept of ‘smart specialisation’,
using national and regional competitive advantages, features, knowledge and competences, is now
coming to the fore. Based on the existing economic infrastructure and knowledge acquired during
previous periods, it is possible to start new development and improve competitiveness in both the
domestic and international environment, by making changes to the development paradigm, and
integrating policies, also in terms of the concept of a lead market4, with revitalisations, updates, and
innovative approaches.
A decisive step in the direction of smart specialisation is represented by three complementary
development policy instruments, introduced in 2009 and 2010: Slovenian Economy Development
Centres, Competence Centres and Centres of Excellence. The Development Centres are the
incubation entrepreneurship environment intended for the integration and growth of young and
technologically advanced companies with large and established companies in crucial areas
(automotive and electrical industry, electronics, energy, pharmaceuticals and biotechnology,
information and communication technology, wood processing industry, logistics, new materials). The
partners of the Competence Centres are the leading Slovenian companies. There are seven Centres,
established with the purpose of strengthening the competitiveness of Slovenian industry in
international markets the long term. This is based on the sustainable development of technological
and non-technological competences (new business models, productivity and value added) crucial to
the introduction of new products and services into the market. The Centres of Excellence are led and
managed by public research organisations. Their main concern is the creation of environments and
consequently new knowledge, which are the foundations for applied research and for the
development of potential for its use, in both domestic and foreign markets, while the Centres'
horizontal priority is to accelerate the transition to an energy-efficient economy with low greenhouse
gas emissions. Centres of Excellence, Competence Centres and Development Centres together form a
harmonised and connected chain of value added to key strategic and priority areas for Slovenia. In an
oriented and targeted way, through applied and R&D solutions, these centres all promote knowledge
and technology to enter existing and new markets and market niches in the form of innovative
products and services. These then provide a solid foundation for new, better and more sustainable
jobs and results in a nationwide increase in prosperity. Industrial and related policies must take into
account the current investments in these instruments and upgrade them accordingly, in order for the
best possible joint effects of these investments to be achieved.
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The concept of industry relates to manufacturing (activity C according to SKD - Standard Classification of Activities), mining (B), energy
supply (D), water supply (E) and construction (F), while industry related activities include also trade, transportation and storage , hospitality
industry and tourism, information and communication activities, financial and insurance activities, cultural and creative industries and
other support services.
4 A lead market for a specific product or service is a geographical area where the diffusion process of an internationally successful
innovation (technological or non-technological) first took off and is sustained and strengthened through a wide range of services. Through
a lead market and with coordinated measures, Slovenia can enable its economy to develop products and services faster and to test them in
practice, which leads to a better competitive position in world markets. European Commission: A Lead Market Initiative For Europe:
http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/#h2-2
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The competitiveness of the economy is influenced by a range of national policies, which requires a
high degree of harmonisation of the development objectives and implementation measures of the
industrial policy with other structural policies. First, to increase competitiveness, it is essential to
consider basic business terms and conditions which actualise the fundamental principles of
sustainable development, such as encouraging a legislative environment without unnecessary
bureaucratic hurdles, the effectiveness of the rule of law, efficient and highly professional public
administration which actively promotes sustainable consumption and production, the improvement
of business and production-technological infrastructure, improved access to finance and the
responsible drawing of European funds (by taking advantage of numerous opportunities to support
the green economy measures), efficient and gradually greener public procurements, and labour
market flexibility. The second set of policies includes those that directly affect the growth and
development of companies and the economy. These are policies for research, development and
innovations, entrepreneurship policy, internationalisation policy and the policy of foreign direct
investment. The third set consists of policies with a strong component of the industrial policy, such as
environmental, traffic, energy, regional, tax and education policy. The condition required for greater
competitiveness is an effective coordination and planning of the links between the individual
policies, with a well considered exploitation of the full potential in these areas, which shows as
emphasised support for measures leading to the simultaneous achievement of goals in various
areas.
In the last decade, the implementation of the industrial policy in Slovenia was incomplete and not
integrated between individual ministries, and thus, it insufficiently improved the poor state of the
fields of material and energy intensity in industry. The Programme of Measures for Promoting
Entrepreneurship and Competitiveness 2007-2013 is more focused, especially in regards to financial
incentives in the form of non-refundable and refundable funds for companies in all stages of growth
and development. These are horizontal measures, without predetermined priority technological or
industrial areas.
Numerous debates are taking place on the effectiveness of the existing instruments of development
policy. However, project monitoring which has been carried out so far and presented in the Analysis
of the Implementation of Measures in the Field of Entrepreneurship, Competitiveness and RDI
Activities (section 2.3.), according to effectiveness indicators, shows that the majority of companies
participating have achieved the objectives and results as set out in the projects. The fact is that in the
future it will be necessary to update the current forms of development assistance, based on
evaluations of individual instruments, and strengthen the inter-ministerial co-ordination of policies
for achieving development goals. It is necessary to address the dispersion and lack of transparency of
individual instruments for the promotion of competitiveness of the economy. The instruments are
implemented in a number of ministries and agencies, which certainly does not contribute to a
greater development breakthrough for Slovenia. It is also crucial that an important place will be
taken by non-financial measures, which will lead to the creation of a more efficient business
environment for enterprises and foster the transition to a green economy.
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1. VISION AND OBJECTIVES
The vision: "By improving the business environment, supporting entrepreneurship and innovation,
and through the development of promising technological and industrial areas that address social
challenges, SIP will create conditions for the continuous restructuring of existing industry into
energy, materially, environmentally and socially effective industry of knowledge and innovation for
new, more durable and better employment opportunities, and greater integration into the
international flows of business."
As one of the key policies in the context of Slovenia's Development Strategy, SIP5 will be adopted as
an intersectoral policy with the development commitment of the Government, with ministries'
responsibilities for its implementation, and under the operational control of the Ministry of the
Economy.
Based on SIP, other strategic documents (see Figure 1), a realistic assessment of the situation and the
identification of companies' and industries' potential for growth, ambitious objectives have been set,
which will be followed by implementing and control measures. Implementing measures will be
developed in the field of entrepreneurship, competitiveness and technology in the form of 2-year
programmes of measures. These measures will build on existing potentials, as well as create new
development potentials on the basis of skills and competences. This will lead to the stimulation of
greater and longer-lasting capital investment in Slovenia and increase the opportunity for more
companies to penetrate foreign markets, which is also the objective of the measures of the adopted
Research and Innovation Strategy of Slovenia 2011-2020 (RISS). SIP will also be the basis for action
plans for certain specific areas, based on initiatives from the economy.
SIP will also constitute one of the bases and guidelines for the development programmes of other
government policies which have an impact on industrial policy, and which connect with SIP to
achieve Slovenia's key development objectives, for example regarding energy, environmental and
spatial policies (National Energy Concept, Climate Strategy). These are important for the
development process; they foster the investment cycle and decisively affect the cost, price and
innovation ability of industry and industry related activities.
SIP must take into account social challenges, such as (i) the protection of the environment in
connection with limited access to natural resources, with a comprehensive evaluation of resources
and ecosystem services, and with appropriate pricing, considering the natural resources and limits of
natural capital, energy issues and climate change adaptation, (ii) sustainable mobility (iii) ageing and
health of the population, associated with demographic change and providing adequate levels of food
self-sufficiency (iv) the pressures of competitive countries in the context of globalisation, and (v) the
restructuring of companies and industries. These challenges need to be transformed into
opportunities for intensive development and growth in the domestic, and especially, foreign
markets. The opportunities for developing innovative industry and innovative and socially
responsible economy lie in addressing social challenges and are the guarantee of successful
sustainable development.
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The definition of industrial policy as proposed by the OECD is any kind of government policy intervention
that seeks to improve the business environment or change the structure of economic activity in favour of sectors,
technologies or activities which are deemed to offer better potential for economic growth or social well-being.
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Figure 1: Placement of SIP in the Government Development Policy in the next EU financial
perspective 2014-2020
Slovenia's
Development
Strategy - SDS
RISS
Horizon 2020
Act. plan for FDI, internat.
COSME
Action plan for SBA
EU Cohesion Policy
‘Slovenian
industrial
policy’ - SIP
Programme of
measures for
entrepreneurship,
competitiveness
and technology
Development
programmes of
other policies
‘Regulations
on the
Financing of
Projects’
Action plans for
individual
specific areas
Source: Ministry of Economic Development and Technology
Slovenia has not yet realised the strategic development objectives in the economic, environmental
and social fields, nor in involvement in the international environment. Since the beginning of the
economic and financial crisis, it has even moved farther away from them. Now we have the
opportunity to contribute to effectively achieve these objectives, also by changing the development
paradigm.
Key problems that Slovenia is facing:
- a decline in competitiveness in recent years,
- lagging behind in productivity (or value added per employee) in relation to the EU average,
- lagging behind in material effectiveness in relation to the EU average,
- high cost of labour,
- an increase in structural unemployment,
- a decline in the quality of corporate management,
- divergence between employers' needs and the available labour supply,
- the high level of indebtedness of the Slovenian economy and credit crunch in the banks,
- deficiencies in the implementation of development strategies and weak innovation and
commercialisation of knowledge (patents, designs and trade marks), which is also the result
of poor cooperation between science and industry, with a large lag in the field of
organisational, non-technological innovation,
- excessive energy intensity with excessive greenhouse gas emissions,
- deficient strategies in the management of state assets, with unclear economic objectives and
priorities,
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-
ineffective functioning of the rule of law regarding the protection of creditors' rights and
financial discipline,
over-regulation of business and bureaucratisation and the non-fulfilment of legislation, which
imposes administrative and financial burdens,
a lack of cooperation between key participants (ministries, implementing institutions, unions,
chambers of commerce, political parties),
too low a threshold for accepting risks of the economic sphere and lack of knowledge on how
to reduce risks,
a lack of institutional (state) mechanisms to vertically integrate innovation, scientific
achievement and industry.
With a comprehensive and innovative industrial policy, we want to achieve the following:
The main objective by 2020:
- To restructure existing industries into energy, materially, environmentally and socially
effective industries of knowledge and innovation for new, longer lasting and better
employment opportunities, and greater integration in international business.
o Indicator: increase in value added per employee from 60% to the EU-27 average
of 80%.
Specific objectives (related to the objectives of the SDS and the budget):
- Improving the competitiveness of the business environment.
o Indicator: higher placement in competitiveness rankings (IMD - baseline 2012:
51/59 countries, WB-Doing Business – baseline 2012: 37/183 countries).
- Improving access to affordable sources of funding to support the development and growth of
companies in all stages of development.
o Indicator: development of financial markets - higher WEF ranking (baseline
2012-13: 128/144 countries),
o Indicator: the value of resources specifically intended to support the growth and
development of companies with suitable financial conditions.
- Promoting innovation and corporate investment in research and technological development.
Connecting participants from research and development to the market in various forms of
clustering, and the efficient organisation of institutions of knowledge, research, executive
agencies, chambers and companies across the entire value chain (e.g. between researchers
and companies, from manufacturers of individual components to placement on the market).
o Indicator: improved technological readiness - higher WEF ranking (baseline 201213: 34/144 countries),
o Indicator: higher share of medium- and high-technology intensive products in
total exports (IMAD).
- A positive impact on sustainable economic and social development - socially responsible
management of companies, high ethical standards and the promotion of promising
technological and industrial areas that address social challenges.
o Indicator: increased share of technology intensive industries in added value
(IMAD),
o Indicators: the emission intensity of the economy, the output of emissionintensive industries, energy intensity in manufacturing activities, the share of
renewable sources of energy, the intensity of tree-felling (adapted from IMAD
Development Report 2012), the size of the sector of ‘environmental goods and
services’, share of eco-innovation, the number of companies included in the
EMAS scheme, the material efficiency of the economy, green jobs, number of
green patent applications at EPO, the proportion of green public procurement.
- Orientation to the active internationalisation of the economy to increase the involvement of
the economy in international business.
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o Indicator: an increase in exports (SORS).
o Indicator: an increase in foreign direct investment (BS, OECD).
- Development of creative, innovative, enterprising and competent personnel and adaptation
of the education system to the needs of industry (for example: the promotion of staff
mobility from universities to industry and back).
o Indicator: an increase in employment, especially for highly-educated and
professionally trained staff, and reduction of structural unemployment (SORS).
o Indicator: strengthening entrepreneurship - raising the GEM ranking (baseline
TEA - total early-stage entrepreneurial activity, 2012: 54/54 countries).
This requires a renewed and focused approach to promote the Slovenian economy, which means:
- Integrated development and an innovative environment for technological and business
development as a key component of SIP (link to the measures of RISS6), which includes
horizontal measures to support innovation, business and marketing skills in the economy and
sectoral approaches to their realisation.
- More efficient investment of non-refundable and refundable funds (both by state and
companies) and tax incentives for the development of the key development priorities:
technological and non-technological innovation, new, innovative and growing companies, the
development of promising areas and activities (strengthening brands, internationalisation,
restructuring, sustainable technologies and solutions) that address social challenges.
- Sustainable development of industry: a green development innovation cycle in industry promoting the efficient use of raw materials and energy, the development of technologies
and products for renewable energy sources, sustainable supply to the economy with
competitive energy.
- Education and training for the labour market: upgrading competences and skills of
individuals, new forms of education and training.
- Responsible drawing of EU structural funds in the financial perspective 2014-2020, in
accordance with development priorities. Based on the evaluation of existing measures and
investment effects, it is necessary to ensure the continuity of positive measures, and support
successful, competitive national projects.
- Encouraging participation in EU programmes, especially Horizon 2020 (the Framework
Programme for Research and Innovation) and COSME (Programme for the Competitiveness
of Enterprises and SMEs).
- Stimulating demand for larger demonstration projects in industry - sets of user solutions
that meet the commitments and obligations of Slovenia's action plans and climate goals.
- Creating a system in public administration (including e-system), which will also allow SMEs
to participate transparently in public tenders.
SIP establishes a basis for an efficient system of support for the development of industry and the
economy, and guidelines for implementing the measures of the Government, ministries, government
departments and executive institutions. Based on the orientation of SIP, the implementing measures
will be prepared in close cooperation with the economy and other key participants that are
important for the continuous implementation of the industrial policy. The Ministry of Economic
Development and Technology, being the responsible ministry, will annually monitor the overview
of the implementation of SIP guidelines (Chapter 3), which are enclosed in Annex 6 of SIP. An
approximate amount of financial resources for implementing the SIP guidelines in the period 20142020 is included in Annex 7 of SIP. Implementing guidelines and achieving the objectives set in SIP
will be the subject of evaluation by external experts. The implementation of SIP will also be monitored
in the context of dialogue with social partners (Economic and Social Council).
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Research and Innovation Strategy of Slovenia
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2. COMPETITIVENESS OF THE SLOVENIAN ECONOMY
2.1.
The development of the Slovenian economy in the last decade
The beginning of the 21st century was very promising for Slovenia. Until the beginning of the crisis in
the second half of 2008, we achieved above average economic growth, about 3 to 4% per year, and
thus were slowly catching up with more developed EU countries. Slovenian gross domestic product
(GDP) per capita at purchasing power parity had already reached 91% of the EU average in 2008. In
2009, a steep decline occurred as a result of the financial and economic crisis. GDP shrank by 8%. This
was followed by weak positive growth, and then another slight decline in 2011 (see Figure 2).
Slovenia has thus deviated from the average GDP per capita in purchasing power parity, which in
2011 fell to 84% of the EU average. In the three years since the beginning of the economic crisis,
Slovenia's deviation from the EU average has increased by 7 percentage points.
Figure 2: GDP growth in Slovenia and the EU from 2000 to 2011
Source: Eurostat Portal Page – National Accounts, 2012
A decline in GDP per capita compared to the EU average in 2009 resulted mostly from a relatively
greater drop in productivity in Slovenia than in the EU. In 2010, when employment also largely
adjusted to the economic situation, we recorded a relatively bigger reduction in employment7.
Nevertheless, Slovenia still ranks highest among the new EU member states, and also higher than
Greece and Portugal. Forecasts about future economic growth in Slovenia are uncertain, as well as
about the entire world economy, which is trying to restore growth and confidence. In addition to the
weak financial markets, which are declining due to long-term debt and financial crisis in the euro
zone, the greatest risk to recovery is posed by a fall in domestic demand and a decline in demand in
the foreign markets where the Slovenian economy is traditionally present. In addition, the
connections needed to enhance access to new, emerging global markets, where Slovenian
companies generally access only indirectly, are not sufficiently developed.
 Structure of the economy by activities with a focus on manufacturing
The contribution of individual activities to added value and GDP has changed considerably over the
last decade (see Figure 3). There was a slow decline in manufacturing activities in the structure of
added value and GDP, which was particularly strong in 2009, then the trend turned upward again.
7
IMAD: Development Report 2012
13
The growth in construction by 2008 is also shown, followed by a decline which has lasted for several
years and has not yet stopped.
Figure 3: The contribution of individual activities to GDP in Slovenia from 2000 to 2011
Source: IMAD
(Figure: Added value of individual activities in GDP: C – Manufacturing, BDE – Mining, electricity and
water supply, treatment of sewage, environment remediation, F – Construction, GHI – Trade and
repair of vehicles, traffic and storage, hospitality activities, J – Information and communication
activities)
On average, the contribution of Slovenian manufacturing to total value added is higher than in the
EU. While this contribution is approximately 15% in the EU, it is approximately 20% in Slovenia (in
2011: 20.2%). Although Slovenia is a small country, it has a fairly high degree of diversification of
industry. The structure of manufacturing activities in terms of technological complexity no longer
deviates significantly from the EU average (see Figure 4), but the difference is more pronounced in
productivity, which is the key to improving competitiveness.
Figure 4: The share of industry in Slovenia and EU-25, according to technological intensity, in 1997
and 2007
Figure: High-technology industries I Medium-high-technology industries I Medium-low-technology industries I Low-technology industries
14
NOTE: Division of industries according to technological intensity results from the OECD classification (translated at three-digit level of SKD
2002):

High-technology industries: DG24.4 Manufacture of pharmaceuticals, DL30 Manufacture of office machinery and computers, DL32
Manufacture of radio, television and communication equipment, DL33 Manufacture of medical and optical instruments, DM35.3
Manufacture of aircraft and spacecraft

Medium-high-technology industries: DG24 Manufacture of chemicals and chemical products (without DG24.4), DK 29 Manufacture
of machinery and equipment, DL31 Manufacture of electrical machinery and apparatus, DM34 Manufacture of motor vehicles,
trailers and semi-trailers, DM35 Manufacture of other transport equipment (without DM35.1 and DM35.3), DL33 Manufacture of
medical and optical instruments

Medium-low-technology industries: DF23 Manufacture of refined petroleum products, DH25 Manufacture of plastic products, DI26
Manufacture of other non-metallic mineral products, DJ27 Manufacture of metals, DJ28 Manufacture of metal products, DM35.1
Building and repair of ships and boats

Low-technology industries: DA Manufacture of food products, beverages and tobacco, DB Manufacture of textiles and textile
products, DC Manufacture of leather and leather products, DD Manufacture of wood and wood products, DE Manufacture of pulp,
paper and paper products, publishing and printing.
Source: EU industrial structure 2011
The economic crisis has led to an intensive reduction in the less competitive parts of industry and an
increase in the share of technology-intensive industries in the structure of added value. Thus, in
Slovenia in 2009, the share of high and medium-high technology industries to added value in
manufacturing exceeded the EU average. The relatively high proportion of these activities In Slovenia
results primarily from a higher relative volume of the pharmaceutical and electrical industries, while
the shares of most other technology-intensive industries are lower than in the entire EU. The
proportion of technologically less demanding activities (medium-low and low demanding) fell below
the EU average, which is mainly due to the extensive contraction of the metal industry during the
crisis and a further decline in the textile industry in 2009. Despite the shift towards more technologyintensive and generally more productive activities, catch-up in productivity levels in manufacturing
has slowed down in the recent years8.
Productivity measured by added value per employee reached 60.6% of the EU average in 2010,
which is about the same as in 2008 (see Annex 1). The highest level of productivity in comparison to
the EU average has been achieved in the pharmaceutical industry, the manufacture of vehicles and
vessels, rubber and plastic products and other non-metallic mineral products. Among the activities
with the lowest level of productivity in comparison to the EU, three technologically advanced
industries stand out (chemical and electrical industries and mechanical engineering), and some lowtechnology industries as well (textile, leather and furniture industries)9.
The area of manufacturing activity is the most important in terms of jobs, as well as asset value. In
2011, 12.2% of companies operated in manufacturing, employing 36.8% of all workers. They
generated 30.5% of total revenue, with 23% of all funds10. The most important manufacturing
industries are: metal industry, pharmaceutical industry, manufacture of electrical equipment,
manufacture of motor vehicles, manufacture of other machinery and equipment, manufacture of
rubber and plastic products, and chemicals. In 2011, these industries contributed over 60% of added
value and employed more than half of workers in manufacturing.
Value added per employee in manufacturing in 2011 amounted to EUR 36,014, which is slightly less
than the average of all activities. In 2011, above average added value per employee was achieved in
companies operating in the manufacturing of the following products: pharmaceutical and
preparations (EUR 99,144), beverages (EUR 61,965), chemicals and chemical products (EUR 51,624),
motor vehicles, trailers and semi-trailers (EUR 42,897), metals (EUR 40,582) and paper and paper
products (EUR 36,228).
