1. Horizontal incentives for R&D projects of SMEs
2. Technology programmes in selected technological fields
3. R&D infrastructure and development of human resources
4. Integration of the economy into the international R&D area

1. Horizontal incentives for R&D projects of SMEs

Great importance should be attached to incentives supporting the development of new technologies in SMEs as the most dynamic parts of the economy. The European Commission is aware of this, since its New Innovation Action Plan highlights the need for incentives in R&D in all fields. This measure is even more important for Slovenia, because it is lagging behind Europe in terms of the share of innovative SMEs in the economy (the figure for Slovenia is two times smaller than the EU average).

Part of the Ministry’s horizontal incentives is thus designed for R&D projects in SMEs strategically geared towards the core activity or product and core business services. The R&D phase may be conducted by the company itself (if it is competent and registered for that purpose with the Ministry of Higher Education, Science and Technology) or by a public research institute, technology centre or any other company with complementary knowledge useful for successful realisation of the project, commercial launch of a new product, knowledge or technology.

Incentives will be geared towards a smaller number of projects (50 – 70) while trying to sustain a relatively high amount of the approved subsidy. The companies would otherwise receive only symbolic subsidies which do not stimulate enterprises or research institutions. It is envisaged for the subsidies to cover between 25 % and 50 % of eligible R&D costs.

2. Technology programmes in selected technological fields

The majority of the Ministry’s incentives are geared towards development priorities or technology programmes. These programmes are designed to develop knowledge and concrete development in individual sectors or fields, in particular activities of technologically highly competent companies operating globally. Technology programmes are prepared in co-operation with a group of researchers and representatives from companies dealing with the field addressed by the technology programme, and the competent ministry. The aim of this consultation process is to identify key selected technological fields within the programme which will be useful for the Slovenian economy in the following three to five years. The Ministry or Technology Agency will later issue a call for proposals for technology programmes with more precisely defined themes (partial foresight). These can be supplemented annually. Researchers together with enterprises, or enterprises themselves if they have an adequate research potential, may submit their proposals for this call. The projects in these proposals (developmental and applied) must be interdisciplinary, comprehensive and on a suitable scale so that they actually generate significant technological progress in the Slovenian economy or significantly increase technological requirement and added value per employee in participating companies.

In this way the public research sphere becomes significantly more closely linked to the needs of the economy, and directs its research and scientific work towards the fields relevant for Slovenia’s development. It also enables the engagement of social sciences for themes relevant for the economy. Thus one of the main objectives of the Research Activity Act from 2002 is attained and a concrete contribution made by science and researchers to the objectives of the Lisbon Strategy. A few years ago Finland introduced detailed programmes, which it carries out through their National Technology Agency – TEKES.

The eligible costs for technology programmes range from 25 % to 50 %. They are conducted over a period of three to five years. Following this, the programme undergoes an external evaluation. If necessary, the programme may be announced again in a modified form and with supplemented themes.

3. R&D infrastructure and development of human resources

Research and development infrastructure and development of suitable human resources are of extreme importance for successful co-operation between the public research sphere and enterprises, and primarily for increased participation of SMEs in innovation.

In the light of this, the system of technology centres has been promoted and systematically developed over the last 10 years. Technology centres are independent legal entities established by several companies for the purposes of R&D in a specific field or branch, as well as for the provision of R&D equipment subsequently made available to companies for their development projects. If a company is understaffed, the personnel from the technology centre provides services for them.

There are currently 25 active technology centres operating in the fields ranging from textile processing, footwear, toolmaking, and electrical engineering, information and safety technologies. In 2005, a call for proposals for technology centres has been issued by PHARE. It will facilitate the purchase of modern R&D equipment for technology centres. In 2005, emphasis will be placed on service expansion, integration into the European Research Area and an increase in the number of participating SMEs.

The activities will also focus on strengthening the human resources potential and infrastructure, in particular in those fields that enable the participation of researchers from public and private organisations, and innovative companies in the technology platform programmes of the European Union (technology networks and other networking programmes).

4. Integration of the economy into the international R&D area

Slovenia is successfully joining the international R&D programmes of co-operation. These encompass the following three types of projects:

• bilateral scientific and technological co-operation;
• EUREKA (Europe’s oldest technology development programme);
• 6^th and 7^th EU Framework Programmes for R&D.

Increased presence of companies and themes relevant for the Slovenian economy (brain gain) should be provided under bilateral scientific and technological co-operation.

Slovenia has been participating in EUREKA since 1994. There are currently approximately 50 running projects, ranking Slovenia second best among countries collaborating within the EUREKA initiative (when compared on the basis of successful projects and adapted to the country size). Dr Mihelič is the chair of Central and Eastern European R&D Action group (CEERDA), a EUREKA body.

In order to fully exploit the potentials of the EU membership, it is necessary to continue providing incentives to companies wishing to participate in the 6^th and 7^th Framework Programme. In the past two years, good results were achieved in attracting SMEs to participate in the Framework Programme. On average the participation of companies is only slightly above 20 %, which implies that Slovenia is experiencing brain drain. However, in the near future it will be important to provide legal assistance to participating companies when it is necessary to protect the achieved results. This is of extreme importance for collaboration in large international consortiums.