REPUBLIC OF SLOVENIA
MINISTRY OF ECONOMIC DEVELOPMENT AND TECHNOLOGY
February 6, 2013
Slovenian industrial policy - SIP
Main highlights
In the time of the financial and economic crisis that affected Slovenia even more than the
majority of the EU countries there is a need to strengthen the healthy core of the Slovenian
economy which is represented by the industry as the key generator of innovation, growth
and employment.
Industry in Slovenia:
- In narrow sense: manufacturing which contributes 20% of the total added value
(average in EU: 15%).
- More than a quarter of services is directly linked to industry and depends on it.
- It is estimated that for every 100 jobs created in industry between 60 and 200 new
jobs are created in the rest of the economy, depending on the industrial sector.
- 80% of all private investment in R&D comes from industry.
On average, Slovenian manufacturing has a higher contribution to total value added than
in the EU. While in the EU manufacturing contribution is around 15% of the total value
added, in Slovenia it is 20% (2011). In the framework of industrial policy we are not
concentrating only on manufacturing, but also on the connected/dependent services.
Altogether they represent about 50% of GDP. Industry is also the source of innovation –
80% of private investment in R&D is made by industry.
Other important data:
- Companies 2011: 130,000 companies, 99.8% SMEs, 700 large companies (mainly in
technological more advanced areas)
- Manufacturing 2011: 12.2% of companies, 36.8% of employed persons, 30.5% of
revenue.
- Most important in manufacturing: metal industry, pharmaceutical industry, production
of electric devices, production of motor vehicles, production of other machines and
devices, production of rubbers and plastic mass and chemical industry. Represent
more than 60% of added value in manufacturing and more than half of employees in
manufacturing.
- Gross added value per employee: about 36,000 EUR, 60% of the EU average.
The purpose of SIP is to set the priorities of development of industry and economy in a
broader sense for the next financial perspective of the EU – for the period 2014-2020. SIP
sets orientations which includes the list of measures for:
1. Improvement of business environment,
2. Strengthening entrepreneurship and innovation capabilities of economy,
3. Efficient response to societal challenges,
4. Activities for the long-term development of industry.
Vision of SIP is that it will create the conditions for constant restructuring of existing industry
into industry of knowledge and innovation for new, sustainable and qualitative jobs and a
greater inclusion into international flows of business through the improvement of business
environment, support of entrepreneurship and innovation and development of the
perspective technological and industry areas that respond to societal challenges.
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The main goal of SIP is to improve productivity (or the added value per employee) from 60%
to 80% of the EU average.
I.
IMPROVEMENT OF BUSINESS ENVIRONMENT
The main condition for the increase of the investment into technological and economic
development is the improvement of business environment.
Improving the business environment refers to the rule of law, administrative environment,
labour market and education system, tax environment, environmental, energy and land use
policy, a comprehensive business-innovation-supportive environment, access to finance, the
environment conducive to creativity, entrepreneurship and innovation, effective management
of state-owned enterprises and corporate social responsibility.
II.
STRENGTHENING ENTREPRENEURSHIP AND INNOVATION
Another important area refers to strengthening entrepreneurship and innovation which is
the key driver of productivity, employment, and economy growth. The role of the
government in this regard is to improve the framework conditions for innovation and
entrepreneurship through horizontal measures, which means above all:
to promote networking between the public research and education sector and the
economy,
to promote development activities and technological investments in companies,
to promote non-technological innovation,
to encourage employing researchers and developers in businesses and
to encourage mobility of highly skilled people.
Given the fact that the most innovative and growing companies contribute the most to
achieving the objectives of higher value added per employee and increase of employment, a
special attention is given to them.
III.
RESPONSE TO SOCIETAL CHALLENGES
To achieve economic recovery and development objectives horizontal measures will not be
enough. Therefore, it is necessary to find new sources of growth and development, based on
smart specialization, which takes into account previous investments, capabilities and
competencies. New sources of growth could be found in responding to social challenges. Thus,
SIP on the basis of challenges, opportunities, achieved competencies, capabilities, and
natural resources, defines priority areas within which development of technologies and their
application in industrial sectors will be encouraged.
The existing economic sectors provide the foundation for smart specialization. However, as
stated by the European Commission, the traditional view of the once homogenous and
independent national industrial sectors is not the adequate basis for development policy
anymore. In the updated Communication on the industrial policy the Commission sets six
priorities of development that are not related to the industrial sectors, but the technologyrelated challenges. In line with this, the Slovenian industrial policy on the basis of the following
challenges: climate and energy, sustainable mobility, food and human health and the potential
for the key enabling technologies, sets the following priority technological areas:
environmental technology, sustainable mobility technology, biotechnology, nanotechnology,
advanced material, micro and nano-electronics, advanced manufacturing and processing
technologies, as well as the key industrial sectors.
These priority areas within the challenges are:
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The challenge
Environmental and
energy challenge and the
efficient use of natural
resources based on
sustainable production
and consumption
Priority technological fields *
Key industrial sectors *
Energy / "Smart" systems
Environmental technologies (technologies for
efficient use of energy, renewable energy
technologies, technologies for increasing material
efficiency ...)
Sustainable construction
Sustainable mobility
Technologies for sustainable mobility
Automotive industry
Biotechnology and other related technologies
Pharmaceutical industry
Agro-industry and sustainable
production
Sustainable Tourism
Manufacturing (especially wood-working
industry, metal, electrical industry and
electronics)
Chemical and process industry
Food, human health and
ageing
food
ICT
Nanotechnology, micro-and nano-electronics,
Electrical industry and electronics
The potential of KETs photonics, biotechnology, advanced materials,
key enabling technologies advanced
manufacturing
and
process New materials
technologies
Metal - manufacturing, engineering and
tool making
NOTES:
* All areas of technology and the industrial sectors are intertwining and there is no clear
dividing line between them. Industrial sectors do not relate to the definition according to the
Nace, but they are understood in a broader sense.
Source: Ministry of Economic Development and Technology
Connecting stakeholders in priority technological and industrial areas is crucial for the
further development of the economy.
IV.
ACTIVITIES FOR THE LONG-TERM DEVELOPMENT OF INDUSTRY
SIP also defines activities for long-term development of industry which include the promotion
of internationalization to benefit from the effects of globalization, the promotion of industrial
design, and the promotion of restructuring companies in all stages of development to
accommodate the rapid changes that we are witnessing in the world today.
THE EU FUNDS IN THE EU FP 2014-2020
National financial resources are increasingly limited; the effective absorption of European
funds is, therefore, a key prerequisite for achieving the development goals. Thus, at the end of
the SIP document the main EU financial resources for the implementation of development
policies in the next financial perspective are presented. These resources are COSME, Horizon
2020 and the EU Cohesion Policy.
The Horizon 2020 is dedicating more than half of its budget to solving societal challenges and
to the key enabling technologies. These are also important areas of funding under the EU
Cohesion Policy.
FINANCIAL RESOURCES TO IMPLEMENT SIP 2014-2020
The approximate amount of financial resources for the implementation of SIP measures in the
7-years period (2014-2020) is shown in Annex 7. It is anticipated that more than two-thirds of
1.65 billion EUR will be taken from the EU Cohesion Policy (mainly from EU funds for regional
development and human resources).
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CHANGES ARE MADE BY COMPANIES
SIP will contribute to the strengthening of the economy competitiveness and to the promotion
of structural change; however we need to be aware of the fact that companies are the main
agents of change and development.
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