8
IMAD - Development Report 2012
IMAD - Development Report 2012
10 AJPES: Information on the business operations of companies in 2011
9
15
Manufacturing is also extremely important due to the fact that in Slovenia approximately 80% of all
R&D activities in the business sector are implemented in manufacturing, of which approximately onethird is in the production of pharmaceutical products and preparations and another third in the
manufacture of metal products, computers, electronic and optical products, electrical equipment,
machinery, motor vehicles, and other vehicles and vessels. Industry has also a significant effect on
productivity and employment in other activities. It is estimated that for every 100 jobs created in
industry, 60 to 200 jobs are created in other sectors of the economy that depend on industry.11
According to the European Commission12, at least 25% of employees are employed in related services
that depend on industry as suppliers or customers, which means that the impact on the economic
trend of manufacturing is still large and, therefore, needs special attention. From this perspective,
tourism is also seen in the context of industrial policy as a branch that provides development
opportunities for Slovenia (see the Development Strategy of Slovenian Tourism 2012-201613).
 Structure of the economy according to company size
In 2011, slightly more than 130,000 business entities were operating in Slovenia (of which, 57,798
were companies and 73,072 sole proprietorships). Regarding the structure of companies by size, the
vast majority (99.8%) were micro, small and medium-sized enterprises (hereinafter referred to as
SMEs; see Table 1). These included only a few entrepreneurial stars doing business successfully both
at home and abroad and dynamically developing and growing. Fast-growing, technologically
advanced and innovative SMEs represent potential for the future of Slovenia, and therefore they
should be given special attention.
Slovenian SMEs exceed the average contribution of European SMEs in terms of employment and
contribution to added value in the economy. They contribute 63% to the added value and 70.6% of
the employment in the private, non-financial sector. 33% of SMEs are active in high-tech
manufacturing activities and knowledge-intensive service sectors, which are crucial for the future
competitiveness of the country14.
There are slightly fewer than 700 large companies, which are also of great importance, as they
constitute the engine of the Slovenian economy and also enable smaller companies to access foreign
markets. Companies in high-technology industries are mostly medium-sized and large enterprises.
Most micro and small companies (93%) operate in low-technology industries, which generate only
half of added value.
Table 1: Firms according to size (sole proprietorships are not included), 2011
Size
Companies
Employees
Revenue*
Exports
Number
in %
Micro
53,966
93.4
28.4
17.2
9.6
Small
2,397
4.1
15.9
13
9.4
Medium
740
1.3
16.4
15.4
14.2
Large
695
1.2
39.2
54.4
66.8
57,798
100
100
100
100
TOTAL
Shares in %
*Net sales revenue
Source: AJPES
11
Communication of the European Commission: Stronger European industry for growth and economic recovery, 10/10/2012 (http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF)
12 COM(2010) 614
13 http://www.mgrt.gov.si/fileadmin/mgrt.gov.si/pageuploads/turizem/Turizemstrategije_politike/Strategija_turizem_sprejeto_7.6.2012.pdf
14 http://europa.eu/rapid/press-release_MEMO-12-783_en.htm?locale=en
16
2.2.
Slovenia's rankings in international surveys of competitiveness
Slovenia's international competitiveness has deteriorated in the last period (see Annex 2). According
to international research, the main reasons for the lower ranking are:
- development of the financial market: access to loans, bank stability, access to financial services,
undeveloped financing through the equity market, the availability of venture capital,
transparency of financial institutions, corporate indebtedness.
- labour market efficiency: flexibility of wage determination, hiring and dismissing, wage and
productivity ratio, the contribution rate for social security, attractiveness of the business
environment for foreign qualified staff, adaptability of people to change and new challenges.
- the rule of law and the functioning of institutions: the efficiency of government spending, the
effectiveness of the legal system in settling disputes and amending regulations, the efficiency of
administration, the protection of the interests of minority shareholders, trust in politicians, the
burden of government regulations, balancing of the budget, the impact of government ownership
on the business activities of companies, policy flexibility to changes in the economy, the
effectiveness of the implementation of government decisions, the effectiveness of supervisory
boards in exercising control over corporate governance, the credibility of managers in wider
society.
- domestic and foreign investment, infrastructure, taxes: the extent and effect of taxes, the
prevalence of foreign ownership, technology transfer, the risk of migration of R&D facilities
outside the country, the risk of the relocation of services outside the country, inward and outward
foreign direct investment, the impact of environmental protection legislation on the
competitiveness of companies.
- entrepreneurship, innovation, training: the amount of personnel training, technology absorption
at the level of enterprises, government procurement for advanced technology products,
availability of scientists and engineers, the state of cluster development, value chain breadth, the
sophistication of the manufacturing process, the support of technological development,
innovation and entrepreneurship through legislation and investment made by public and private
sector, the development of technological cooperation between enterprises, the innovation
capability of enterprises, the adequacy of university education for the needs of the economy,
knowledge transfer between research institutions and companies.
In 2012-2013, the research World Economic Forum (WEF), which reflects the overall competitive
picture of individual countries, ranked Slovenia 56th out of 144 countries, one place higher than a
year ago and 11 places lower in comparison to two years ago. Slovenia received the best reviews in
the field of higher education and training, and health and basic education, followed by innovation,
technological readiness, infrastructure and the efficiency of the goods market. The most problematic
areas of Slovenian competitiveness in the last three years are (i) the efficiency of the financial
market, and (ii) the efficiency of the labour market. According to the survey findings, the biggest
obstacle to doing business in Slovenia is access to finance, followed by the inefficiency of
government bureaucracy, rigid labour legislation, tax rates and tax regulation.
In the ranking implemented by the Swiss Institute for Management Development (IMD), which
assesses the economic and business aspects of competitiveness, Slovenia kept 51st place out of 59
countries covered in the study in 2012, after it had suffered the biggest fall among the countries
studied in 2010 by falling 20 places. Slovenia's rankings reflect the state of the economy in the past
year. Measures recommended for improving competitiveness include reducing government deficits,
increasing labour market efficiency, restructuring of the manufacturing and service sectors and costcutting in the public sector. Measures for economic growth are also emphasised. They are linked to
the rise of an innovative culture, the quality of the education system, infrastructure and
internationalisation and cooperation between science and industry.
17
According to the World Bank survey ‘Doing Business’, which analyses the difficulty of doing
business in different countries, Slovenia kept the same ranking in 2012 as in the year before. It ranks
37th out of 183 countries studied, which is a relatively high ranking. A huge improvement in ranking
by 16 places was evident in 2011, but this was largely the result of changes in methodology (the
‘employment’ indicator was excluded and Slovenia has ranked poorly in this area).
Also in the context of research, Global Entrepreneurship Monitor (GEM), which examines
conditions in the field of entrepreneurship, Slovenia's recent ranking is a cause for concern. Earlystage entrepreneurial activity among the adult population has declined for the third consecutive
year, and in comparison to 2008, when 6.4% of the population started a business, dropped by almost
half (2011: 3.65%) and reached its lowest level since 2004. This is not solely due to the recession, but
also the unregulated business environment and some other business conditions that individuals must
consider when deciding whether to set up a business. Slovenia has been participating in this global
study for a decade, but this is the first time we ranked last in this category out of 54 countries. In
2011, Slovenia also showed a significant reduction in overall business activity - fewer companies
were established and fewer companies were operating, but also fewer entrepreneurs closed their
companies15. Compared with developed innovative economies, Slovenia lags behind in corporate
culture, national corporate legislation, the effectiveness of government programmes and
entrepreneurship education.
On the innovation scale EIS - Europe Innovation Scoreboard which classifies countries into four
groups, Slovenia ranked from 2009 to 2011 in the second best group of innovation followers, but
with a below-average performance in the group. Prior to this, Slovenia had ranked in the third best
group of moderate innovators. Human resources, links and entrepreneurship were emphasised as
relative advantages, while intellectual property and innovators were considered as relative
weaknesses. The decline in innovation expenditure, which is not related to R&D activity16, and the
difference between investments in innovation and tangible results of these investments (for
example, growth of high-tech exports) is a cause for concern.
Based on the international analyses of competitiveness and the experts' findings in the framework of
the OECD and EU research, we have carried out a SWOT analysis of the Slovenian economy (see
Table 2).
15
16
http://www.gemslovenia.org/news/?page=1#CmsC163E1C209E3
http://www.proinno-europe.eu/inno-metrics/page/innovation-union-scoreboard-2011
18
Table 2: SWOT analysis of the Slovenian economy
STRENGTHS
WEAKNESSES
-
-
-
-
-
-
-
-
A favourable geo-strategic position in Central
Europe and in the EU (proximity to major European
regions in northern Italy, Germany, Austria, access
to markets in the Western Balkans).
Natural resources (wood, soil, water, energy) and
other potentials for a transition to a green economy
(knowledge, innovation, investment made so far and
competences).
Tradition and knowledge in the field of
manufacturing.
Good standards of education, and traditionally good
technical literacy.
The potential for growth in the service sector.
EU unified market, which is a springboard to global
markets.
EU membership provides a large internal market,
security and solidarity in achieving objectives, as
well as a quality background and efficient processes
for the formation, monitoring and implementation
of policies.
Good relations and agreements with various
countries, and a network of Slovenian
representative offices abroad.
The export orientation of the Slovenian economy.
Service activities, well-developed health and spa
services and hospitality and tourism activities.
A partly established supportive environment.
R&D investment made so far.
Tax reliefs (for R&D investment).
Complex scientific and research activity in certain
sections of the public sector, with well-developed
international
cooperation
between
some
institutions.
High-quality industrial design and valuable cultural
heritage.
Excellent knowledge of foreign languages and
adaptation to the culture of other nations (the
diversity of cultural influences), with a wealth of
international connections.
Computer literacy.
A developed network structure of companies in the
supply and technology chains of global customers
(automotive industry, white goods industry).
-
-
-
-
-
-
-
-
-
-
-
Structural problems, which are reflected in dependence on
low complex technological industries and in the lag behind
the EU average in the productivity of all industries, while
material and energy productivity grows more slowly than
labour productivity.
Discouraging business environment (a discouraging tax
system, inflexible labour legislation, financial market
inefficiency, lengthy procedures for obtaining building
permits, incoherent supportive environment).
Poor exploitation of knowledge and knowledge-based
finished products and services, recognisable and marketable
in the global market.
High indebtedness of companies; equity crunch.
A low share of innovative enterprises and a low level of
innovative and entrepreneurial culture in a significant
proportion of the economy.
Relatively low investment in research and development, in
both the public and private sectors; even greater lag in
non-technological innovation.
Investment in research, development and innovation in
recent years has not been upgraded nor taken advantage of
(lack of the implementation of RISS).
Systemic orientation of the public research sector to
achieving scientific results, without emphasising the
tracking of the contribution of applied research and
development to the competitiveness of Slovenia.
Lack of openness and competitiveness in the education and
research system, making it impossible for the system to
collaborate with industry and foreign research institutions.
Poor integration of technological and business
development.
Poor adaptability of vocational education and training to
the needs of the labour market and the economy;
relatively low efficiency of tertiary education.
Inadequate offer of financial resources and corporate
financing.
Inconsistency of support measures and the supportive
environment of the country.
High mortality and low growth of companies.
Intolerance of the environment to risks and failures.
Low level of networking in the home environment and the
formation of strategic alliances with foreign partners.
Planned systemic measures for the ‘duration of the term of
one Government’. Lack of coordination between policies,
development documents and actions by public authorities,
also at local, regional and national levels. Implementation
deficit with most state policies, including lack of inspection.
Lack of managerial skills and experience abroad; relatively
poor understanding of the concept of corporate social
responsibility.
A predominant focus on traditional markets and overdependence on a small number of markets.
An insufficient number of export-oriented enterprises.
A decrease in the global export market share.
Dependence on too few final products for export.
An inadequate (too low) structure of final products and
systems, and lack of engineering knowledge.
Low material productivity.
19
-
-
-
-
-
Excessive and inadequate regulation of professions and
activities, and the related limited access to the labour
market.
The improvement of energy efficiency of buildings (public
and private) has a lot of positive effects, but is too slow and
unsystematic.
The support of the development and implementation of
low-carbon technologies does not follow the potential of
the economy, and thus development largely follows the
requirements of the international market.
Underdeveloped public transport and a large proportion of
road traffic, associated with high costs of mobility,
dependence on fossil fuels, and negative effects on health
and the environment.
Lack of consideration of the entire life cycle of products and
lag in waste management.
Loss of agricultural land, small and fragmented land and
forest properties. Lack of food production and resultant
dependence on imports. Lag in the introduction of
ecological agriculture. The added value of products and
services in the forest/wood value chain is too low.
OPPORTUNITIES
THREATS
-
-
-
-
-
-
-
-
-
-
Focusing on products with higher value added.
Together with the involvement of the public, local
communities, businesses and the public sector, a
transition to a materially effective low-carbon
society can ensure a development breakthrough
and a new investment cycle, based on promoting
innovation in low-carbon technologies and services,
making all sectors ‘greener’ and spreading good
practices.
Regarding consensus on objectives, Slovenia's small
size enables greater responsiveness and the faster
achievement of objectives.
Sustainable production and consumption, which
results in higher material and energy efficiency.
Maximum utilisation of waste, either as raw
material or as energy, and the reduction of waste.
The public sector encourages the transition to a
materially efficient low-carbon society, through
green public procurement and as an example of
environmental efficiency.
Savings and the reduction of import dependence
due to the efficient use of energy (by exploiting RES)
and space.
The development of ecosystem services and related
industries, based on the abundant natural resources
of Slovenia.
Connecting and networking companies with each
other and with educational institutions and
international organisations.
Involvement
in
international
development
networks, with greater attention to developing
areas of the world (BRIC, Asia, unlisted etc.).
Involvement in EU development programmes and
projects.
Optimisation and integration of the support
environment (PRO, agencies, chambers of
commerce, special companies).
Optimum utilisation of the existing infrastructure
-
-
-
-
-
-
Insufficient technological level of industry and risk of
permanent under-development of organisation and
technology.
Imbalance in public finances.
Unwillingness to carry out structural reforms and
continuation of development models which are frequent in
the economy and based on the growing use of space, raw
materials and energy, and treating the environment as a
factor limiting growth.
Lack of financial resources to achieve objectives.
Foreign investors leave Slovenia due to anti-competitive
business environment; new foreign investors show lack of
interest due to the small Slovenian market.
Discouraging tax environment for both domestic and foreign
companies.
Administrative barriers to investment and business.
Potential intensive brain drain and ageing population.
Uncertainty about the form and scope of the global effects
of climate change. Climate in Slovenia is warming faster
than the world average. This may lead to serious
consequences of climate change even faster than
elsewhere.
Due to Slovenia's complete dependence on imports of oil
and gas, disruptions in the fossil fuel supply may occur. An
additional problem is the uncertainty about energy prices
on world markets, related to uncertainty about the prices of
emission credits and environmental duties.
Due to the low level of food self-sufficiency, Slovenia is
extremely exposed to fluctuations in global food markets
and disruptions in agricultural production in other parts of
the world.
Loss and lag behind trends in occupational development in
creative industries and other promising sectors.
Under-investment in education, training and development
of employees by companies.
Lack of cooperation between educational and research
institutions and the economy.
Instability in the main export markets.
20
(e.g. business zones) and environmentally less - Cost pressures on the economy due to the small market,
sensitive areas (e.g. degraded land).
including the growth of prices of strategic raw materials.
- The inflow of FDI, internationalisation and new - The decline in domestic demand and demand in traditional
market exploitation.
markets.
- Coordinated cooperation of different sectors to - Barriers to entering new markets.
support the economy.
- The deepening of the economic crisis in the EURO zone.
- Adaptation of education to the needs of the - Non-cooperation of departments in the implementation of
economy by considering the long-term development
policies. Maintaining the existing weaknesses in the
directives and projections.
coordination and implementation of policies.
- Training and education in companies and lifelong - Lack of awareness and knowledge (by decision makers,
career orientation of individuals.
policy makers and implementers, participants, the general
- Reduction of administrative hurdles (minus 25%,
public) about the opportunities for the sustainable
assessment of the impact of legislation) and
development of Slovenia.
simplification of regulations.
- More investment in research, development and
innovation, and greater efficiency of these
investments.
- The development of programmes to strengthen the
development sectors of the economy and to raise
the creativity, innovation and entrepreneurship of
young people.
- The development of programmes to enhance the
transfer of knowledge from older to younger
generations.
- The introduction of tax reliefs for innovators
(individual and companies) and the implementation
of green tax reform.
- Financial and other government support for the
introduction of innovation.
- Exploitation of market opportunities (market niche)
and technological specialisation, for example in lowcarbon technologies.
- Innovation in public procurement, green
procurement.
- Recognition and support for businesses with rapid
growth potential in both domestic and foreign
markets.
- Promoting the improvement of business models and
introduction of new models, such as social
entrepreneurship.
- The introduction of the concept and measures of
social responsibility as key categories of
development.
Source: Summarised from the findings of various international competitiveness studies (WEF, IMD), findings of the OECD
and EU experts, from the Draft of the Strategy for the Transition of Slovenia to a Low Carbon Society by 2050, and findings
of MEDT, the Chamber of Commerce and Industry and other participants.
2.3.
Analysis of the implementation of measures in
entrepreneurship, competitiveness and R&D activities
the
field
of
 Evaluation of the Implementation of Policy on Entrepreneurship and Competitiveness in the
Period 2004-2009
The Evaluation of the Implementation of Policy on Entrepreneurship and Competitiveness in the
Period 2004-200917 was presented in 2012, together with proposals for new measures and changes
17
http://www.mgrt.gov.si/fileadmin/mgrt.gov.si/pageuploads/DPK/CRPi_2010/Koncno_porocilo_CRP_konkurencnost.pdf
21
to the indicators. The analysis showed that the recipients of incentives in all areas were carefully
selected and their business activities were above average, both before and after they received the
incentives. However, the analysis also showed that the results were limited and mostly short-term.
The greatest increases were seen in employment, wages and sales, while modest results were
obtained mainly in the area of increased productivity and export capacity, as a result of the
objectives set in the preparation of operational programmes and individual measures.
Recommendations resulting from the analysis are as follows:
• A more systematic approach and harmonisation of the objectives and measures from
different policies with a direct and indirect impact on industrial policy.
• Promotion of non-technological aspects of competitiveness (encouraging knowledge,
competencies and qualifications of human resources, networking, all kinds of support
services).
• Support for initiatives that have already been initiated (bottom-up).
• Promotion of clustering: not only horizontally by branches, but also in terms of strengthening
production-supplier and sales-marketing added value chains (vertical integration).
• From non-refundable incentives to developed systems of tax relief.
• Elimination of administrative barriers in business (implementation of the Services Directive,
deregulation of activities and professions, implementing action plans of the Small Business
Act).
• Active land policy: establishing funds for land suitable for construction for the needs of the
economy by municipalities, and managing data regarding this land in publicly accessible
databases.
• Nurturing the basic elements of competitiveness (infrastructure, institutions, macroeconomic factors, stability, rule of law, education system, health care, judicial system).
• Regarding criteria and evaluation in individual public invitations to tender, it is necessary to
supplement the focus on jobs with long-term growth, improved efficiency, the capacity for
international growth, and increased efficiency in processes (process and institutional
efficiency are integral parts of the newer rankings), changes in behaviour, values and
intangible assets.
• Addressing questions of how to encourage the growth of successful companies and how to
keep such companies in Slovenia.
• Strengthening the role of the state in creating the basic conditions for development
(including through innovative public purchases, public-private partnerships, etc.).
• Promoting self-sufficiency in strategic sectors (due to increased protectionism and pressure
on the preservation and creation of jobs), supporting international growth and access to
finance.
• The continuous improvement of the quality of the business environment and infrastructure,
and international links with emerging markets.
A SWOT analysis of individual actions arising from the Programme for Promoting Entrepreneurship
and Competitiveness 2007-2013 was also performed and is included in Annex 4.
 Evaluation of measures to promote R&D activities
A mid-term report on the evaluation of measures to encourage R&D activities in the economy and
institutions of knowledge was presented in July 2012. Based on the analysis of the implementation of
instruments, the authors of the study concluded that the proposed instruments proved to be very
interesting for the beneficiaries, and that they proved to be a very good tool for increasing
inventiveness and innovativeness and raising the competitiveness of the Slovenian economy. Potential
for the long-term sustainability of the projects funded is high with all instruments, but not
guaranteed. In terms of content, the instruments are embedded in content and support systems for
22
the development of R&D and innovation. The importance of areas of innovation and innovativeness
and R&D is even more emphasised during the economic crisis.
In the areas where operations were carried out, radical progress with long-term significance has
been achieved for connections between science, research, and technology regarding innovation, and
in particular, strong tangible links between academia and industry have begun to form. Users
generally rate all evaluated instruments as relatively adequate, but warn that there is plenty of room
for improvement and that there will be even more with the experience gained and the unfavourable
external changes that have occurred in the meantime.
In most cases, the effects and results were greater than planned. More than 85% of respondents
believe that the public funds were important for achieving the objectives. 50% of respondents
believe that the public funds were predominant and sufficient for the end users to achieve their
plans. An important effect of public funds is also reflected in the fact that, in 60% of the cases,
operations triggered other investments which were related to the projects funded. Additionally, they
also triggered increased cooperation with industrial partners, which will further fund research and
development projects. Linking innovation policy instruments at the level of their strategic intentions
is also a challenge for the future.
23
3. SLOVENIAN INDUSTRIAL
ECONOMIC DEVELOPMENT
POLICY
GUIDELINES
FOR
The harsh financial climate, increasing indebtedness of the state and fall in ratings are some of the
consequences of the financial and economic crisis in Slovenia, which has lasted since the end of 2008
and is still showing no significant signs of diminishing in 2012. Due to growing indebtedness, it is
necessary for the state to be cost-effective with public funds at all levels and to increase efficiency in
the allocation of funds for various purposes. There are no financial resources for industrial policy in a
broad context without development priorities. An essential foundation for the meaningful
preparation of the policy is the consolidation of the national budget, together with greater economic
activity, taking into account changes in the global agenda and EU strategic guidelines (such as
movement towards understanding the development opportunities arising from the search for green
solutions).
Since resources from the national budget and potential funding from foreign private investment are
limited, a major part of the development will be financed from EU funds. Due to the higher
multiplying and revolving effects, more funds will be spent as refundable sources of financing, which
means that financial engineering will increase. Non-refundable funding sources will, however,
require greater focus and selectivity and the international competitiveness of the selected
development projects. Budget resources obtained on the basis of environmental and energy duties
need to be guided towards development, investment and innovation in the field of environmental
and energy efficiency. The effective integration and optimum operation of agencies and funds is
essential.
In addition to limited financial resources, it is necessary to consider the scarcity of natural resources
and changes in circumstances at both national and other levels. There is increasing solid scientific
evidence that our activities have caused pressures on the environment of such magnitude that we
have already approached the environmental limits of our planet or even exceeded them (climate
change, biodiversity, input of nitrogen and some other nutrients in the environment). Slovenia is also
characterised by poor management of its natural resources. We also face unfavourable demographic
trends (ageing population, brain drain, limited human resources).
Based on domestic and international research and analyses, Slovenian strategic documents and
consultation with interested parties, SIP has set starting points and guidelines for the following
issues:
1. Improving the business environment
2. Strengthening entrepreneurship and innovation - focusing support on new, innovative and
growing companies
3. Response to social challenges - focusing support on promising technological and industrial
areas
4. Activities for the long-term development of industry
Integrity and the greater focus of measures will contribute to:
- higher quality, differentiation and specialisation of products and services, leading to
increased competitiveness and added value per employee,
- preserving and further developing production cores, which will also lead to increased
employment,
24
-
growth and development of industry, which will provide solutions and final products with
higher added value in a rapidly changing global economic environment,
improvement of efficiency (energy, material, environmental and social) and the reduction of
the use of space, materials and energy,
more effective supportive environment for companies,
an increase in both domestic and foreign investment,
better integration of the research and economic spheres,
better integration of stakeholders in the entire value chain,
access to new markets and international development partnerships.
The guidelines apply to all portfolios and policies related to the economy, and form a competitive
business environment. The measures of the Ministry of Economic Development and Technology will
be further elaborated in the action programmes in the fields of entrepreneurship, competitiveness
and technology in the period 2014-2020, and programmes for internationalisation and foreign direct
investment.
3.1.
IMPROVING THE BUSINESS ENVIRONMENT
A constant effort to improve the business environment is essential for the intensification of
investment in technological and economic development and one of the key objectives of industrial
policy. Improving the business environment relates mainly to:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Functioning of the rule of law
Friendlier administrative environment
A more flexible labour market and education adapted to the economy
An encouraging tax environment
Environmental, energy and spatial policy
Comprehensive business innovation support environment
Improving access to affordable sources of finance
Creating an environment which encourages creativity, entrepreneurship and innovation
(CEI)
(9) Effective management of companies, especially state-owned enterprises
(10)Encouraging corporate social responsibility.
Improving the business environment requires integration with other policies (tax, social, agricultural,
tourism, traffic, environment, energy, educational, cultural) and harmonisation with the measures of
environment protection, energy efficiency, measures related to demographic changes, health and
safety, and measures to enhance knowledge and skills as the basis for the development impetus and
investment cycle.
3.1.1. Functioning of the rule of law
It is necessary to accelerate judicial and executive procedures to the level of comparable EU
countries. It is necessary to provide conditions for the work and independence of law enforcement
institutions - to accelerate the prosecution of economic crime and corruption. It is urgent for the
state and public institutions to supervise and encourage compliance with legislation and to ensure
that payments made by state and municipalities for public procurements meet the legal deadlines.
25
GUIDELINES:
(1) Reorganisation and specialisation of legal institutions for accelerated and effective operation and
execution, and efficient judicial and insolvency procedures.
3.1.2. Friendlier administrative environment
A friendly administrative environment will enable the easier establishment and faster growth and
development of businesses. To establish such an administrative environment, it is necessary to
continue with 1) efforts for better legislation by implementing a full assessment of the impacts of
regulations on the economy (‘SME test’), the environment and society, 2) elimination of
administrative burdens and reduction of administrative barriers, and 3) simplification of legislation
and greater transparency.
According to their own sources, micro and small enterprises are particularly burdened with above
average administrative burdens and are more sensitive to changes in the business environment. In
this context, it is of the utmost importance to carry out the Action Plan for the Implementation of the
Small Business Act, which emphasises the principle of ‘Think Small First’ in the adoption of legislation
and policies. Any proposal for a new or revised regulation must have a prepared evaluation of the
effects on the economy and environment, and particularly on SMEs (the so-called ‘SME test’), as well
as compliance with EU directives (no exceeding).
Effective, transparent and cost-effective public procurement is extremely important for all, and
especially for micro, small and medium enterprises. This area deals with effective management,
supervision of public procurement (green), the defragmentation of procurement and improper
selection of bidders only according to the lowest price. Invitations to tender and public procurement
procedures and obligations need to be simplified and adapted to small and micro enterprises
(simplicity, transparency, e-statements of references), and fair payment deadlines also need to be
established. It is necessary to provide a legal basis for an economical completion of investments and
services from procurement in cases of bankruptcies of the main contractors, and related compliance
with the law in order to solve problems regarding payment to contractors and subcontractors. It is
also important to introduce instruments of innovative procurement - the first references for
appearance in international markets are gained through demonstration procurement and
procurement in a pilot scheme.
GUIDELINES:
(2) Consistent implementation of the adopted Resolution on Legislative Regulation (adoption of regulations
according to the guidelines for Better Legislation) and the implementation of assessments of legislation
impacts on the economy in all government departments - ‘SME test’.
(3) Consistent execution of the Action Plan for the Implementation of the Small Business Act.
(4) Systematic implementation of the Government Programme to reduce administrative barriers by 25%.
This involves making existing legislation simpler and transparent (eliminating duplication, consistent
interpretation etc.).
(5) Establishing a Point of single contact (PSC) through which businesses can obtain all relevant information,
and electronically complete the necessary formalities and procedures.
26
(6) Efficient, transparent and cost-effective public procurement. The state acts as a cost-effective and
development-oriented (green) contracting authority which ensures professionalism and ethics in
conducting business at all stages of procurement and the execution of projects. In this context, it is also
important to promote green and innovative procurement for the integration of experts in the field and
science in joint pilot and demonstration projects. Introducing quality criteria and expanding the
environmental criteria in public procurement procedures.
3.1.3. A more flexible labour market and education adapted to the economy
Establishing greater flexibility in the labour market is very important for the economy to be able to
respond quickly and effectively to social challenges. It is necessary to completely modernise the
entire labour policy and legislation in terms of increasing flexibility in employing and dismissing staff
and increasing flexibility in determining wages in relation to productivity. And it is especially
necessary to modernise the policy in terms of creating skills to increase people's willingness and
adaptability to change and to meet new challenges, mobility, self-employment and other forms of
employment (e.g. in the context of social entrepreneurship), while at the same time providing an
adequate safety net. In this context, it is important to promote awareness of development
opportunities for (self-) employment (e.g. Slovenia's environmental capital and cultural heritage), as
a response to social challenges.
Employee mobility is further complicated by the high degree of regulation of professions and
activities. While the EU has approximately 100 regulated professions and activities on average,
Slovenia has over 350. It is necessary to distinguish between the regulation of professions and
regulation of activities, since these are not the same. It is also necessary to adopt laws and by-laws to
de-regulate activities and professions and to adopt a new framework for professions which in the
public interest should remain regulated. This will enable greater mobility of employees from
overstaffed companies to companies which possibly need additional labour.
It is also crucial to adapt education and training systems to ensure their own knowledge base is in
accordance with the needs of the Slovenian economy. It is necessary to update curricula with new
technological knowledge and insights on the connection of the economy, environment and society;
include the objectives and content of education for sustainable development in all subjects; ensure
the acquisition of adequate practical knowledge and experience also with new subjects, and
strengthen skills and teamwork among young people and employees. It is necessary to encourage
professional and vocational education for the needs of the economy, as well as a system of
scholarships for shortage occupations, such as professions in science, technology and other
professions and skilled trades. It is also necessary to increase the quality and shorten the length of
studies at professional and university level. Lifelong learning of employees throughout their working
lives is also important to acquire new knowledge for new working conditions and more frequent job
change, as required by modern industry. This will increase the employability of young people, mostly
highly educated workers, maintain the competitiveness and employability of older people in the
labour market and stem the brain drain.
GUIDELINES:
(7) Renovation and modernisation of labour policy and legislation to achieve greater mobility of the
workforce and safety of employment.
(8) Realisation of activities to simplify the conditions for practising professions and trades - better regulation
27
of professions, trades and activities.
(9) Adaptation of education and training systems to the needs of the economy, in order to ensure our own
knowledge base also in accordance with the economy, taking into account development guidelines and
projections, such as the expected increase in demand for green jobs. In this context, the promotion of
professional and vocational education; updating school programmes aimed at obtaining practical
knowledge and experience; including education for sustainable development; strengthening individuals'
qualifications and competencies, for example for teamwork and the use of systemic, critical and creative
thinking; training for shortage occupations; encouraging lifelong learning; promoting socially responsible
entrepreneurship and the involvement of young people in entrepreneurial activities; the introduction of
mechanisms for the transfer of knowledge between generations and transfer of foreign expertise to
Slovenian companies, etc.
(10) Promoting the employment of older and young workers - programmes for the employment of older
workers and incentives to employ first job seekers.
3.1.4. Encouraging tax environment
Tax policy is an important indicator, showing the attractiveness of the business environment. An
encouraging tax environment can stimulate the economy as a whole and attract foreign direct
investment. Tax policy should also support other measures to ensure an attractive business
environment.
Tax interventions should focus on greater transparency, predictability and stability. In this area, it is
also necessary to implement the process of reducing administrative barriers in terms of simplifying
tax procedures and forms and giving clear and uniform interpretations. It is even more important
that tax rates promote growth and development of companies. With tax policy, we must strengthen
productivity factors, such as human capital, innovation and entrepreneurship. Tax relief for research
and development is particularly important from this perspective, since this provides a stimulus for
company investment in new technological solutions, innovative processes and services, which is the
driving force of progress for the individual company, as well as for the economy and society as a
whole.
GUIDELINES:
(11) Establishing an efficient and transparent tax environment with carefully considered amendments to tax
legislation (e.g. for the purposes of green tax reform).
(12) Promoting growth and developing companies with tax relief for investments and R&D. Examining the
impact and effect of these measures on the economy.
(13) Examining the introduction of other types of tax relief and incentives to support innovation.
(14) The examination of taxation measures which could contribute to reducing illegal work and the grey
economy.
28
3.1.5. Environmental, energy and spatial policy
Environment, energy and spatial policy is closely linked to industrial policy; therefore, they should be
well coordinated. Legislation in these areas should provide legal certainty, which is necessary for
long-term investment planning. In this way, legislation can act as a lever for innovation and industrial
development, rather than an obstacle. It is also important to use environmental duties to encourage
companies and the entire population to greater energy efficiency and the use of renewable energy
sources, to facilitate the transition to a low-carbon society and create new green jobs.
GUIDELINES:
(15) Smart and development-oriented environmental legislation in accordance with EU Directives (focusing
on a materially-efficient and low-carbon economy, taking into account short-term costs and burdens to
industry). In this context, eliminating unnecessary administrative burdens arising from approximately 500
regulations relating to the environment.
(16) Ensuring a long-term energy strategy, with commitments to provide the economy with a competitive and
sustainable energy supply and achieve optimum energy import dependence. In this context, the adoption
and implementation of the National Energy Concept.
(17) The optimum organisation of companies engaged in energy activities for their development, for a
reliable, sustainable, cost-competitive and environmentally acceptable supply of energy to the Slovenian
economy, and for transparent trade in electricity and natural gas. Attention will also be devoted to
distributed generation, by taking into account the production prices of such energy and environmental
savings.
(18) Incentives for energy efficiency (EE) and renewable energy sources (RES). In this context, also
establishing a framework to implement the programme to reduce energy consumption in accordance
with the adopted commitments of the Republic of Slovenia in the energy-climate package by 2020
(implementation of obligations in accordance with the Energy Efficiency Directive 2012/27/EU and the
Action Plan of EE).
(19) Special measures for energy intensive industries which are important components of the value chain, in order to
prevent the migration of jobs and capital, which can be caused by reducing carbon emissions (‘carbon leakage’).
Energy-intensive industries that are exposed to international competition demand competitive energy
markets (access to energy and raw materials at competitive prices and under competitive conditions in
the world market, etc.).
(20) The establishment of e-business in the field of construction in order to optimise processes and eliminate
administrative barriers. The most important information on the spatial situation needs to be collected in
one place, standardised and easily accessible in the framework of spatial information system.
(21) Shortening procedures for issuing environmental permits. Includes the reorganisation of institutions and
the personnel responsibility for the effective management and implementation of administrative
procedures. At the same time, it is necessary to redefine the role and responsibility of civil society
regarding the implementation of administrative procedures (environmental permits, spatial positioning of
objects, etc.).
(22) Preparation of projections (priority programme) of major demonstration/pilot projects of ‘smart’
objects/systems (intelligent buildings, traffic, health-care, communities, cities), with the participation of
stakeholders (regions, municipalities, industry, financial structures), based on Slovenia's Development
Strategy, National Development Programme (NDP) and Operational Programmes for the new financial
perspective of the EU for 2014-2020.
(23) Determining priorities for preparing, implementing and planning public investment in energy, road and
29
rail infrastructure, and accelerating the preparation of national spatial plans and implementing ongoing,
unfinished and planned projects. To implement the planned measures effectively, it is necessary to
connect state bodies and engage engineering staff for the timely design and technological qualification of
Slovenian industry for the long-term infrastructure investment programmes (2nd track, 3rd development
axis, hydroelectric power plant on the middle Sava, the South Stream pipeline etc.).
(24) Establishing financial mechanisms and a business environment for the implementation of current and
new construction business at home and abroad (insurance, warranties, consortia). Integration of
Slovenian industry, engineering and consulting services in investment planning and object construction.
3.1.6. Comprehensive supporting environment for business innovation
It is necessary to establish a comprehensive, integrated, efficient and transparent supportive
environment for technological and business development, for entrepreneurship and innovation, and
to upgrade comprehensive support for the establishment of companies, their development and
growth. An effective supportive environment should act as a partner of the state, in the interests of
companies and the public, by connecting, training, networking, and promotion both at home and
abroad.
Slovenia has a wide business innovation infrastructure, with a large number of fragmented
implementing and supporting institutions. Improving the coordination of institutions, the continuity
of programmes and measures, recognition and long-term operation of the network of supporting
institutions will all increase system performance and its availability for companies.
The business innovation infrastructure should provide a platform for cooperation between
companies and their suppliers, customers, competitors, universities, scientific research organisations
and other institutions. This network helps businesses overcome obstacles related to sources of
financing, human capital (e.g. additional managerial knowledge), social capital and other sources
associated with the specifics of a particular company (e.g. limited technological capacity) or market.
The quality of the supportive environment is essential for sharing knowledge, which generates
growth. It is therefore necessary to build on a business innovation infrastructure that will enable,
encourage and disseminate a system of open innovation, where companies and research institutions
collaborate, connect, share knowledge, experience and inventions, license the solutions of others,
and constantly promote the establishment of new businesses.
GUIDELINES:
(25) Reorganisation and responsible autonomy of implementing institutions , in order to improve their
operations and support services, to increase efficiency and eliminate duplication in the implementation of
measures in the areas of research, development, innovation and entrepreneurship. Maintaining their
mission and upgrading their operations to support businesses in effective integration into the EU
financial perspective for 2014-2020 and the withdrawal of EU funds.
(26) Further developing and upgrading supporting entities of the entrepreneurial and innovative
environment (VEM entry points (All in One Place), university and business incubators, technology parks,
technology centres, technology transfer offices, etc.), mainly in the form of the development,
complementariness and upgrade of services provided by these entities. In this context, also improving
access to the capacities of the existing R&D infrastructure at home and abroad, and promoting technology
transfer to accelerate the commercialisation of research and development results.
30
(27) Transferring activities to individual implementing entities from the private sector (chambers of
commerce, associations, clusters, etc.), according to the principle of public-private partnership.
3.1.7. Improving access to finance
All studies and surveys indicate that access to finance is one of the most difficult obstacles for all
companies, especially for SMEs. This obstacle is even harder to surmount in times of recession and
credit crunch, when the price of money is rising and the conditions for securing loans are tightening.
Therefore, it is necessary to establish measures to promote company financing by borrowing as well
as from equity funding sources.
GUIDELINES:
(28) Supporting growth and development of companies and expansion to foreign markets through debt
financing (financial engineering instruments: interest rate subsidies, microloans, micro guarantees, loans
and mezzanine loans, guarantees etc.). In this context, also the coordinated functioning of financial
institutions (mainly the Slovene Enterprise Fund and SID Bank).
(29) Further development of equity funding sources (strengthening and efficient operation of seed and
venture capital funds), and the development of other modern forms of financing, including public-private
partnerships.
(30) Promoting entrepreneurship for young people, women, social entrepreneurs and micro-entrepreneurs.
(31) Supporting the growth and development of companies - for example, with vouchers for quick access to
funding for a particular purpose.
3.1.8. Environment promoting creativity, entrepreneurship and innovation (CEI)
To create a positive innovation microclimate, Slovenia must continue to strengthen the culture of
creativity, entrepreneurship and innovation (CEI). The culture of creative, enterprising and innovative
thinking needs to be introduced in all parts of the education system (cross-curricular), from
kindergarten to university, as well as in companies. The key target group are the young, as the latest
analyses and research among young people have revealed some alarming problems regarding the
perception of business ideas and entrepreneurship as alternative career opportunities, as well as
regarding the lack of competences, such as creativity, entrepreneurship and innovation.
In future, the comprehensive promotion of entrepreneurship, the entrepreneurial culture and the
business environment will need much more emphasis. It is important that promotional activities are
managed in a coordinated way, so that all implementing institutions and the entire supporting
environment can work uniformly.
GUIDELINES:
(32) Comprehensive promotion of creativity, entrepreneurship and innovation (CEI) and entrepreneurial
culture as positive values (e.g. through public media, participation in events, business meetings and trade
31
fairs in the field of entrepreneurship and crafts, etc.); promotion of CEI also in companies and informing
on good practices.
(33) Including contents from the area of CEI at all levels of formal education (from kindergarten to university)
and training teachers and mentors to introduce pedagogical methods to promote CEI skills.
3.1.9. Effective management of companies, especially state-owned enterprises
Businesses owned by the state comprise an important share of the Slovenian economy. In the past,
many abuses of this property occurred, as well as the exploitation of political influence on the
economy and the functioning of links between politics and the economy, which was mainly reflected
in the low profitability of state property and privatisation processes in some companies. No one has
yet been held responsible for the negligent management and control of state-owned enterprises18.
According to international competitiveness research (IMD, WEF), Slovenia ranks extremely low
regarding the quality of supervisory boards and corporate management. It is therefore necessary to
increase the efficiency of the management and supervision of state-owned enterprises.
GUIDELINES:
(34) Effective, depoliticised control and corporate governance in accordance with the OECD Guidelines on the
Corporate Governance of State-owned Enterprises.
(35) Transparent withdrawal of the state from the economy by selling full or partial ownership stakes in
state-owned enterprises in which the Republic of Slovenia has no strategic interest, an important criterion
being the possibility of the long-term development of the company.
3.1.10.
Corporate social responsibility
To ensure long-term economic development consistent with the principles of sustainable
development, the integration of the concept of corporate social responsibility requires greater
emphasis. This is a concept that allows companies to coordinate their own interests with the
interests of their stakeholders. Social, environmental and economic corporate responsibility, a
balanced consideration of the interests of, and involving all, stakeholders in business operations
improve the organisations' reputation, reduce costs, influence competitiveness19, improve working
conditions, increase job satisfaction and positively affect business performance and society as a
whole. Corporate social responsibility is a key tool in the continuous restructuring of companies at all
stages of development, as highlighted in section 3.4.3.
Companies show social responsibility in the following ways:
 by including attitude to all stakeholders in their missions, strategies and activities,
 by being included in assessments based on national and international models and competing for
recognition (e.g. Horus),
18
Commitment for successful future: http://www.zdruzenje-manager.si/storage/8310/zaveza.pdf
19
Competitiveness Report 2008 Communication from the Commission on the European Competitiveness Report 2008. COM (2008) 774
final
32









through the adoption of appropriate codes of behaviour, including working conditions,
environmental orientation, transparency of information and issues related to the protection of
human rights,
with socially responsible investment, where companies consider not only financial gain but also
take into account social and environmental criteria, and ensuring business activities over the
long-term (which are not based on short-term and speculative effects),
with measures to promote lifelong learning and employee development, improve the flow of
information in businesses, including the transfer of knowledge between generations; improve
the balance between work, family and leisure; provide equal opportunities for promotion and
payment for work; enhance employability and job security; increase opportunities for the
employment of difficult-to-employ groups; update youth training programmes and programmes
for training the elderly; with measures to improve health and safety culture of employees,
with measures to promote organisational and financial employee participation,
with measures to promote environmental awareness and the rational use of natural resources in
companies,
through appropriate employment conditions and job opportunities for vulnerable groups - young
and old workers (there will be more of these due to prolonged working lives),
by introducing a ‘Family Friendly Company’ certificate,
by implementing the ISO 26000 social responsibility standard,
by knowing and complying with the OECD Guidelines for Multinational Enterprises.
GUIDELINES:
(36) The formation of priority areas and measures for the promotion of social responsibility in accordance
with the United Nations guidelines on human rights (‘UN Guiding Principles’).
(37) Supporting projects that promote the formation and exchange of good practices in the field of social
responsibility in companies. In this context, the promotion of mentor and investment participation of
socially responsible and social enterprises, and the support of investments with a social impact.
(38) Promotion of corporate social responsibility by considering social responsibility in the allocation of
resources through public tenders.
3.2.
STRENGTHENING ENTREPRENEURSHIP AND INNOVATION - FOCUSING
SUPPORT ON NEW, INNOVATIVE AND GROWING COMPANIES
From 1997 to 2007, Slovenia had an average 4-percent increase in labour productivity per year,
which was the main source of growth of GDP per capita. To further increase productivity and added
value per employee, it is necessary to encourage innovation and innovative companies. Slovenia
currently attains only about 60% of the average added value per employee in the EU; this means that
Slovenia is 23 years behind the EU-15 in labour productivity20.
Strengthening entrepreneurship, innovation and thus technological development is crucial for
productivity growth and, consequently, economic growth and competitiveness. The role of the
government in this area is to improve the framework conditions for innovation and
entrepreneurship by means of horizontal measures, which especially refers to promoting closer
20
http://www.sicenter.si/Kje_je_Slovenija.pdf
33
contact between the public research and education sectors and the economy, promoting
development activities and technological investments in companies, non-technological innovation,
employing developers in companies, the mobility of highly skilled workers, and encouraging
employee innovation in companies (awards, better working conditions etc.).
In the context of RISS - Research and Innovation Strategies of Slovenia 2011-202021, Slovenia has
already identified the necessary organisation and the financial leverage for:
-
the acceleration of investment in R&D in accordance with national objectives (3% of GDP for
R&D) and increasing the utilisation of these investments (with an emphasis on the areas of
the green economy and sustainable development);
-
a successful public research sector, adapted to the demands of the time, which also refers to
a change in public research and education system for the equal treatment of scientific and
educational excellence and applicability;
-
transfer of knowledge from public research organisations (PROs) to the economy and social
environment, also by organising intellectual property rights, strengthening knowledge
transfer offices (TTO) and attracting PROs to resolve the challenges of social development
(for example: efficient use of natural resources and energy, and renewable sources of
energy);
-
objective-oriented and quality international cooperation and involvement in international
research infrastructure, which means the integration of science and economy into the
national and EU research infrastructure;
-
strengthening human resources and, in this context, promoting the mobility of R&D staff
between universities, public research organisations and the economy, and the promotion
(including part-time) of science and engineering studies;
-
development of entrepreneurial and innovation
infrastructure, as support for the innovation system;
-
strengthening innovation in the economy by promoting private investment in R&D and new
innovative companies to accelerate growth and strengthen the innovation capacity of
companies.
infrastructure
and
information
RISS implementation is therefore also important in terms of industrial policy. In addition, an
environment promoting creativity, entrepreneurship and innovation, and together with the
modernisation of education and training systems are of the utmost importance for strengthening
entrepreneurship and innovation. This is also highlighted in sections 3.1.7 and 3.1.3., respectively. It
is also crucial to encourage the integration of companies in innovation groups, such as clusters and
technological networks, in order to overcome various obstacles and for joint promotions and
appearances in international value chains. It is also important to introduce European and
international standards, which help encourage the successful introduction of innovative products on
the market, but the standards should not give rise to new burdens, particularly for SMEs.
Higher added value per employee and higher employment are also achieved by a more targeted
approach to promoting new, innovative and growing companies. From 2002 to 2010, according to
the results of the European Commission, small and medium-sized enterprises (SMEs) generated 85%
of net new jobs in the EU. Among the new companies, fewer than 10% generate 50-75% of all jobs22.
A particularly important feature of innovative and growing companies is their capacity for economic
21
22
http://www.uradni-list.si/1/objava.jsp?urlid=201143&stevilka=2045
ERAC report 2012
34
turnaround. These findings highlight the need for a more focused approach to release the potential
of these companies to generate employment. However, the companies will need to exploit the
opportunities of the EU internal market and, in particular, the new, fast-growing international
markets.
Fast-growing companies (FGC) are of special importance for the economy, since they continuously
employ new workers, have a positive impact on economic growth and encourage competition in the
market. The fastest growing dynamic companies, which David Birch23in 1979 called entrepreneurial
gazelles, have been a subject of study in Slovenia for twenty years, and in the last eight years, the
companies with high growth potential have also been investigated. Over the period 2006-2010, 4511
such companies in Slovenia (3.55% of all economic operators) contributed 97% to the total growth in
net sales revenue in the economy, created more new jobs (26,094 new jobs, a 46% increase
compared to 2006) than were lost in the entire economy, and almost the entire increment of added
value in the economy. These companies also increased added value per employee by 17%, but it
needs to be noted that the average added value per employee in 2010 in companies with growth
potential amounted to EUR 47,582, which is significantly above the average in the economy in 2010,
which was EUR 35,152 per employee (Statistical Office, 2012)24.
If FGCs in the following years record similar growth to 2006-2010, we can expect an optimistic
picture of the development of the Slovenian economy. However, for the realisation of growth, it is
necessary to consider and overcome obstacles that FGC have emphasised. Among the current
obstacles to growth, FGC highlighted unfavourable legislation, particularly tax laws, excessive costs,
lack of demand and inability to obtain adequate financing (most of these areas are covered in section
3.1. on improving the business environment).
Existing methods of the use of natural resources offer great potential for improvement. SMEs are an
important pillar of the Slovenian economy, but due to their activities they also have a significant
impact on the environment. The EUROBAROMETER survey in 2011 showed that in Slovenia 36% of
SMEs spent more than 50% of their costs on raw materials, while 35% of SMEs spent 30-49%.
Supporting the improvement of low material productivity, especially for SMEs, is therefore an
important measure to promote the competitiveness of the economy.
It is also necessary to emphasise the growing importance of social entrepreneurship. It is an
innovative approach and a new business model of entrepreneurship that contributes to adaptation
to demographic changes and to new, better and more permanent jobs (for example, through the
introduction of social innovation).
GUIDELINES:
(39) Coordinated implementation of SIP and RISS - Research and Innovation Strategy of Slovenia 2011-2020.
(40) Study and evaluation of taxation measures which lead to the easier and faster introduction of new
companies to the market.
(41) Encouraging the establishment of new innovative companies and companies with high growth
potential. In this context, promoting the integration of companies with systems of mentors and business
mentors.
23
Birch, D.(1987): Job Creation in America: How our smallest companies put the most people to work, Free Press Macmillan, New York.
Pšeničny, V., A. Maček and D. Vidovič (2012): Less than 5% of Potential High Growth Enterprises Kept the National Economy Growth
During the Crisis, 4th Conference of DOBA Faculty.
24
35
(42) Promoting the integration of companies, especially SMEs, with academic institutions. In this context,
promoting existing, and establishing new, innovative groups (clusters, technological networks, technology
and development centres, etc.), aimed at networking between companies and research, consultancy and
international organisations and organisations of higher education, in order to share knowledge and
experience, transfer technologies, introduce new business models, create new business opportunities and
establish new development links.
(43) Promoting research and development in companies by recruiting and training researchers and
developers, promoting the mobility of highly qualified staff, by creating and disseminating
interdisciplinary development groups in companies and promoting employee innovation.
(44) Promoting development activities and technological investments in companies primarily through nonrefundable sources of financing.
(45) Supporting non-technological innovation and longer-lasting elements to achieve values (intangible
assets: intellectual property rights, process and organisational innovation, new business models for the
introduction of high-tech solutions to the market, to increase the material efficiency of enterprises and
for social entrepreneurship, and innovative methods for the internationalisation of companies on the
basis of the combined investment of knowledge, technologies and capital).
(46) Supporting the participation of Slovenian companies in international projects, as well as implementing
international development links. Offering information, advice and help (search for partners/consortia)
with integration into EU programmes, especially in Horizon 2020.
3.3.
RESPONSE TO SOCIAL CHALLENGES - ORIENTATION OF SUPPORT TO
PROMISING INDUSTRIAL AND TECHNOLOGY AREAS
For the recovery and growth of the Slovenian economy, for jobs and the preservation of the social
model, with a simultaneous reduction in pressures on the environment and the sustainable
exploitation of environmental capital, it is essential to invest in the development of industry and
industry-related service activities. It is important to invest in developing the modernisation of
existing industries, which will be implemented by means of horizontal measures described in section
3.2. But it is necessary to be aware that many of the existing industries and branches of industries
face major competitive pressures, relatively high productivity growth, the reduction of employment,
less emphasis on manufacturing and a greater emphasis on related services (R&D, design, logistics,
marketing and after-sales services), with the increasing internationalisation of production, where the
positions that the companies hold in international value chains are essential. In this context,
horizontal measures to achieve economic growth will not be enough.
It is necessary to find new sources of economic growth based on the so-called concept of smart
specialisation25, which takes into account existing competences and investments. These new sources
of growth result from answers to social challenges (climate and energy challenge, sustainable
mobility, health care, connected to the ageing of the population and self-sufficiency), with the
introduction of a new development paradigm, arising from the concepts of green growth (OECD), the
green economy (UNEP) and a material-efficient and low-carbon society (EC), which are based on
25
The aim of smart specialisation is to promote differentiation and processes of structural changes towards a knowledge society, so that,
according to their comparative advantages, countries, regions and companies position themselves appropriately in global value chains
(Source: Government Office for Development and European Affairs: ‘Time for change - time for a new industrial policy?’, November 2011).
The concept builds on high quality domestic competences which are the result of past investments, and on perceived international
opportunities, with the rational use of financial resources.
36
improving efficiency (energy, material, environmental and social) rather than on the use of space,
materials and energy. New sources of growth are also represented by activities to maintain and
encourage competition, as defined in section 3.4. (product differentiation - strengthening brands,
restructuring and internationalisation).
Extreme importance is assigned to the professional definition of internationally competitive strategic
areas where Slovenia has knowledge, competences and other business conditions necessary for the
economy and for institutions of knowledge, research and development. A decisive step in the
direction of smart specialisation is the introduction of development policy instruments,
Development Centres of the Slovenian Economy (DCSE), which connect related companies to
promote long-term development in key content areas. The technological priorities of Slovenia are
also defined through the Competence Centres (CC) and the Centres of Excellence (CoE), which
together form a connected area for promoting the applied results of R&D for existing and new
markets and market niches. In 2009-2011, a total of approximately EUR 300 million were approved in
financial resources for 32 centres (CoE, CC and DCSE) - more about this in Annex 4 - Tables 1, 2 and 3.
While CoEs mostly deal with research and the concentration of knowledge in priority technology
areas (with low-carbon technologies as a horizontal priority), CCs are one step closer to the economy,
and connect research organisations with the economy. In this way they strengthen a weak link in the
value-added chain. Both types of centre have already delivered concrete results for the economy - in
the form of innovation, patents, spin-off companies, prototypes, concrete investments in the
economy, new products and services, by employing researchers and in the form of new process and
organisational solutions. Besides developing competences, DCSEs also strengthen the links between
Slovenian development-oriented enterprises. This is crucial for the development of globally
competitive products, for preventing job losses, as well as for creating new and better jobs. Based on
the current incentives of DCSEs, the companies additionally invested in new R&D and manufacturing
capabilities and in strengthening exports to promising markets, and thus provided a basis for growth
and contributed to the development of the economy through multiplicative effects. The results of
the support are reflected in nationally developed and manufactured products, quality jobs and good
export prospects.
In the past, integration in clusters, technology centres, networks and technology platforms was also
greatly promoted. Clusters, technology centres and networks have become an important form of
connecting companies with academic institutions. The greatest results have been achieved in the
internationalisation and implementation of new technologies on the basis of integration in EU
development programmes and projects. Thus, these forms of integration have made an important
contribution to increasing the competitiveness of the companies involved, on the basis of increased
exports, the share of included knowledge and consequently higher added value.
Connecting stakeholders in priority technology and industrial areas is crucial for the further
development of the economy. However, it will be necessary to thoroughly examine the results
achieved by the current development instruments for the economy, which could lead to suspending
the subsidisation of certain areas that do not deliver the desired results, and including new areas that
present new opportunities for growth (such as sustainable tourism, food-processing).
The use of promising results of the development instruments implemented to initiate green growth
should also be encouraged in the following ways:


Through green public procurement, which means including sustainable development criteria
in procurements from public funds.
Through innovative public procurement in the context of demonstration projects, in which
the contracting authority requires technologies not yet established on the market and thus
assumes some of the risk associated with the introduction of new technologies. This will
37

accelerate technological development or the introduction of new technologies and services
in the priority areas of low-carbon technologies.
With a lead market concept: a lead market for a specific product or service is a geographical
area where the diffusion process of an internationally successful innovation (technological or
non-technological) first took off and is sustained and strengthened through a wide range of
services26. Through a lead market and with coordinated measures, Slovenia can enable its
economy to develop products and services faster and to test them in practice, which leads to
a better competitive position in world markets.
Existing economic sectors are a basis for securing new sources of growth. However, as noted by the
European Commission communication on industrial policy, the traditional view of formerly
homogeneous and nationally independent industrial sectors is no longer the proper basis for
development policy. Therefore, in the updated industrial policy27, the Commission sets six
development priorities which are not tied to the industrial sectors but to challenge-related
technologies. These development priorities are: 1. markets for advanced manufacturing technologies
for clean production, 2. markets for Key Enabling Technologies - KET, 3. markets for bio-products, 4.
sustainable industrial policy, construction and raw materials, 5. clean vehicles and vessels and 6.
smart networks.
SIP accordingly defines priority areas based on the challenges, opportunities, achieved
competencies, capabilities and natural resources, in order to promote the development of
technologies and their application in industrial sectors (see Table 3). The priority areas are defined
as cross-cutting areas of the following:


technological areas with growth potential, where we have competences in the value chain
which we have identified by creating competence centres, research centres and centres of
excellence, and
companies or groups of companies (clusters, technological networks, centres), which in
Slovenia are the centres of these technologies and which can successfully compete in the
international market, and thus respond to the challenges of the state's growth and
development and its global challenges.
Such a policy of integrating technologies with industrial areas where these technologies are applied
will increase the efficiency of investment in applied research, development and innovation. This
method will also allow for concrete measures to adapt to the changing state, or, more specifically, to
the evolution of competences and evolution of business ambitions and plans.
26
European Commission: A Lead Market Initiative For Europe: http://ec.europa.eu/enterprise/policies/innovation/policy/lead-marketinitiative/#h2-2
27 Communication of the European Commission: A Stronger European Industry for Growth and Economic Recovery, 10/10/2012 (http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF)
38
Table 3: Identified challenges and opportunities and focus on priority technological and industrial
areas (in greater detail below - sub-chapters 3.3.1.-3.3.4.)
Challenge
Environmental-energy
challenge and efficient
use of natural
resources, based on
sustainable production
and consumption
Sustainable mobility
Food, health and
ageing population
Potential KET - Key
Enabling Technologies
Priority technology areas*
Key industrial sectors*
Energetics / ‘Smart’ systems
Sustainable construction
Environmental technologies (technologies
for the efficient use of energy, including the
economical use of energy, renewable energy Manufacturing (especially woodprocessing, metal and electrical
technologies, technologies for increasing
industry and electronics)
material efficiency etc.)
Chemical and process industry
Technologies for sustainable mobility
Automotive industry
Pharmaceutical industry
Biotechnology and other challenge-related
Food-processing industry and
technologies
sustainable food production
Sustainable tourism
ICT
Nanotechnology, micro- and nanoElectrical industry and electronics
electronics, photonics, biotechnology,
New materials
advanced materials, advanced
Metal-processing industry,
manufacturing and process technologies
engineering and tool-making
NOTES:
* All areas of technology and industrial sectors are interconnected and there is no clear division between them.
These technologies also support other industrial sectors; therefore, only key sectors of applications are stated
within the framework of specific technologies. Industrial sectors do not relate to the definitions according to
the SKD, but are implicit in a broader view.
Source: Ministry of Economic Development and Technology
3.3.1. The environmental and energy challenge and the rational use of natural
resources
Priority areas that respond to the challenge:
 Technology areas:
Environmental or eco-technologies can be classified into the following groups:
- technologies for resource efficiency, reduction of waste and its hazard potential,
recycling (e.g. equipment which enables the processing, collection, sorting and
recycling of waste),
- technologies of smart electrical energy networks (e.g. virtual power plants based on
consumption regulation, new concepts of smart grid management and management
of household consumption with SmartHome solutions),
- technology for the efficient use of energy (EE), raw materials and other resources
(e.g. insulation of buildings, technologies for the efficient use of energy and water),
- technologies and equipment for smart grids (electricity meters etc.),
- technologies for the development of energy efficient machinery and equipment (e.g.
electric motors, fans, power systems, power inverters, lighting, machines with low
power consumption and high efficiency of electric power conversion),
- technologies for the production of energy from renewable energy sources (RES) (e.g.
photovoltaic cells, solar panels, fuel cells, small hydroelectric power plants, pumpedstorage hydroelectric power stations, wind power plants, equipment for the
exploitation of energy from biomass, bioplastics) and energy storage (e.g. batteries,
hydrogen),
39
technologies for the systemic management of energy from renewable sources
(diffused sources) and integration of these sources into the energy system (smart
grids), for power supply systems with power management by the consumer,
- technologies to reduce and prevent pollution and climate change (e.g. water
treatment devices, filters, equipment for waste water treatment, pumps),
- technologies for energy efficient building solutions for new construction and
renovation of buildings,
- technologies for the production of second generation biofuels from waste and wood,
- technologies for the production of organic food.
Key industry sectors: energy, sustainable construction, manufacturing (especially the woodprocessing industry, metal, electrical industry and electronics, food-processing industry),
chemical and process industry.
-

It is becoming clear that for further economic development in the 21st century there are two crucial
issues: access to key natural resources and the reduction of the environmental burden, as some costs
of environmental problems exceed the profits made by industries in certain projects. Key drivers of
green economic development in this century will be the following: sustainable and efficient
management of sources (renewable and non-renewable) and energy substances, the use of
renewable energy sources, the development and application of new concepts (e.g. industrial
symbiosis, closing material loops), new tools (environmentally friendly design), the development of
new business models, technological and non-technological innovation for the introduction of hightech solutions to international markets, and innovation in relation to creative industries.
From 2007 to 2010, the global environmental technologies market grew by an average 11.8% per
year, reaching EUR 1,930 billion in 201028. Rapid market growth was not stopped even by the global
financial and economic crisis. The potential for growth represented by the environmental
technologies offers plenty of opportunity for growth in the Slovenian economy. It is therefore
essential to encourage businesses and the public sector to invest in this direction. Even in some areas
where Slovenian companies are only suppliers of raw materials or semi-finished products to foreign
companies, the measures can provide incentives for entrepreneurs to invest in eco-innovation and
environmentally-friendly end products, where added value is higher. This is essential for Slovenia
because we have a problem due to low material productivity (the ratio between GDP and use of
resources) and the high energy intensity of the economy (road traffic also contributes considerably to
the negative picture).
Slovenian companies are already active in the efficient use of resources and their response to green
markets29:
 Efficient use of resources: 86% of companies (below the EU average) have taken at least one
measure to increase the efficiency of resource use, in 37% of cases this led to a reduction in
production costs
 Green Markets: 36% of companies (above the EU average) offer green products and/or
services; 9% are planning to develop them in the next two years; 54% (below the EU average)
are not planning to develop them in the next two years; 67% offer products/services in the
domestic market;
 To develop green products/services: most companies want financial incentives from the state
to develop them (45%) and assistance in finding potential markets (22%).
An analysis carried out in 2011 shows that Slovenia ranks above the EU average in the field of ecoinnovation. However, we are well above average on only one indicator (socio-economic results),
while on others our results are far below average. This means that we have an above-average
28
29
http://www.research-in-germany.de/dachportal/en/downloads/download-files/110822/green-tech-made-in-germany-3-0.pdf
http://ec.europa.eu/public_opinion/flash/fl_342_fact_si_si.pdf
40
number of employees engaged in eco-industries, but their activities and investments do not produce
results in terms of successful eco-innovations (e.g. new patents for technologies and products). This
discrepancy is mainly due to bad connections between academic research and industry, and the poor
transfer of developed technological solutions and products to the market.
An important step in achieving environmental objectives was taken with the introduction of the
Regulation on Green Public Procurement, which was intended to improve the environmental and
financial performance of the public sector and encourage companies to offer more environmentally
friendly materials and services. The systematic implementation of the Regulation for all committed to
green public procurement is crucial; therefore, it is necessary to provide a means and a mechanism
for their continuous education and training.
In the context of the environmental and energy challenge, it is of the utmost importance to
implement urban renewal, which includes the re-use of degraded land and renovation of the existing
housing fund as potential for sustainable construction, green jobs, the reduction of costs by reducing
the share of energy consumption in urban areas (preventing energy poverty) and reduction of the
carbon footprint.
3.3.2. The challenge of sustainable mobility
Priority areas that respond to the challenge:
 Technological areas:
Technologies for the efficient use of resources and environmentally and user-safe and
friendly mobility can be classified as:
- technologies to increase efficiency and reduce emissions (effective drives, auxiliary
systems for quiet and clean vehicles, new materials to reduce vehicle weight),
- technologies for alternative fuels and alternative drives (battery-powered vehicles
and hydrogen vehicles, fuel cells and compressed natural gas, use of renewable
energy for CO2-neutral mobility),
- technologies to enhance the safety of vehicles, passengers and other vulnerable
participants in mobility processes (reducing deaths and serious injuries),
- technologies in the field of traffic infrastructure and traffic management (including
safety, reliability, building a network of alternative charging points for hydrogen,
compressed natural gas and electricity, innovative mobile concepts, preventing
traffic jams, traffic information system),
- modern production technologies,
- technologies for sustainable road construction by recycling materials and sustainable
reconstruction of roads.
 Industry sectors: the automotive industry and the related metal processing and electronics
industry, ICT, transport and logistics.
The challenge of sustainable or environment friendly mobility relates primarily to how to use
resources economically and reduce greenhouse gas emissions (GHG) while ensuring an adequate
level of safety for road users. On the one hand, the answer to this question includes measures to
promote the use of public transport and other solutions in the field of traffic infrastructure and traffic
management. On the other hand, it refers to development of new solutions to increase efficiency
and reduce emissions in traffic, the use of technologies for alternative fuels and drives (electric
vehicles powered by batteries, hydrogen vehicles, fuel cells, efficient drives, auxiliary systems for
quiet and clean vehicles, the use of renewable energy sources for CO2-neutral mobility), and
technologies to increase the safety of both road users and load. These technologies include the use
of advanced, lightweight materials, nanotechnology, micro- and nano-electronics and other key
enabling technologies in the automotive industry and other industries related to traffic.
41
Based on existing industries and current investments in competences and knowledge, Slovenia has
great potential for growth in these areas. We have several companies that are world leaders in this
field. It is reasonable to exploit this potential and adapt the system to encourage new forms of
mobility, for example hydrogen and electric vehicles (construction of infrastructure, adapting
legislation, smart grids).
A comprehensive look at sustainable mobility in Slovenia must be based on the competences of the
home environment, with an emphasis on the supply chain in the automotive industry, where
Slovenian industry is currently well positioned. For further development, it is essential to involve all
stakeholders: industry, R&D partners (universities, public research institutions, centres of
excellence), institutions for advanced technologies (such as competence centres), and clusters in
order to support the industry. Research institutions need to be directed towards developing
solutions in the areas relevant to Slovenian industry.
3.3.3. Food, health and ageing population
Priority areas that respond to the challenge:
 Technological areas:
- Biotechnology and other technologies,
- Technologies that support organic food production and other schemes for higher
quality and the establishment of short food supply chains.
 Industrial sectors: pharmaceutical and chemical industries, food-processing industry, tourism
and health services (boutique tourism, spas, sports, leisure, health-care services, care for the
elderly, medicine).
Changes in the population structure as a result of the ageing population have economic and broader
social consequences. The changes affect the financing of pension systems, expenditure related to
health systems, and patterns of consumption and saving. These challenges present opportunities for
the technological development of mainly the pharmaceutical, chemical and food-processing
industries. They also offer opportunities for the development of various service activities related to
health and food which do not require high technologies, but are important in terms of employment.
In this regard, it is particularly important to develop boutique (family) tourism and primary food
production in connection with the food-processing industry (the development of new business
models for marketing, new sales channels).
There is great potential for developing new technologies in the field of organic farming, both in the
production and processing of organic products, as this sector is poorly developed in Slovenia.
Slovenia has excellent potential for developing organic farming and thus the processing industry in
the field of organic agriculture. Currently, there are approximately 2300 farms engaged in organic
farming in Slovenia, with more than 32,000 ha of agricultural land. Yet, only 150 processing plants
are currently working, which means that there is considerable potential for developing this industry
in the future.
The key enabling technology in this field is biotechnology. In recent years, biotechnology has
significantly influenced the growth of the pharmaceutical industry. This is one of the fastest growing
markets. The aim of biotechnological companies is to develop a new generation of medicine with the
help of genetic engineering. The biological pharmaceutical industry is based on understanding and
using the human's own mechanisms to find solutions to medical problems. This area is currently
dominated by U.S. companies, since more than 60% of development in biotechnology is generated in
the United States. The use of biotechnology is not limited only to medicine and health, but is also
42
present in other industrial sectors and agriculture. According to the OECD30, 87% of all R&D
expenditure on biotechnology in 2003 was related to use in health. By 2030, this share is expected to
drop to 25%, due to an increase in the share in agriculture (36%) and other industrial sectors (39%),
which covers, for example, the development of bioplastics, biofuels, biosensors and biometrics.
3.3.4. Potential of key enabling technologies - KET


Key enabling technologies are:
Nanotechnology, micro-and nanoelectronics, photonics, advanced materials, biotechnology,
advanced manufacturing and process technologies (with advanced technologies of process
management)
Industrial sectors: ICT, electrical industry and electronics, metal-processing industry,
mechanical engineering and tool-making, automotive, food-processing, chemical and process
industries, textile, energy, environmental, pharmaceutical, construction, aerospace industry
and telecommunications
An important contribution to the development of existing and new industries that respond to current
and future challenges is made by the use of solutions based on key enabling technologies (KET31). In
terms of their economic potential, contribution to overcoming social challenges and concentration of
knowledge, these are strategically the most important technologies. The global KET market
reportedly increased by 154% from 2008 to 2015: from EUR 646 billion to more than EUR 1 trillion.






Nanotechnology (including ICT) promises to lead to the development of smart nano and micro devices and
systems, and radical breakthroughs in key areas, such as health-care, energy, the environment and production.
Micro- and nanoelectronics, including semiconductors (including ICT) are essential for all goods and services
which require intelligent control, in such diverse sectors as automotive and traffic sectors, aeronautics and space
sector. Smart industrial control systems enable more efficient management of production, storage, transmission
and consumption of electricity, with intelligent electrical grids and devices.
Photonics is a multidisciplinary field that deals with light and includes its production, detection and management.
Among other things, it provides the technological base for the economical conversion of sunlight into electricity,
which is important for the production of renewable energy, and a number of electronic components and
equipment, such as photodiodes, LEDs and lasers.
Advanced materials offer significant improvements in a variety of areas, e.g. in the automotive industry, metalprocessing and electrical, textile, paper industry, metallurgy, transport, construction and health-care, etc. They
facilitate recycling, reduction of carbon emissions and energy consumption, and limit the need for raw materials,
which are rare in Europe.
Biotechnology brings cleaner and sustainable opportunities for processing in industry and the agricultural and
food sector. In this way, for example, it enables the gradual replacement of non-renewable materials that are
currently used in various industrial sectors with renewable sources. Its use is only just beginning.
Advanced manufacturing and processing technologies include: technologies for factories of the future,
technologies for energy-efficient buildings and systems, sustainable, resource-efficient and low-carbon
technologies in energy-intensive process industries, new sustainable business models. Modern manufacturing and
process technologies are based on a high share of embedded knowledge and connect with the areas of ICT (e.g.
the development and implementation of multimedia and interactive tools) and new materials. They represent the
technological infrastructure of the whole industry.
In Europe and also in Slovenia, there is a large gap between the acquisition of basic knowledge and
its subsequent marketing in the form of goods and services. This is called ‘the valley of death’. The EU
is the world leader in research and has more than 30% share of patent applications, but it does not
30
The Bioeconomy to 2030, OECD, 2009
Key Enabling Technologies: The European Commission defines KET as technologies that require a lot of knowledge, very intensive
research and development, rapid innovation cycles, high investment expenditure and highly skilled workforce. They enable innovation in
processes, products and services throughout the economy and are systemically important. They are multidisciplinary, extending to many
technology areas, with a trend towards convergence and integration.
31
43
turn its strong research base into the production of goods and services, which are necessary to
promote growth and create jobs. With the new strategy for promoting the industrial production of
products based on KET32, the European Commission seeks to achieve an integrated approach to
financing research and innovation in this area. This includes the entire chain of the transfer of
research results into commercial products and economic growth.
In the Horizon 2020, which is a key EU instrument for financing research and development in the
financial perspective 2014-2020, support for KET is among the highlighted areas of financing: ICT,
nanotechnology, advanced manufacturing and processes, advanced materials, biotechnology,
bioeconomy, space. The following incentives are planned for the mentioned sectors/technologies:
incentives for R&D, large pilot projects, demonstration projects, equipment for testing (‘test beds’),
living labs, prototypes, evaluation of products, pilot lines.
Even in the Cohesion Policy, the European Commission suggests KET as one of the priority
investments in the financing of regional innovation. The European Regional Development Fund
(ERDF) thus also opens the possibility of support for all key stages in the development of
technologies and products. Financing is available for: ‘technological and applied research, pilot lines,
measures for the early validation of capacity, and initial production’. An important source of
financing of the development and introduction of KET is also the European Investment Bank, which
invests around EUR 1 billion in these technologies annually.
GUIDELINES:
(47) Promoting research and development activities and investments in priority technology and industrial
areas that address social challenges, in accordance with the concept of smart specialisation. In this
context, in particular:
 Promoting various forms of connections between companies and institutions of knowledge (higheducation, research and consultancy organisations) in priority technology and industrial areas that
show potential and national-economic effects (horizontal and vertical integration, which covers the
entire value chain, to accelerate the commercialisation of new products and services).
 Review and evaluation of the results of previous development instruments aimed at technology
areas and industrial sectors (CoE, CC, DCSE), the decision to upgrade instruments based on the
analysis of the results.
 Adoption and implementation of action plans on the initiative of the economy for individual areas
where certain problems exist (for example: Action plan ‘Wood is beautiful’ - to connect woodprocessing industries) or where it is necessary to make systemic changes for the introduction of
breakthrough technologies (for example, electro-mobility - necessary amendments to legislation,
infrastructure solutions).
(48) Promoting the transition to a green economy by promoting innovation and the introduction of new
green products to the market and by considering impacts on the environment (so-called green
indicators: share of EE, RES, recycling, reducing the use of hazardous substances and discharges) in the
allocation of resources through public tenders.
(49) The implementation of systemic measures to promote the wider use of environmental and energyefficient devices/products and services, for example by:
 Enforcing the Ecodesign directive, energy labelling of household appliances, European environment
label, etc.
 Encouraging and promoting voluntary initiatives of industry to employ the best environmental
management practices, with the European Directive for the Eco-Management and Audit Scheme
(EMAS), ISO14001,
 Improving standardisation procedures and certification schemes.
32
http://ec.europa.eu/enterprise/sectors/ict/files/kets/act_en.pdf
44
3.4.
ACTIVITIES FOR THE LONG-TERM DEVELOPMENT OF INDUSTRY
The concept of smart specialisation brings to the fore activities to strengthen the competitiveness of
the economy. In the context of SIP, these activities can be divided into three main groups:
(1) Promoting internationalisation and the utilisation of globalisation effects
(2) Promoting industrial development and strengthening brands
(3) Restructuring companies in all stages of development
3.4.1. Promoting internationalisation and the utilisation of globalisation effects
Due to uncertain growth in the domestic market and stagnation in domestic demand, the
internationalisation of business operations is becoming an increasing necessity.
Internationalisation, which means the process of integration into international business currents, is
an answer to opportunities opened up by the growth of the global economy. Effective government
policy should encourage increased involvement of businesses and the economy in international
business and international value chains, also by promoting innovative ways of establishing the
Slovenian economy in international markets, such as pilot and demonstration projects, and various
modes of internationalisation through joint investments of knowledge, technologies and capital .
Promoting internationalisation refers mostly to small and medium-sized enterprises (SMEs), which
have limited resources (financial, human and other). This is particularly important in sectors with
strong value and supply chains, such as the automotive industry (including the production of metal
products and the manufacture of electrical and optical equipment), the chemical industry,
engineering, transport and logistics, food-processing and wood-processing industries and business
services.
In the following decades, there will be an increased global demand for all types of low-carbon
technology. This enables the Slovenian economy to strengthen its position in the export of products
and services based on our skills, which we will develop in the future on the basis of the concept of
smart specialisation.
For greater economic integration in international business, it is also necessary to promote foreign
direct investment (FDI), both inward and outward, since foreign investment greatly contributes to
the transfer of knowledge and technologies and to the integration of domestic companies into
international value chains. WIPS 2008-2010 predicts that the greatest expansion of FDI will occur in
the following activities: telecommunications, trade, business and other services, electricity, gas and
water, transport, infrastructure, production of professional equipment, metal and non-metallic
products, and less in the production of motor vehicles, and the chemical and food industries. Niches
in the following fields will also be interesting: health, the food industry, transport equipment,
business services, personal services, information and communication technologies, machinery and
equipment, chemicals and plastics, and protection of the environment.
According to our experience, the most attractive activities for FDI in Slovenia are: the manufacturing
of metal products and electrical and optical equipment (especially the production of components for
the electronics and automotive industries), manufacturing of chemical and plastic products, the
paper industry and the manufacturing of textiles. Individual large FDI projects are also in the
automotive, pharmaceutical and rubber industries. Slovenia is certainly not competitive in terms of
labour and spatially intensive investment. The most common FDI in services is in trade, finance and
various business services.
45
3.4.2. Promoting industrial development and strengthening brands
Industrial design, which is one of a wider range of cultural and creative industries (CCI)33, is becoming
increasingly recognised in the world as an important component of economic growth and a key
factor in competitiveness. In the broadest sense, it can be understood as a bridge between creativity
and innovation. It is necessary to stress that design is an important source of innovations in those
economic sectors in which investment in R&D is low, for example in the furniture or textile industry
(non-technological innovations). Design allows non-price competition through the differentiation of
products or services on the basis of their function, aesthetics, durability, reliability, etc. The use of
design makes it easier for companies to build recognisable images, marketing, brand loyalty; it
optimises production processes, reduces production costs, etc.
According to designers, Slovenia's key problem is that the development orientation and recognition
of Slovenian companies and their brands are inadequate, and that managers lack awareness of the
use and importance of design. In the majority of Slovenian companies, design has a minor rather
than strategic role, and is most commonly understood as the appearance of the product/service.
Only approximately 5% of companies invest more than 10% of their development resources in
design. And there are only approximately 5% of such companies where design costs are over 10% of
the selling price of the product/service. The analysis of the survey data shows a clear connection
between the design and development of new products/services/processes, especially those that
contain significant innovation/design. In addition, there is clearly a link between the use of design
and the performance of the company in terms of profitability, market share and revenue growth.
Companies that are successful in European markets invest more in design than companies that
appear only in local or national markets. The fact is that in recent years in Slovenia, we have invested
significant resources in R&D projects for technological innovation, while non-technological
innovation has been neglected.
3.4.3. Restructuring companies in all stages of development
The competitiveness of the economy, the preservation of its operations and jobs, and new product
development are becoming increasingly dependent on the capacity of enterprises to continuously
adapt to change or to restructure. The need for restructuring results from technological change,
innovation, fierce competition and the emergence of new competitors, changes in consumer
preferences, changes in legislation, the availability and prices of resources and other inputs, access to
markets, etc. The pressure for a change, which may occur in normal conditions, becomes stronger
during long periods of weak economic activity. Companies that fail to adapt to changing conditions
will not keep up with competitors in the long term.
Narrower aspect of restructuring
In Slovenia, from 1995 to 2008, the term restructuring of companies during the long-term trade
boom was unduly connected only with companies in difficulties which were threatened with
insolvency and consequent debt settlement or bankruptcy. These are extreme situations in a
company, when a hidden internal and controlled crisis has already grown out of control one and
therefore requires extreme measures which, at least in the early stages, are not focused on growth
and development, but rather on providing liquidity in operations. Such restructuring is carried out in
33
Definition of CCI (adapted from EC Green Paper, 2010): cultural industries: performing arts, visual arts, cultural heritage - including the
public sector, film, DVD and video, television and radio, video games, new media, music, books and printing; creative industries:
architecture, design, graphic design, fashion design, advertising.
46
accordance with the Act Governing the Rescue and Restructuring Aid for Companies in Difficulty34
(AGRRACD), which is approved as a state aid scheme by the European Commission.
The process of granting state aid to rescue and restructure companies in difficulty based on
AGRRACD under the general system of state aid in the Republic of Slovenia and the EU has a very
specific role and cannot have the characteristics of a general systemic measure. It is a normal part of
the functioning of the market and competition for inefficient businesses which are below average in
productivity to cease their operations. This improves the mobility of production factors and raises
levels of productivity in the national economy, and therefore it should not become common practise
for the state to rescue companies which fall into serious difficulties. State aid for companies in
difficulty based on AGRRACD should also not become a substitute or backup measure for other
systems of state aid or economic policy measures which have not produced satisfactory results (e.g.
the emergence of a general lack of liquidity in the economy). Therefore, the use of state aid to
rescue and restructure companies in difficulty based on AGRRACD is permissible only in
exceptional cases and justified only under certain conditions. In this context, this can only be
justified, for example, by social or regional political reasons, the need to consider the strategic role of
individual economic entities in the national economy, or in an extreme case, the desire to maintain a
competitive market structure when the disappearance of companies could lead to a monopoly or
harmful oligopoly situation.
The broader systemic aspect of restructuring
The consequences of the global financial and economic crisis that deeply affected the real structure
of the Slovenian economy require also a systemic intervention in the process of corporate
restructuring. A target group are large companies or larger systems which, due to their multiplicative
effects on the entire Slovenian economy, can be defined as ‘strategic’ companies or as agents of
development in the region (not necessarily only companies in which the state already has ownership
or indirect ownership). These are, in principle, good companies with growth potential that need
restructuring arising from the current capital inadequacy, changes in technology and innovation, and
fierce competition. Corporate restructuring of this type therefore needs to be approached
systematically and timely. Annex 5 presents a proposed model for the early identification of
problems and opportunities, and for timely responses.
Restructuring as a business model of change management
One of the main tasks of industrial policy is to help improve the abilities of companies and industry to
facilitate adjustment to structural changes, not to try to inhibit the negative effects of restructuring.
Restructuring (e.g. closing certain parts of the supply chain, lay-offs of some workers) can have
negative consequences, but it is necessary to improve the efficiency of the economy in the long run.
Therefore, it is necessary to focus on measures that facilitate the reallocation of resources to other
companies or sectors with higher added value. The need for restructuring in some sectors and the
sectoral reallocation of labour require the elimination of existing shortcomings regarding the
adaptability of enterprises and employability of workers.
The need for restructuring and adaptation occurs due to the growth and development of a company
as well as pressure for the company to remain competitive. The changes may include changes in the
company's activities, new business, management or marketing models, organisational changes in
management, outsourcing (transferring activities to another company) or offshoring (transferring
activities to companies abroad), eliminating activities in a new company (spin-offs), and the merger
of companies due to rationalisation.
34
Official Gazette of the Republic of Slovenia, No. 44/07 - official consolidated text and 51/11
47
Restructuring can achieve the following:
- more effective use of basic, business and financial resources of the company, better results
on the balance sheet and profit and loss account,
- internal entrepreneurship, improving job skills and qualifications,
- socially responsible entrepreneurship and business ethics,
- reducing the environmental burden, financial effects and development impetus in terms of
increased material productivity and reduced energy intensity,
- internationalisation of the company,
- the development of innovative solutions such as innovative production methods, better
management of resources, the use of new technologies (e.g. nanotechnology and advanced
materials), etc.
It is necessary to improve restructuring forecasts and management to help staff and companies
adapt to transitions due to excess capacity, as well as with modernisation and structural change. A
passive attitude and resistance to change cause huge economic costs and threaten investment and
employment growth. It is therefore important to create a basis for trust, which will allow companies
and employees to focus on the future in a dynamic way. It is also of great importance to implement
long-term strategic planning, which includes emerging opportunities and fosters growth and
employment. Corporal strategic long-term planning includes human resources, employment and the
development of skills and competences of the workforce, since smooth adaptation to change
requires a suitably qualified workforce and investment in human capital. To preserve jobs, it is
important to predict skill requirements and adapt education and training systems, curricula and
qualifications in cooperation with social partners, and develop a quality apprenticeship system and
enable retraining of workers within the framework of lifelong education for workers. Where staff are
lacking, companies should be willing to search for talent abroad. It is also necessary to invest in ICT
skills and digital literacy.
GUIDELINES:
(50) Promoting the internationalisation of business. In this context, in particular:
 integration of companies for joint entry into foreign markets,
 advice on specific opportunities in foreign markets,
 search for potential partners,
 education on internationalisation,
 support for international business networking,
 joint appearances at fairs,
 economic delegations,
 information and support for businesses in foreign markets, especially outside the EU,
 effective functioning of economic diplomacy in order to improve support for Slovenian companies
abroad,
 active participation in the common EU trade policy to ensure multilateral trade agreements for the
effective penetration of companies to new expanding markets,
 coordinated direction of the economy to third target markets.
(51) Promoting foreign direct investment in order to promote knowledge and technology transfer and the
integration of Slovenian companies (suppliers) in global value chains.
(52) Promoting the use of industrial design in the economy and promoting the development of products and
services with their own trademarks and SQ brands for their appearance in final markets.
(53) Promoting tourism in accordance with the Slovenian Tourism Development Strategy (sustainable tourism
development, promoting Slovenia as a trademark and tourist destination).
48
(54) The implementation of state aid to rescue and restructure companies in difficulty, based on the
AGRRACD act.
(55) The development of systemic solutions for the early identification of problems and opportunities and for
responses for companies which can be defined as ‘companies of national importance’ according to their
impact on the entire Slovenian economy, regardless of current state involvement in ownership.
(56) Promoting restructuring to improve the competitive position of enterprises by promoting the
introduction of new business models, organisational and financial restructuring, the improvement of
business processes, etc. In this context, support for training to implement socially responsible corporate
restructuring and to facilitate people's adaptation to change.
49
4. EU INDUSTRIAL POLICY AND FINANCIAL FRAMEWORK FOR
THE IMPLEMENTATION OF DEVELOPMENT POLICY
OBJECTIVES
As a member of the European Union, Slovenia participates in the formulation and implementation of
policies at the EU level. Key files from the perspective of industrial policy and financing (withdrawal
of EU funds) are presented below.
EU industrial policy is presented in the European Commission communication ‘An Integrated
Industrial Policy for the Globalisation Era’35. This is one of the seven main thematic initiatives of the
EU 2020 strategy, which carries the important message that, on the one hand, the EU needs industry,
while on the other hand, industry needs the EU. A new approach to industrial policy means that the
European Commission is involving industrial policy in all other relevant EU policies that in any way
affect industry, and is dedicated to analyse the impact of other policies on the competitiveness of
industry. The Commission otherwise advocates a horizontal approach in the future, while also noting
that some sectors require additional, custom-made measures.
Priority actions identified by the Commission in the document are:
- examining the impact of legislative and non-legislative proposals on competitiveness (on
the basis of impact assessments, the Commission constantly monitors the effects of policies;
there are guidelines for this, but they need to be additionally adjusted to aspects of
competitiveness),
- improving access to financial resources (the effects for access to finance need to be
evaluated, especially for SMEs),
- strengthening the internal market (it will be necessary to ensure the implementation of the
package for products; also, to upgrade the Services Directive, especially for business services,
it will be necessary to determine how to establish an internal market for business services in
the best possible way after the implementation of the Services Directive, and the protection
of intellectual property rights will also need to be strengthened),
- better infrastructure (it will be necessary to eliminate bottlenecks in transport and energy
infrastructure and to continue the liberalisation of energy markets),
- standardisation,
- new industrial and innovation policy (it will be necessary to accelerate the marketing of new
technologies; KETs are important, as well as public-private partnerships; it is necessary to
strengthen cooperation between the EU and member states for those technologies where
the internal market is not being established fast enough; the EC will examine the concept of
innovative partnerships and joint technology initiatives; clusters are also important, as well
as the promotion of cross-border research, development and innovation, etc.),
- globalisation (the Commission wants to improve the internationalisation of SMEs; the import
of raw materials from third countries is an important issue),
- promotion of industry modernisation (the Commission intends to develop sectoral industrial
strategies in accordance with a timetable for a permanent and low-carbon economy by 2050.
The action plan for eco-innovation will be combined with the marketing aspects, and a
greater role for the private sector is important for this; new state aid guidelines and
guidelines for restructuring the economy are also important),
- sectoral approach (space is a key area, Galileo and similar projects should be connected with
business as much as possible; challenges exist for industries in the field of sustainable
mobility, as well as in sectors which will have to respond to social challenges in future climate change, health, safety; the chemical industry, for example, is important as a sector
35
COM(2010) 614 final.
50
with a strong value chain, similar to the food industry; special attention will need to be
devoted to all energy-intensive industries).
The Small Business Act for Europe, adopted in 2008, provides a comprehensive policy framework for
SMEs in the EU. The purpose of the Act was "to improve the general policy approach to
entrepreneurship in order to irreversibly place the principle ‘Think Small First’ in the formation of
policy, from the preparation of legislation to public service implementation, and to promote SME
growth by helping them to resolve the remaining problems which inhibit their development." The
Small Business Act contains 10 principles, which provide concrete guidelines for the European
Commission and EU member states for the implementation of policies, and a set of new legislative
proposals based on the principle ‘Think Small First’. The Small Business Act for Europe is being
implemented through national action plans (2010-2011 and 2012-2013).
The long-term financial framework of the EU is an important part of budget resources within
individual development policies for achieving the objectives, and represents an agreement on key
priority tasks and frameworks of EU budget expenditure for the period 2014-2020. Within the
framework, three programmes are especially highlighted: (1) COSME, (2) Horizon 2020 and (3)
Cohesion Policy.
Table 4: Planned financial framework of the EU for achieving development objectives in the
financial perspective 2014-2020
Programme
Total budget 2014-2020* in
EUR
COSME
2.5 billion
financial mechanisms (guarantees,
venture capital)
EEN operation
1.4 billion
sectoral activities (including tourism)
220 million
HORIZON 2020
80 billion
- Industry:
17.9 billion
* KETs
13.7 billion
420 million
* financial mechanisms (guarantees,
venture capital)
* Innovation in SMEs
3.5 billion
- Social challenges:
31.7 billion
0.6 billion
* health, demography
8 billion
* food, sea, bioeconomy
4.1 billion
* energy
5.7 billion
* transport
6.8 billion
* climate, raw materials
3.1 billion
* inclusive society
3.8 billion
COHESION (SOC., ECON., TERRIT.)
336 billion
NOTES:
* These are the expected resources that have not been finalised
51
4.1.
COSME
Programme for the Competitiveness of Enterprises and SMEs - COSME with a budget of EUR 2.5 billion
in the period 2014-2020 is a framework programme which will largely continue the activities under the
current Competitiveness and Innovation Framework Programme (CIP) and will focus on financial
instruments and support for businesses through the Enterprise Europe Network (EEN), as well as
activities in the field of tourism, encouraging entrepreneurial culture, international business
networking, international business, supply and marketing chains, etc.
The programme has the following general objectives:
Improving access to financing for SMEs in the form of equity and debt sources: firstly, an equity
instrument for investment in the growth phase will, through financial intermediaries, provide
market-based, reimbursable equity financing for SMEs, primarily in the form of venture capital.
Secondly, a debt guarantee instrument will enable SMEs to share the risk with financial
intermediaries for providing loans. Total resources for financial instruments amount to EUR 1.4
billion.
Improving access to markets in the EU and globally: growth-oriented business support services will
be provided by the Enterprise Europe Network, which will facilitate business expansion in the
unified market. The programme will provide financial support to SMEs also outside the EU. There
will also be support for international industrial cooperation aimed specifically at reducing the
differences between the regulatory and business environments of the EU and its main trading
partners.
Encouraging entrepreneurship: the measures will include the development of entrepreneurial
culture and approaches, especially among new and young entrepreneurs and women.
The programme is supposed to help 39,000 companies per year, which would create or preserve
29,500 jobs annually and introduce 900 new products, services or processes to the market.
4.2.
Horizon 2020
The Framework Programme for Research, Development and Innovation - Horizon 2020 is a key
pillar of the Union of innovation, a leading initiative of the strategy Europe 2020, which is intended to
improve Europe's global competitiveness. Horizon 2020 is the successor to, or the upgrade of, the
current 7th Framework Programme for Research and Development.
Financial resources for Horizon 2020 (EUR 80 billion in total according to assessment36) will be used to
focus on three main objectives. Firstly, the programme will contribute to the EU retaining a leading
position in the field of science. EUR 24.6 billion are planned for this purpose, including a 77-percent
increase in resources for the very successful European Research Council (ERC). Secondly, the
programme will also contribute to providing industry a leading role in innovation, with a budget of EUR
17.9 billion. This includes the greatest investment of EUR 13.7 billion in key technologies, as well as
greater access to capital and support for SMEs. Thirdly, EUR 31.7 billion will be intended for addressing
the most important issues involving all Europeans. These issues cover six topics: health, demographic
change and well-being (health and senior tourism); food supply, sustainable agriculture, marine and
maritime research and the bio-economy; safe, clean and efficient energy; smart, environment
friendly and integrated traffic; climate measures, resource efficiency and raw materials; and
inclusive, innovative and secure societies.
36
The exact details regarding financial resources will not be known until the adoption of the regulation, supposedly by the end of 2013.
52
Funds totalling EUR 3.5 billion will be used for the larger and disseminated use of financial instruments,
releasing loans from financial institutions in the private sector. The instruments have proved to be
extremely effective in stimulating private investment in innovation, which directly leads to growth and
job creation. SMEs will receive approximately EUR 8.6 billion due to their important role in innovation.
Under Horizon 2020, almost EUR 6 billion will be invested in the development of European industrial
capacities within the key enabling technologies (KETs). These include: photonics and micro-and
nanoelectronics, nanotechnologies, advanced materials, modern production and processing, and
biotechnology. The development of these technologies requires a multidisciplinary approach, with a
great deal of knowledge and capital.
4.3.
Cohesion Policy for the period 2014-2020
The Cohesion Policy for the period 2014-2020 has two priority objectives: ‘Investment for Growth
and Jobs’ and ‘European Territorial Cooperation’. In future, the Cohesion policy will be more closely
connected to achieving the objectives of the Europe 2020 Strategy, to which the Fund for Rural
Development and The European Maritime and Fisheries Fund should contribute considerably more,
since they will be implemented together with the Cohesion Policy within a unified strategic
framework.
The following thematic objectives are emphasised:
(1) strengthening research, technological development and innovation;
(2) increasing access to ICTs and their use and quality;
(3) increasing the competitiveness of SMEs;
(4) supporting the transition to a low-carbon economy in all sectors;
(5) promoting climate change adaptation and risk prevention and management;
(6) protecting the environment and promoting the efficient use of resources;
(7) promoting sustainable traffic and removing bottlenecks in key network infrastructures;
(8) promoting employment and labour mobility;
(9) promoting social inclusion and combating poverty;
(10) investing in education, skills and lifelong learning,
(11) building institutional capacity and efficient public administration.
53
CONCLUSION
Industry plays a key role in economic development. In Slovenia, its role is even more important, as
manufacturing contributes over 20% of total added value, while the EU average is approximately
15%. In addition, at least a quarter of service activities are related to industry. It is also a fact that
80% of total private investment in R&D is related to industry. Therefore, industry is the main source
of innovation, while also providing solutions to the social challenges we are facing.
In recent times, the role of industrial policy in the world has been strengthening. Globalisation, rapid
changes, the competitive pressures of fast-growing countries, social challenges all require that
countries mark the direction of economic development. This direction must be based on achieved
competences and capabilities, which is the essence of the concept of smart specialisation. Great
changes and also opportunities have arisen from a new paradigm of development resulting from
concepts of green growth (OECD), a green economy (UNEP) and a materially-efficient and low-carbon
society (EC), which are based on improving efficiency (energy, material, environmental and social)
instead of relying on increasing consumption of space, raw materials and energy.
With SIP, Slovenia has laid the foundations and set the directions for further work in connection with
the next EU financial perspective for the period 2014-2020. Many expect for document to determine
the traditional industries or even companies that are important for making an economic
breakthrough. However, this approach would be a mistake. The task of industrial policy is not ‘to
choose winners’. The market has to play this role. In addition, industries are no longer homogeneous
or nationally independent; therefore, focusing on traditional sectors is outmoded.
Instead, it is primarily necessary to strive to improve the business environment, making it attractive
to both domestic and foreign investors, which will allow companies to realise their full potential for
growth and development. Secondly, it is necessary to encourage the creation of new innovative
businesses and support their growth. Furthermore, the economy needs to focus on promising areas
which lead to high growth and simultaneously address social challenges. These priority areas refer to
technologies and their application in industrial sectors. From this perspective, any sector can be
highly innovative with the use of modern technologies (biotechnology, advanced materials), even
labour-intensive wood-processing or textile industries. And finally, companies need to be encouraged
to restructure in order for their structure to respond to rapid changes in the market. This needs to
happen before problems occur, since it is often too late then.
The results produced by a new modern industrial policy will primarily depend on companies and their
ability to adapt to changes brought about by the globalisation and competition from fast-growing
developing countries. Industrial policy can only be a catalyst for structural change, while companies
are the main agents. The role of industrial policy is limited to giving directions and encouraging
companies to increase their investment in R&D, to enhance their development potential and
technological innovation in both the manufacturing and service sectors. Equally important is the
promotion of non-technological innovation, covering new business models, or to put it simply,
business skills and entrepreneurship, which are particularly necessary in introducing new solutions to
the market. Knowledge must be manifested in new market products, processes and technologies.
And for this, the availability of national entrepreneurial potential is extremely important.
54
ANNEXES
55
ANNEX 1: Productivity in manufacturing37
The productivity of manufacturing activities (measured by value added per employee) by sectors,
compared to the EU average
(Figure:
Axis X: Low technology industries, medium-low technology industries, medium-high and high technology industries. Axis Y: EU27 average =
100. Source: Eurostat Portal Page – National Accounts, 2012.
Key: C21 - pharmaceutical industry, C20 – chemical industry, C29-30 - manufacture of vehicles and vessels, C27 – electrical equipment
industry, C28 - manufacture of machinery and equipment, C26 - production of ICT equipment (medium-high and high technology
industries); C22-23 - manufacture of rubber and plastic products, other non-metallic mineral products; C24-25 – metal industry (mediumlow technology industries); C10-12 - food and tobacco industry, C16-18 – wood and paper industry, printing, C13-15 - textile and leather
industry (low technology industries); C31-33 – furniture industry, other various manufacturing industries (low technology industries), repair
and installation of machinery (medium-low technology industries), C19 – the production of coke and petroleum products is not shown due
to small share in the activity structure.)
37
IMAD: Development Report 2012
56
The share of medium- and high-tech activities and the level of productivity of manufacturing activities,
2010
(Figure:
Axis X: The share of medium-high and high technology industries in the added value of manufacturing activities, in %. Axis Y:
Productivity of manufacturing activities, EU27=100
Source: Eurostat Portal Page – National Accounts, 2012.
Notes: 1 Data for the EU average, Denmark, Germany, Spain, Italy, Lithuania, Portugal, Romania and Sweden are for 2009.
The axes in the figure intersect at the level of the EU average.)
57
ANNEX 2: Slovenia's ranking in international surveys of competitiveness
1) WEF - Global Competitiveness Report - reflects the overall competitive picture of Slovenia
2008-09
2009-10
2010-11
2011-12
2012-13
Rank (out of
134)
42
Rank (out of
133)
37
Rank (out of
139)
45
Rank (out of
142)
57
Rank (out of
144)
56
Basic requirements (20%)
38
29
34
39
39
1 Institutions
49
46
50
55
58
2 Infrastructure
36
31
36
37
35
3 Macroeconomic environment
33
26
34
35
50
4 Health and primary education
21
22
23
24
24
Efficiency promoters (50%)
37
37
46
51
55
5 Higher education and training
22
19
21
21
23
6 Goods market efficiency
50
38
39
48
49
7 Labour market efficiency
61
56
80
102
91
8 Financial market development
46
48
77
102
128
9 Technological readiness
30
32
35
32
34
10 Market size
70
72
78
80
78
Innovation factors and business
sophistication factors (30%)
11 Business sophistication
33
30
35
45
36
34
33
36
49
53
12 Innovation
33
29
34
40
32
Global Competitiveness Index - GCI
Source: WEF
2) IMD - World Competitiveness Yearbook - reflects the economic and business aspects of
Slovenia's competitiveness
2009
2010
2011
2012
Rank (out of
57)
32
Rank (out of
58)
52
Rank (out of
59)
51
Rank (out of
59)
51
1 Economic success
21
42
43
43
2 Government efficiency
38
53
53
53
3 Business efficiency
39
57
56
57
4 Infrastructure
27
34
31
33
World Competitiveness Scoreboard
Source: IMD
58
3) WB - Doing Business - reflects the difficulty of doing business in Slovenia
2009
2010
2011
2012
Rank (out of
181)
54
Rank (out of
183)
53
Rank (out of
183)
37
Rank (out of
183)
37
Starting a business
41
26
28
28
Obtaining building permits
69
59
74
81
27
27
Ease of Doing Business
Getting electricity *
Employing *
158
162
Registering property
104
108
99
79
Obtaining a loan
84
87
96
98
Protection of investors
18
20
21
24
Paying taxes
78
84
86
87
Cross-border trade
78
84
60
50
Enforcing contracts
79
60
58
58
Resolving insolvency
38
40
38
39
* 2011 - change in methodology
Comment: The improvement of ranking by 16 places in 2011 was mainly due to changes in methodology (the
‘employment’ indicator was excluded and Slovenia ranked poorly in this area) and did not reflect the actual progress.
Source: World Bank - Doing Business
59
SLOVENIAN INDUSTRIAL POLICY
Slika 1: Celoviti instrumenti podpore v okviru programa ukrepov za spodbujanje podjetništva
konkurenčnosti
ANNEXin 3:
Comprehensive support instruments within the framework of the programme
of measures to promote entrepreneurship and competitiveness in the period 20072013 - SWOT ANALYSIS OF MEASURES IMPLEMENTED SO FAR BY THE MINISTRY OF ECONOMIC DEVELOPMENT AND TECHNOLOGY (MEDT)
Denarni tok
podjetij
Cash flow
PRED SEMENSKA IN
SEMENSKA FAZA
FAZA RAZVOJA IN RASTI
USTANOVITEV
PODJETJA
FAZA NADALJNJE RASTI,
PRESTRUKTURIRANJA IN
INTERNACIONALIZACIJE
START UP FAZA
Stopnja razvoja MSP
(Level of development of SMEs, from left to right: pre-seed and seed phase, establishment of a company, start-up phase, development and growth, phase of further growth, restructuring and internationalisation)
The voucher system of training - content included in the instrument of Ministry of Labour, Family and Social Affairs (MLFSA)
Professional and vocational education
Financial
Instruments in
support of growth
and development
Subsidies for
companies
start-up
of
innovative
Transfer of R&D to markets - VALOR
Strengths of the current measure
Weaknesses of the current measure
- integration of contents with the actions
of other sectors which have the
resources and are responsible for
training programs (MLFSA)
- funds available for other instruments
- the beginning of directing towards
narrower content
- eventual reduction of the impact on
the contents
- lengthy procedures due to cohesion
funds
- one of the few measures in support of
vocational training, encouraging
students/employers for occupations of
professional and vocational education
- a measure with tradition
- chambers recognise the measure as
very positive since it is derived from the
actual needs of the economy
- a measure with proven effects
- a special/only measure for the initial
phase of company development (so the
Slovene Enterprise Fund (SEF) covers
the entire life-curve of a company)
- a measure with tradition
- a broad population of businesses and
all regions
- good company yield despite unclear
potential
- an elaborate methodology in
cooperation with SEF / Ministry of
Economy (ME) / entities of innovative
environment (EIE)
- increasing involvement of EIE in the
selection
- a narrow target group
- initial operation of the companies
- limited effects (no evaluation)
Opportunities for future
- establishment of a structured
approach for the development of
systems to support training, the
possibility of obtaining additional
financial resources (within the
framework of other ministries)
- upgrading actions with targeted
content
- MLFSA is looking for content for
programmes
- link to the measures of MLFSA and
Ministry of Education and Sport (MES),
- guidelines for future (what to support
and why) on the basis of the evaluation
of measures and proposals by the
chambers (Chamber of Commerce and
Industry, Chamber of Craft and Small
Business of Slovenia, Slovenian
Chamber of Commerce)
Threats
- termination of programmes within the framework
of MLFSA
- termination of programmes within the framework
of MLFSA, MES
- restrictions on EIE
- a demanding selection of companies
due to a large number
- company potentials unclear in the early
stages - which is the specific of the
measure
- clear selection of projects according to
the content and potential (complete the
criteria)
- opening outside the EIE (limited space
within EIE)
- integration with mentoring
- upgrading sources of funding with soft
support
- upgrading by opening companies
abroad
- partnerships, funding sources, markets
- a link to the activities of TTO and EIE
- allocation of additional funds
- changing concepts too fast
- not enough resources
- criteria for project selection not clear enough
- private initiatives pushing forward
- understanding development as being just
‘technology’
- no clear achieved results
- low resources
- connecting with mentoring and P2
- upgrading funding sources with soft
- changing concepts too fast
- not enough resources
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SLOVENIAN INDUSTRIAL POLICY
Promoting technological investment
Equity financing: Venture capital
Equity financing: Mezzanine loans
Voucher system of support for growth and development - special contents
Strengths of the current measure
- the transfer of knowledge to the
markets through new business
- there is no connection to EIE
- individual interviews in 2nd round of
selection due to the small number of
companies
- an attractive measure, especially
desired by companies and the public
- the environment becomes accustomed
to subsidies
- a measure easy to implement and
control
- with investments we stimulate both
supply and demand in the market
- support for projects with high growth
potential
- in addition to resources also other
competences, markets, links
- the development of the venture capital
market
- the manager is SEF, exemplary
cooperation with them
- a closed gap in the initial financing of
companies
- activities within the holding fund, which
enables combination and simple
supplementing of resources and
instruments - multiplication of resources
(2 times),- a revolving effect
- support for projects with higher risk
- in addition to resources also other
competences, markets, links
- the development of the venture capital
market
- a closed gap in the initial financing
of companies
- activities within the holding fund, which
enables combination and simple
supplementing of resources and
instruments - a revolving effect multiplication of resources
- simple tool for businesses
- focusing on core content, possibly for
target groups
- reaches a broad population of
companies
- a combination of support: for
technological and non-technological
innovation - as the basis for growth and
development
Weaknesses of the current measure
- unclear potential of companies in the
early stages - which is the specific of the
measure
Opportunities for future
support
- a link to the activities of TTO and EIE
Threats
- criteria for project selection not clear enough
- private initiatives pushing forward
- mainly targeting ‘technological development’
- subsidies for investment are no longer
topical
- not enough funds
- demand for resources 7 times greater
than available resources
- horizontal contents - no contents
- using refundable resources for
investment (guarantees + interest rate
subsidies, loans, mezzanine financing)
- refundable resources already accepted
as an alternative to subsidies and they
achieve higher multiplier under the
same effects
- submission of policy to ‘the call’ of the public
- resources damaging potential for other
instruments
- such subsidies distort the conditions in financial
markets - sources of financing
- new and unknown instrument
- recognition in Slovenia
- the acceptance of Slovenian
companies for equity investment and coownership
- supplementing with other types of risk
financing (mezzanine, global, matching
etc.)
- opening financing at regional level
- establishing a centre for this part of
Europe (SEE)
- clear promotion
- clear cooperation with the Capital
Assets Management Agency (CAMA)
- upgrading knowledge at ME and SEF integration with other instruments (P2,
mentoring)
- lack of understanding/knowledge in the
environment
- passivity of CAMA/supervisors
- inactivity of companies/operators
- lack of SME projects in Slovenia for this type of
financing
- new and unknown instrument
- recognition in Slovenia
- the acceptability of Slovenian
companies for equity investment and coownership
- interest of the banks
- supplementing with other types of risk
financing (mezzanine, global, matching
etc.)
- opening cooperation with the banks
- removing the credit crunch
- clear cooperation with CAMA
- upgrading knowledge at ME and SEF
- allocation of additional resources
- lack of understanding/knowledge in the
environment
- passiveness of CAMA/supervisors
- inactivity of companies/operators
- banks are not responsive
- the unwillingness to risk - method of
implementation (banks should be intermediaries)
- PFA and Regulation
- changing concepts too quickly
- still too complicated despite
simplifications
- slow implementation and lasting one
year
- upgrading and not changing the
concept
- call for several years
- clear promotion of the Voucher as a
simple instrument
- information support - e-Voucher
- complementing with contents and
expanding to other departments
- a potential instrument for regional
focus
- changing concepts too often
- a tendency to return to broad concepts without
focus
- lack of resources
- lack of consideration for non- a lot of instruments to support R&D and therefore
- elimination of weaknesses
technological innovation
a lack of transparency
- good practice on how to use the
- the entire process of new product
- a lack of understanding of the complete process
resources of the operational programme
development is not covered
of new product development - from market to
for human resource development to
- poor/weak projects
market
support growth and development, or
- inability to clearly measure
- a lack of understanding of non-technological
R&D
upgrades/development of competences
innovation
Instrument which is perfectly complementary with Ministry of Higher Education, Science and Technology, or even MLFSA, delivering results suitable for transfer.
- support for small projects
- many companies
- suitable for regionalisation
- a large extent of work
- a broad target group
- abundance of work
- a social measure
- small, partial effects
- an action to eliminate the credit crunch
- using operational programme for
human resources development to
support development projects
- motivating companies for
inter/multidisciplinarity
- upgrading internal project teams
Interdisciplinary groups
Staff mobility
Micro guarantees (2011)
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SLOVENIAN INDUSTRIAL POLICY
Development guarantees with interest rate subsidy
Direct loans (2011)
Development investment projects in the economy
Development Centres of the Slovenian Economy
Strengths of the current measure
- excellent alternative to former
subsidies
- multiplier of resources and revolving
- interest rate subsidy is a part of
financial engineering
- implementation through holding fund
- a clear strategy and a long-term
programme of SEF
- clear effects on both companies and
banks
- also working capital tied to R&D
- recognised and accepted by companies
- a stable instrument
- a horizontal instrument without priority
areas
- possible correction of anomalies in the
market of financing resources
- a simple measure to support R&D in
companies
- promoting cooperation between
companies
- large companies, large projects
- there is no limit on the field - a
horizontal
- determining core areas
- support for a more comprehensive
process of an area, not just products
- higher commitment of partners to longterm cooperation
- very high resources
- long-term projects
- easier monitoring
- supporting clustering at a level of
projects
Weaknesses of the current measure
Opportunities for future
Threats
- horizontal, therefore, great company
demand
- already a lack of resources despite the
multiplier
- lack of response from some banks
- even better qualification of SEF
- focusing on core areas (in some part)
- greater coordination with SID - narrow
selection of cooperative banks
- uncertainties in PFA and Regulation
- constant coordination with SID
- lack of resources
- is not carried out
- disputing due to SEF control
- the action is a ‘social’ rather than
development measure
- seeming collaboration
- project monitoring complex and only
technical
- only R&D
- classic partnerships
- details for the concept of monitoring
have not yet been finalised
- a long-term project and strong
partnerships
Public Agency of the RS for Entrepreneurship and Foreign Investments (Japti)
Entrepreneurial and
innovative
environment
Technology parks (TP)
- upgrading content areas
- connecting traditional sectors in new
areas
- link to the sources of funding abroad
FP8
- upgrading refundable and grant
funding
- specialisation for pre-seed activities
- opening R&D infrastructure for
companies
- connection with TTO for comprehensive
- tradition and recognition
valorisation
- support from the relevant ministry
- a long-term programme and placement
- connection and separation in relation to
- tasks of general interest - no state aid
EIE
- development of new services - soft
measures in support of the financing of
companies
JAPTI - Slovenian Technology Agency - Slovenian Tourism Organisation - restructuring of agencies
- specialisation for the development of
services in support of initial operations of
companies
- developing their own sources of funding
- unclear role of the owner
according to the principle of PPP
- short-term funding
- a long-term programme and placement - poor connection/boundary with TTO
- tradition and recognition on a national
the connection and separation in relation
and UI
level
to UI and TTO
- very general activities orientation
- support from the relevant ministry
- development of new services - soft
mainly in promotion and in educational
measures in support of financing
- tasks of general interest - no state aid
programmes
companies
- organised infrastructure
- poor connection with incubated
- development of measures that go
companies
beyond national frameworks (HR, IT, AT,
- overlap with TP
HU)
- specialisation with an emphasis on
international cooperation
- development of support services for
- unclear role of the owner - university
- short-term funding
- unclear content role at the level of
university
- not connected with TTO
- unclear line of separation with EIE
- very general activities, orientation
mainly in promotion and educational
programmes
University incubators (UI)
- use of assets for particular purpose for
direct loans in core thematic areas
- upgrade with support for long-term
cooperation
- simplified monitoring
- better support for non-technological
innovation
- support for modern business models
(open innovation)
- unwillingness of MF to accept the changes of the
Public Funds Act
- companies unwilling to accept serious change
- projects ‘fall’ for failing to achieve the objectives /
due to bankruptcy of partners
- unclear/unconfirmed model of monitoring
- not signing/cancelling the contracts
- complaints - additional resources
- passivity of University, as the main authority
- the inability of staff in the UI
- short-term government support (MEDT,
MESCS)
- lack of interest among owners
- short-term programmes
- too much focus on infrastructure - real-estate
- underdeveloped competences for
comprehensive support for companies
- competition between entities - rather than
integration
- short-term programmes by ministries
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SLOVENIAN INDUSTRIAL POLICY
Strengths of the current measure
Weaknesses of the current measure
- unclear role of the owner
- short-term funding
- very general activities, orientation
mainly in promotion and in educational
programmes
- poor connection with incubated
companies
- overlap with TP
- outdated instrument at a national
level
Business incubators
- tradition and recognition on a regional
level
- support from the relevant ministry
- tasks of general interest - no state aid
- organised infrastructure
Public Fund of the Republic of Slovenia for Entrepreneurship (SEF)
SEF - SRDF (Slovenian Regional Development Fund) - restructuring of funds
Economic development infrastructure
Entrepreneurship for young people
- the economy is used to the form of
support
- support from the relevant ministry
- beginning of the specialisation
- greater number of companies
- cooperation between the economy,
industry and R&D sphere
- setting up the concept and model with
at least partial involvement of MES
- work under the Ministry of Economy
(ME)
- inclusion of all target groups
- partial involvement of all levels
- ambition for placement in the system
- an integrated concept that goes beyond
the ‘entrepreneurship’
- short-term and disconnected
measures
- independent measures - no
upgrades
- not enough emphasis on
internationalisation
- mainly investing in infrastructure
without content (in the past)
- classic business models
- disinterest of the relevant ministry MES
General initial counselling - VEM point (All in One point)
- regional coverage
- accessible and free service for SMEs
and all other stakeholders
- attracting the contractors' private
interests
- promoters of entrepreneurship
Training for entrepreneurship
See the combination of entrepreneurship for young people and training
Soft forms to support
growth and
development
Promoting entrepreneurship, growth, development and internationalisation
- comprehensive promotion in one place
- a series of regular events
- support for private initiatives
- participation with stakeholders in the
environment
- unequal quality of services
- unequal qualifications of contractors
- overlapping with the activities of EIE
- insufficient monitoring of service
quality
- weak connection to EEN, TTO and EIE
- a lack of seriousness of the agency in
charge (Public Agency of the RS for
Entrepreneurship and Foreign
Investments - Japti) to connect all the
agents
- no long-term programme/action plan
as a result of the statement above
- non-transparent spending - a complex
and unconnected portal
Opportunities for future
Threats
clustering of SMEs with the purpose of
international integration
- a long-term programme and placement the connection and separation in relation
to TP
- lack of interest among owners
- development of new services - soft
- short-term programmes
measures in support of the financing of
- underdeveloped competences for
companies
comprehensive support for companies
- specialisation with an emphasis on
- competition between entities - rather than
international cooperation
integration
- focusing on activities on a regional level
- short-term programmes by ministries
- exceeding an infrastructural measure space is no longer a challenge
- focus on narrower content areas
- long-term and connected actions
(programme)
- mandatory international component cooperation
- an opportunity to restructure the
economy
- integration of smart specialisation,
investment in R&D and infrastructure for
long-term development
- long-term objectives and results
- large projects for the new financial
perspective
- support for functioning initiatives
- expanding the model to kindergartens
and universities
- comprehensive promotion with
reference to the events already initiated
in the environment
- establishing a long-term model as a
supplement to formal education
- preparing a national programme to
promote entrepreneurship among young
people
- coordinated actions of VEM entry
points (All in One Place)
- clear measuring of service quality
- higher degree of attracting contractors'
private interest
- connection to EEN, TTO and EIE
- specific services for the
regions/sectors
- updating services according to the
needs of companies
- a clear and comprehensive long-term
programme of promotion/strategy with
support of ME and agencies
- ME as a key authority, preparing and
coordinating
- a special programme council,
preparing guidelines
- even greater connection with events in
the environment
- taking advantage of the initiatives at
the level of EU/world
- setting clear objectives and target
groups - ensuring the sustainability of
the action plan
- poor situation in reference to companies' capital
- inability to achieve consensus for main priorities
at national level
- ministries' short-term support
- a lack of confidence in achieving
results/objectives
- closed business models
- not enough finished products in new markets
- loss of interest and support by the management
of ME/MES
- apathy of the relevant ministry
- the termination of the programme due to a lack of
funds
- a lack of resources
- a constant change of the criteria for the selection
of contractors
- even regional coverage
- services that are no longer topical for the current
business situation
- disconnected operation, or fixing boundaries with
EIE.
- non-commitment to the implementation of the
plan
- lack of resources
- low interest of the private sector
- inactive role of Promotion Slovenia
- a lack of clarity in the transfer from the Public
Agency of the RS for Entrepreneurship and Foreign
Investments (Japti )
- restructuring of agencies
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SLOVENIAN INDUSTRIAL POLICY
Strengths of the current measure
Support for the establishment of business links /
value chains / clusters
- a current measure at the level of
support for the projects by partners
(development-investment project, DCSE)
- entry in the CE project (SEE) (Project
under Slovenian Technology Agency)
- integration on an international level support for international activities
- involvement in international activities
(wood, automotive, ICT)
Weaknesses of the current measure
- no clear concept
- general support for international
activities of partnerships is not present
- the relationship more on the principle
of ‘exploitation’ of clusters by the state
Opportunities for future
- a unified, integrated portal
- not new upgrade and integration (such
as the Scottish Enterprise)
- a unified brand (such as the Scottish
Enterprise)
- establishing a clear
relation/partnership as with the
chambers (RISS)
- systematic support for
internationalisation
- support for creating clusters in modern
areas, shown also for example by the
Modern Industrial Policy
- upgrading support to DCSE and
clustering in these areas.
Threats
- misunderstanding of the concept
- cross-sectoral contents related to
internationalisation
- closeness to the concept of
chambers/associations, which means maintaining
of soft infrastructure
- the unwillingness of the politics to accept the
clusters as an interlocutor for development
planning - an area which can be covered by
Innovation Slovenia
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SLOVENIAN INDUSTRIAL POLICY
ANNEX 4: Orientation of Slovenia in the areas of technology and industry
Table 1: Overview of highlighting individual industrial sectors and fields in the Republic of Slovenia
Slovenia's
Development
Strategy - SDS
Orientation of
Slovenia (areas,
sectors or
technologies)
1
2
3
4
5
6
7
8
9
10
11
12
13
Information and
Communication
Technologies (ICT)
/ Electronic
Communications
and Information
Technology38
Pharmaceuticals
and biotech. /
Health and life
science39
Logistics40
New materials and
nanotech.41
Process technol. /
Complex systems
and innovative
technologies /
Complex systems,
cybernetics, innov.
tech. of process
management42
Environmental
technologies /
Environment and
construction43
Energy and
alternative energy
sources / Tech. for
a sustainable
economy (energy
efficiency)44
Automotive ind.
Wood-processing
industry
Chemical industry /
Ch. technologies
Electrical and
optical equipment /
Electrical industry
and electronics45
Processing
technologies
Industrial design as
a separate segment
Total resources
approved 20092011
Development
groups of the
Competitivene
ss Council
National
Research,
Development
and Innovation
Programme NRDIP 20062010
Programme of
measures to
encourage
entrepreneurship
and competitiveness 20072013
Internationalisation
Programme
2010-2014
The report
on the
results of the
identification
of main
priority
development
topics - Slo.
Technology
Agency Technology
Platforms
Centres of
Excellence
- CoE
77,553,986
Competence
Centres - CC
44,736,292
Develop-ment
Centres of the
Slovenian
Economy DCSE
179,581,338
38
Main issues in CC: application platforms and interfaces, network systems and services, narrow areas in the action programme: hardware, software and applications;
telecommunications, networks, interoperability; safety and security; priority development issues: service science and infrastructures for integration, e-business and e-content
39 Main issues in CC: food and health, biomedical engineering; A programme of measures includes also: technologies in the field of medicine; priority development issues:
biotechnology and genomics for health; safe food
40 Priority development issues: logistics, automation and management systems
41 / Modern (new) synthetic metal and non-metal materials and nanotechnologies; narrow areas in the action programme: ceramics and composites, polymers, special fluids,
multimaterial systems, materials with special properties, foils and layering, nanotechnologies; priority development issue: functional materials
42 Priority development issue: technological development of integrated advanced products, knowledge, manufacturing technologies and tools
43 / Technologies for a sustainable economy (sustainable construction); the priority development issues: sustainable buildings; technologies of ensuring and rational use of water;
recycling industrial and municipal waste;
44 Main areas in the action programme: acquisition, production, storage, distribution and utilisation, especially in the field of renewable and alternative sources and energy
efficiency; priority development issues: solar energy; biomass and biorefineries, hydrogen technologies; intelligent electrical grids
45 Priority development issue: diode pumped light sources
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SLOVENIAN INDUSTRIAL POLICY
Table 2: Development instruments oriented in sectors and technologies in the 2007-2013 financial
perspective
Challenge / key
technological areas*
Key industrial
sectors*
NOT CoE - low-carbon technologies
1
2 Environmental-energy
challenge and wise use
3 of natural resources /
Technology for the
efficient use of energy
4
and renewable energy
5 sources, photonics
6
7
8
Energetics
Sustainable
construction
Woodprocessing
industry
Automotive
industry
11
Health and ageing
12 population /
Biotechnology,
13 biomedical engineering
Pharmaceutics
and
biotechnology
Estimated value of cofinancing (CoE: 20092013, CC: 2010-2013,
DCSE: 2011-2015)
EUR 9,989,739
CC SURE - advanced systems of
efficient use of electrical energy
EUR 6,399,999
DC Preko - generating energy
resources from waste
EUR 2,000,000
DC ZEL-EN - renewable and
sustainable energetics
EUR 6,008,128
DC Energija
9
Sustainable mobility /
Technologies for
10 sustainable mobility
Development instruments in the
financial perspective 2007-2013
CC TIGR - sustainable and innovative
construction
EUR 10,934,216
EUR 6,399,800
DC INTECH - LES - inter-disciplinary
technologies and products in the
scope of wood manufacturing
EUR 17,231,536
RACE KOGO - DC of the economy of
Koroška
EUR 3,514,054
DC 31 - centre of creative furniture
industry
EUR 4,912,979
DC of the automotive industry - Si.Eva
EUR 19,999,970
CoE CIPKeBiP - for Integrated
approaches in chemistry and biology
of proteins
CoE EN-FIST - NMR - for research in
biotechnology, pharmacy and
materials physics
CC BRIN - for biotechnological
development and innovation
EUR 8,407,000
EUR 9,970,013
EUR 6,387,750
14
DC Farma GRS - pharmaceutical and
economic centre of Slovenia
15
DC IN.Medica - for innovative medical
systems and treatment methods
EUR 4,999,999
16
CoE BIK - for biosensors,
instrumentation and process control
EUR 10,000,000
17
Electrical
industry and
electronics
KET - Key Enabling
18 Technologies:
nanotechnologies,
micro- and
19
nanoelectronics,
ICT
advanced materials,
20 advanced manufacturing
and process technologies
21 (biotechnology and
CC BME - biomedical engineering
EUR 10,600,384
EUR 6,399,863
CC CLASS - services supported by
cloud computing
EUR 6,395,380
CC OPCOMM - open communication
platform for service integration
EUR 6,398,000
DC for ICT, Kranj
DC for ICT Savinja, Žalec
EUR 12,096,618
EUR 8,021,819
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SLOVENIAN INDUSTRIAL POLICY
Challenge / key
technological areas*
photonics covered in the
24 challenges above)
Key industrial
sectors*
Electrical
industry and
electronics
25
27
28
Advanced
materials and
nanotechnology
Development instruments in the
financial perspective 2007-2013
DC NELA - for electrical industry and
electronics
DC MASPOS - for modular and
adaptive signal processing transmitter
systems
CoE POLIMAT - polymer materials and
technologies
CoE NAMASTE - advanced nonmetallic materials with technologies of
the future
CoE NIN - nanoscience and
nanotechnology
DC for new materials Jesenice
30
DC NMPT - for new materials, drives
of nautical and SAS technologies
RC SIMIT - research centre for modern
materials and innovative technologies
31
DC eNeM - new materials
development centre
29
32
Advanced
manufacturing
and process
technologies
Estimated value of cofinancing (CoE: 20092013, CC: 2010-2013,
DCSE: 2011-2015)
EUR 19,901,553
EUR 9,983,302
EUR 10,000,000
EUR 9,417,264
EUR 9,803,463
EUR 7,104,059
EUR 14,530,000
EUR 16,705,000
EUR 11,037,721
KCSTV - CC for advanced technologies
of management
EUR 6,355,500
CoE SPACE.SI - Space: Science and
technologies
EUR 9,966,506
EUR 301,871,615
* All areas of technology and industrial sectors are interconnected and there is no clear division between them. These
technologies also support other industrial sectors; therefore, only key sectors of applications are stated within the
framework of specific technologies.
Source: MEDT
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SLOVENIAN INDUSTRIAL POLICY
Table 3: Areas and forms of integration in the field of technology development
Areas
Centres of
Excellence
Advanced materials
and nanotechnology
CoE NIN
CoE Polimat
CoE Namaste
Biotechnology
Coe CIPeBIP
Coe BIK
Coe EnFist
CC BMT
CC BRIN
DC Farma GRS
DC SE Slovenia
Advanced
manufacturing and
process technologies
CoE Space
CC STV
DC transmitter
systems
DC automotive
industry
DC wood industry
(3)
DC electronics
TP STV, cluster
ACS, TC Teces,
Tekos
CC OpCOMM
CC Class
DC Gorenjska
DC Savinjska
TP ICT, TN ICT
CC SURE
CC TIGR
DC Energetics
Pomurje
DC Sp. Posavje
DC Šaleška
TP SG, cluster,
TC
ICT
Technologies for
sustainable
development
CoE NOT
Competence
Centres
Development
Centres
Other forms
DC for new
materials MS,
Jesenice, Podravje,
Zasavje
Cluster, TC, TP
Plasttechnics
Source: Slovenian Technology Agency, 2012
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SLOVENIAN INDUSTRIAL POLICY
ANNEX 5: The proposal of system solutions for corporate restructuring
PROPOSED MODEL FOR THE TIMELY RECOGNITION OF PROBLEMS AND OPPORTUNITIES AND FOR A TIMELY
RESPONSE
(1) The starting point
The credit crunch - Slovenian companies are facing deficits of the loan resources to finance
investments and working capital.
Bank policies in restructuring their portfolio are passive. Banks do not have suitably qualified
teams to assess the effectiveness of investments in companies.
‘High financial leverage’ - Slovenian companies have an average 5-10% lower value of
permanent capital in the balance sheet and consequently higher burden arising from
indebtedness (primarily short-term liabilities) compared to the EU average.
The capital structure and burden on assets do not enable companies to fund their ongoing
operations and development investments.
(2) Assumptions
Political consensus for systemic interventions in the process of economic restructuring also in
companies where the Republic of Slovenia is not yet the owner.
Public resources for financing are provided - in the first phase, a certain amount of public funds
would need to be provided for management and the active role of the state.
The manager must have constant sources, independent of the state budget.
It must also ensure a clear and active role of SID bank in the process.
(3) The objective
Active engagement of the state in the process of restructuring companies in Slovenia through
the reorganisation of existing institution(s) where the state provides an adequate amount of
financial resources.
Subordinate objective:
A target group consists of large companies which, due to their multiplicative effects on the
entire Slovenian economy, can be defined as companies of “national importance” and are not
necessarily only companies in which the state already has ownership or indirect ownership:
1) ‘good’ companies with growth potential that currently have problems with capital
inadequacy and need restructuring.
Active search for suitable state investment through a transparent programme for the
comprehensive restructuring of companies in order to increase competitiveness intended for good companies which currently have problems with capital inadequacy
and need restructuring, while respecting the ‘PRIVATE INVESTOR’ principle.
2) companies in difficulty which are treated according to EU guidelines.
To establish a ‘24/7’ system for companies in difficulty which are treated according to
the guidelines.
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SLOVENIAN INDUSTRIAL POLICY
ANNEX 6: Review of SIP guidelines 2014-2020
Con.
No.
1.
CHAPTER GUIDELINES
OF SIP
RESPONSIBLE
MINISTRIES
3.1.1. Reorganisation and specialisation of legal institutions for accelerated and effective
operation and execution, and efficient judicial and insolvency procedures.
3.1.2. Consistent implementation of the adopted Resolution on Legislative Regulation
(adoption of regulations according to the guidelines for Better Legislation) and the
implementation of assessments of legislation impacts on the economy in all
government departments - ‘SME test’.
3.1.2.
Consistent execution of the Action Plan for the Implementation of the Small
Business Act.
MJPA
4.
3.1.2. Systematic implementation of the Government Programme for a 25% reduction in
administrative barriers. This involves making existing legislation simpler and
transparent (eliminating duplication, consistent interpretation etc.).
MEDT, MJPA,
all portfolios
5.
3.1.2. Establishing a Point of single contact (PSC) through which businesses can obtain all
relevant information, and electronically complete the necessary formalities and
procedures.
3.1.2. Efficient, transparent and cost-effective public procurement. The state acts as a
cost-effective and development-oriented (green) contracting authority which
ensures professionalism and ethics in doing business in all stages of the procurement
and the execution of projects. In this context, it is also important to promote green
and innovative procurement for the integration of experts in the field and science in
joint pilot and demonstration projects. Introducing quality criteria and expanding the
environmental criteria in public procurement procedures.
3.1.3. Renovation and modernisation of labour policy and legislation to increase the
mobility of the workforce and safety of employment.
3.1.3. Realisation of activities to simplify the conditions for practising professions and
trades - better regulation of professions, trades and activities.
3.1.3. Adaptation of education and training systems to the needs of the economy, to
ensure their own knowledge base also in accordance with the economy, taking into
account the development guidelines and projections, such as the expected increase
in demand for green jobs. In this context, the promotion of professional and
vocational education; updating school programmes to be aimed at obtaining
practical knowledge and experience; the inclusion of education for sustainable
development; strengthening the qualifications and competencies of individuals, for
example for teamwork and the use of systemic, critical and creative thinking; training
for shortage occupations; encouraging lifelong learning; promoting socially
responsible entrepreneurship and the involvement of young people in
entrepreneurial activities; the introduction of mechanisms for the transfer of
knowledge between generations and transfer of expertise from abroad to Slovenian
companies, etc.
3.1.3. Promoting the employment of older and young workers - programmes for the
employment of older workers and incentives for first employment of young people.
3.1.4. Establishing an efficient and transparent tax environment with carefully considered
amendments to tax legislation (e.g. in the direction of green tax reform).
3.1.4. Promoting growth and developing companies with tax relief for investments and
R&D. Examining the impact and effect of these measures on the economy.
3.1.4. Examining the introduction of other types of tax relief and incentives to support
innovation.
3.1.4. The examination of taxation measures which can contribute to reducing illegal work
and the grey economy.
MEDT, MJPA
2.
3.
6.
7.
8.
9.
10.
11.
12.
13.
14.
MJPA, MEDT,
all portfolios
MEDT, MJPA,
all portfolios
MF, MEDT,
all portfolios
MLFSA
MLFSA,
MJPA, MEDT
MESCS,
MLFSA,
MEDT
MLFSA
MF
MF
MF, MEDT,
MESCS
MF, MLFSA,
MEDT
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15.
16.
17.
18.
19.
20.
21.
22.
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OF SIP
RESPONSIBLE
MINISTRIES
3.1.5. Smart and development-oriented environmental legislation that is in accordance
with EU Directives (focusing on a materially-efficient and low-carbon economy,
taking into account short-term costs and burdens of industry). In this context, the
elimination of unnecessary administrative burdens arising from approximately 500
regulations relating to the environment.
3.1.5. Ensuring a long-term energy strategy, with commitments to provide the economy
with a competitive and sustainable energy supply and achieve optimum energy
import dependence. In this context, the adoption and implementation of the
National Energy Concept.
3.1.5. The optimum organisation of companies dealing with energy activities for their
development and for a reliable, sustainable, cost-competitive and environmentally
acceptable supply of energy to the the Slovenian economy, and for transparent trade
in electricity and natural gas. Attention will also be devoted to distributed
generation, by taking into account the production prices of such energy and
environmental savings.
3.1.5. Incentives for energy efficiency (EE) and renewable energy sources (RES). In this
context, also the establishment of the framework to implement the programme to
reduce energy consumption in accordance with the adopted commitments of the
Republic of Slovenia in the energy-climate package to 2020 (implementation of
obligations in accordance with the Energy Efficiency Directive 2012/27/EU and the
Action Plan of EE).
3.1.5. Special measures for energy intensive industries which are an important
component of the value chain, in order to prevent the migration of jobs and capital,
which can be caused by reducing carbon emissions (‘carbon leakage’). Energy
intensive industries exposed to international competition demand competitive
energy markets (access to energy and raw materials at competitive prices and under
competitive conditions in the world market, etc.).
3.1.5. The establishment of e-commerce in the field of construction in order to optimise
processes and eliminate administrative barriers. The most important information on
the spatial situation needs to be collected in one place, standardised and easily
accessible in the framework of spatial information system.
MAE
3.1.5. Shortening procedures for issuing environmental permits. Includes the
reorganisation of institutions and the personnel responsibility for the effective
management and implementation of administrative procedures. At the same time, it
is necessary to redefine the role and responsibility of civil society regarding the
implementation of administrative procedures (environmental permits, spatial
positioning of objects, etc.).
3.1.5. Preparation of projections (priority programme) of major demonstration/pilot
MAE, MISP
MISP
MISP
MISP
MISP
MISP
MISP, MEDT
projects of ‘smart’ objects/systems (intelligent buildings, traffic, health-care,
communities, cities) with the participation of stakeholders (regions, municipalities,
industry, financial structures), based on Slovenia's Development Strategy, NDP and
Operational Programmes for the new financial perspective of the EU for 2014-2020.
23.
24
3.1.5. Determining the priorities for preparing, implementing and planning public
MISP
investment in energy, road and railway infrastructure, and accelerating the
preparation of national spatial plans and the implementation of ongoing, unfinished
and planned projects. To implement the planned measures effectively, it is necessary
to connect state bodies and engage engineering staff for the timely design and
technological qualification of Slovenian industry for the long-term infrastructure
investment programmes (2nd track, 3rd development axis, hydroelectric power plant
on the middle Sava, the South Stream pipeline etc.).
3.1.5. Establishment of financial mechanisms and business environment for the
MISP, MEDT
implementation of current and new construction business at home and abroad
(insurance, warranties, consortia). Integration of Slovenian industry, engineering and
consulting services in investment planning and construction of facilities.
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3.1.6. Reorganisation and responsible autonomy of implementing institutions, in order to MEDT
improve their operations and support services, to increase efficiency and eliminate
duplication in the implementation of measures in the areas of research,
development, innovation and entrepreneurship. Maintaining their mission and
upgrading their operations to support businesses in effective integration into the
EU financial perspective for 2014-2020 and the withdrawal of EU funds.
3.1.6. Further developing and upgrading supporting entities of the entrepreneurial and
MEDT
innovative environment (VEM entry points (All in One Place), university and business
incubators, technology parks, technology centres, technology transfer offices, etc.),
mainly in the form of the development, complementariness and upgrade of services
provided by these entities. In this context, also improving access to the capacities of
the existing R&D infrastructure at home and abroad, and promoting technology
transfer to accelerate the commercialisation of research and development results.
27.
28.
29.
30.
31.
3.1.6. Transferring activities to individual implementing entities from the private sector
(chambers of commerce, associations, clusters, etc.), according to the principle of
public-private partnership.
3.1.7. Supporting growth and development and expansion into foreign markets through
debt finance (financial engineering instruments: interest rate subsidies, microcredit,
microguarantees, loans and mezzanine loans, guarantees etc). In this context, also
the coordinated functioning of financial institutions (mainly the Slovene Enterprise
Fund and SID Bank).
3.1.7.
Further development of equity funding sources (strengthening and efficient
operation of seed and venture capital funds), and the development of other modern
forms of financing, including public-private partnerships.
MEDT
3.1.7. Promoting entrepreneurship for young people, women, social entrepreneurs and
micro-entrepreneurs.
3.1.7. Supporting the growth and development of companies - for example, with
MEDT,
MLFSA
MEDT,
MESCS
vouchers for quick access to funding for a particular purpose.
32.
33.
34.
35.
36.
37.
38.
3.1.8. Comprehensive promotion of creativity, entrepreneurship and innovation (CEI),
and entrepreneurial culture as positive values (for example, through public media,
participation in events, business meetings and trade fairs in the field of
entrepreneurship and crafts, etc.); promotion of CEI also in companies and informing
on good practices.
3.1.8. Including contents from the area of CEI at all levels of formal education (from
kindergarten to university) and training teachers and mentors to introduce
pedagogical methods to promote CEI skills.
3.1.9. Effective, depoliticised control and corporate governance in accordance with the
OECD Guidelines on the Corporate Governance of State-owned Enterprises.
3.1.9. Transparent withdrawal of the state from the economy by selling full or partial
ownership stakes in state-owned enterprises in which the the Republic of Slovenia
sees no strategic interest, with an important criterion being also the possibility of the
long-term development of the company.
3.1.10. The formation of priority areas and measures for the promotion of social
responsibility in accordance with the United Nations guidelines on human rights (‘UN
Guiding Principles’).
3.1.10. Supporting projects that promote the formation and exchange of good practices in
the field of social responsibility in companies. In this context, the promotion of
mentor and investment participation of socially responsible and social enterprises,
and the support of investments with a social impact.
3.1.10. Promotion of corporate social responsibility by considering social responsibility in
MEDT
MEDT
MEDT
MESCS
MF
MF
MLFSA,
MEDT, MFA
MLFSA,
MEDT, MFA
MEDT
the allocation of resources through public tenders.
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40.
41.
42.
43.
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OF SIP
RESPONSIBLE
MINISTRIES
3.2. Coordinated implementation of SIP and RISS - Research and Innovation Strategy of
Slovenia 2011-2020.
3.2. Study and evaluation of taxation measures which lead to the easier and faster
introduction of new companies to the market.
3.2. Encouraging the establishment of new innovative companies and companies with
high growth potential. In this context, promoting the integration of companies with
systems of mentors and business mentors.
MEDT,
MESCS
MF
3.2. Promoting the integration of companies, especially SMEs, with academic
institutions. In this context, the promotion of existing and establishment of new
innovative groups (clusters, technological networks, technology and development
centres, etc.), aimed at networking between companies and research, consultancy
and international organisations and organisations of higher education, in order to
share knowledge and experience, transfer technologies, introduce new business
models, create new business opportunities and establish new development links.
3.2. Promoting research and development in companies by recruiting and training
MEDT
researchers and developers, promoting the mobility of highly qualified staff, by
creating and disseminating interdisciplinary development groups in companies and
promoting employee innovation.
MEDT
MEDT,
MESCS
44.
3.2. Promoting development activities and technological investments in companies
primarily through non-refundable sources of financing.
MEDT
45.
3.2. Supporting non-technological innovation and longer-lasting elements to achieve
values (intangible assets: intellectual property rights, process and organisational
innovation, new business models for the introduction of high-tech solutions to the
market, to increase the material efficiency of enterprises and for social
entrepreneurship, and innovative methods for the internationalisation of companies
on the basis of joint investment of knowledge, technologies and capital).
3.2. Supporting the participation of Slovenian companies in international projects as
well as the implementation of international development links. Offering
information, advice and help (search for partners/consortia) with integration into
EU programmes, especially in Horizon 2020.
MEDT
46.
47.
48.
MEDT,
MESCS
3.3. Promoting research and development activities and investments in priority
MEDT
technology and industrial areas that address social challenges, in accordance with
the concept of smart specialisation. In this context, in particular:
- Promoting various forms of connections between companies and institutions of
knowledge (high-education, research and consultancy organisations) in priority
technology and industrial areas that show potential and national-economic effects
(horizontal and vertical integration, which covers the entire value chain, to
accelerate the commercialisation of new products and services).
- Review and evaluation of the results of previous development instruments aimed
at technology areas and industrial sectors (CoE, CC, DCSE), and based on the
analysis of the results of the decisions to upgrade instruments.
- Adoption and implementation of action plans on the initiative of the economy for
individual areas where certain problems exist (for example: Action plan ‘Wood is
beautiful’ - to connect wood-processing industries) or where it is necessary to make
systemic changes for the introduction of breakthrough technologies (for example,
electro-mobility - necessary amendments to legislation, infrastructure solutions).
3.3. Promoting the transition to a green economy by promoting innovation and the
MEDT, all
entry of new green products to the market and by considering impacts on the
portfolios
environment (so-called green indicators: share of EE, RES, recycling, reducing the use
of hazardous substances and discharges) in the allocation of resources through
public tenders.
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49.
3.3.
50.
3.4.
Implementation of systemic measures to promote the wider use of environmental
and energy-efficient devices/products and services, for example by:
- Enforcing the Ecodesign directive, energy labelling of household appliances,
European environment label, etc. - Encouraging and promoting voluntary initiative of
industry to employ the best environmental management practices, with the
European Directive for the Eco-Management and Audit Scheme (EMAS), ISO14001, Improving standardisation procedures and certification schemes.
RESPONSIBLE
MINISTRIES
MAE, MEDT
MEDT, MFA
Promoting the internationalisation of business. In this context, in particular:
- connecting companies for joint entry to foreign markets, - consulting on specific
opportunities in foreign markets, - finding potential partners, - education on
internationalisation, - supporting international business networking, - joint
appearances at trade fairs, - business delegations, - information and support for
companies in foreign markets, especially outside the EU, - the effective functioning
of economic diplomacy in order to improve the support for Slovenian companies
abroad,
- active participation in the common EU trade policy to ensure multilateral trade
agreements for the effective penetration of companies to new expanding markets,
- co-ordinated direction of the economy to third target markets.
51.
52.
53.
54.
55.
56.
3.4. Promoting foreign direct investment in order to promote knowledge and technology
transfer and the integration of Slovenian companies (suppliers) in global value
chains.
3.4. Promoting the use of industrial design in the economy and promoting the
development of products and services with their own trademarks and SQ brands for
their appearance in final markets.
3.4. Promoting tourism in accordance with the Slovenian Tourism Development
Strategy (sustainable tourism development, promoting Slovenia as a trademark and
tourist destination).
3.4. The implementation of state aid to rescue and restructure companies in difficulty,
based on the AGRRACD act.
3.4. The development of systemic solutions for the early identification of problems and
opportunities and for responses for companies which can be defined as ‘companies
of national importance’ according to their impact on the entire Slovenian economy,
regardless of current state involvement in ownership.
3.4. Promoting restructuring to improve the competitive position of enterprises by
promoting the introduction of new business models, organisational and financial
restructuring, the improvement of business processes, etc. In this context, support
for training to implement socially responsible corporate restructuring and facilitate
people's adaptation to change.
MEDT
MEDT,
MESCS
MEDT
MEDT
MEDT
MEDT,
MLFSA
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ANNEX 7: Approximate amount of financial resources for the implementation of SIP guidelines for
2014-2020
The tables below show the approximate financial resources needed to implement the SIP guidelines
in the 7-year period of the next EU financial perspective. It is anticipated that more than two-thirds
of the planned resources will be obtained in the context of the European Cohesion Policy (mainly
from European funds for regional development and human resources). It should be noted that the
assessment does not include the financial impact of the so-called soft measures to improve the
business environment (systemic, organisational and administrative measures), as well as specific
measures by portfolios which are evident from other strategic planning documents (e.g. incentives
for EE and RES, measures in the fields of education and the labour market).
Table 1: Assessment of financial resources for the implementation of SIP guidelines for 2014-2020
by SIP chapters
Assessment of financial resources by SIP
chapters
3.1. GUIDELINES FOR IMPROVING THE
BUSINESS ENVIRONMENT
3.2. GUIDELINES FOR STRENGTHENING
ENTREPRENEURSHIP AND INNOVATION FOCUSING SUPPORT ON NEW, INNOVATIVE
AND GROWING COMPANIES
3.3. GUIDELINES AS A RESPONSE TO SOCIAL
CHALLENGES
3.4. GUIDELINES IN THE FIELD OF ACTIVITIES
FOR THE LONG-TERM DEVELOPMENT OF
INDUSTRY
TOTAL
Assessment of total Explanation
resources 2014-2020
EUR 610.5 million The greatest share of funds are comprised of
refundable sources of financing for companies
(estimates do not include the financial
consequences of so-called soft measures to
improve the business environment, measures for
RES and EE and measures in the fields of education
and the labour market, which are evident from
other strategic planning documents)
EUR 447 million This refers to horizontal measures which support
innovation and encourage the growth and
development of companies
EUR 273 million This refers to oriented measures for developing
priority technological and industrial areas
EUR 328.9 million This refers to activities in support of
internationalisation, FDI, tourism, industrial design
and restructuring
EUR 1,659,400,000
Table 2: Assessment of financial resources for the implementation of SIP guidelines for 2014-2020
according to objectives
Assessment of financial resources
Assessment of total Explanations
according to objectives (connected to
assets 2014-2020
budget objectives, NDP)
1. Ensuring a competitive business
EUR 48.5 million These are measures for the supportive
environment and faster growth and
environment, promotion and support for
development of businesses (specific
integration
objective C1360)
2. Improving access to affordable sources of
EUR 596 million These are refundable sources of financing and
financing to support the development and
subsidies for target groups
growth of companies at all stages of
development (specific objective C1352)
3. Positive impact on sustainable economic
and social development (specific objective
C1356).
EUR 102,9 million These are measures in the area of corporate
restructuring, corporate social responsibility,
industrial design, positive impact on the
environment
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SLOVENIAN INDUSTRIAL POLICY
4. Promoting innovation and corporate
investment in research and technological
development (specific objective C1440)
EUR 608 million These are measures for promoting R&D activities
and investment
OTHER OBJECTIVES
EUR 304 million These are measures for increasing exports, FDI,
tourism
TOTAL
EUR 1,659,400,000
76