INTERNATIONALISATION POLICY IN SLOVENIA/PODRAVJE REGION STATE OF AFFAIRS Prepared by: dr. Amna Potočnik, Maribor Development Agency Proofreading: mag. Borut Jurišić, Maribor Development Agency November, 2017 Project INTRA: Regional State of Affairs | 1 / 147 TABLE OF CONTENT INTERNATIONALISATION POLICY IN SLOVENIA/PODRAVJE REGION .......................... 1 STATE OF AFFAIRS .......................................................................................................... 1 0. INTRODUCTORY REMARKS ........................................................................................ 9 1. PORTRAIT OF THE REGION ........................................................................................12 1.1 GENERAL INFORMATION .................................................................................................13 1.2 ECONOMIC GROWTH ......................................................................................................13 1.3 VALUE ADDED ...............................................................................................................14 1.4 RESEARCH AND DEVELOPMENT ......................................................................................14 1.5 INNOVATION ..................................................................................................................15 1.6 INWARD FDI ..................................................................................................................15 1.7 EMPLOYMENT ...............................................................................................................17 1.8 ENTERPRISES ...............................................................................................................17 1.9 ENTERPRISES IN PODRAVJE REGION...............................................................................19 2. INTERNATIONAL TRADE.............................................................................................20 2.1 EXPORT COMPETITIVENESS OF SLOVENIAN ECONOMY .....................................................20 2.2 GLOBAL VALUE CHAINS ..................................................................................................24 2.3 TRADE BALANCE ...........................................................................................................25 2.4 TOP SLOVENIAN EXPORT MARKETS ................................................................................28 2.5 EXPORT TO INTRA COUNTRIES ......................................................................................35 2.6 EXPORT TO EX YUGOSLAVIAN COUNTRIES ......................................................................35 2.7 MAIN EXPORTING GOODS ...............................................................................................36 2.8 EXPORT TO GERMANY, ITALY, AUSTRIA, CROATIA AND CHINA ..........................................40 2.9 EXPORT BY PRODUCT GROUPS .......................................................................................41 2.10 PODRAVJE EXPORTS ...................................................................................................44 2.11 BEST 20 SLOVENIAN EXPORTERS .................................................................................45 2.12 SLOVENIAN IMPORTS ...................................................................................................47 2.13 IMPORTS PER REGION ..................................................................................................48 3. INTERNATIONALISATION ENVIRONMENT ................................................................50 3.1 LEGISLATIVE FRAMEWORK, STRATEGIC DOCUMENTS AND UNMET OBJECTIVES ...................51 3.2 TARGETED MARKETS .....................................................................................................54 3.3 FINANCIAL SOURCES FOR INTERNATIONALISATION ...........................................................56 Project INTRA: Regional State of Affairs | 2 / 147 3.4 OP FOR THE IMPLEMENTATION OF THE EU COHESION POLICY IN THE PERIOD 2014 – 2020 ..........................................................................................................................................57 3.4.1 Programme description .........................................................................................58 3.4.2 Expected impacts ..................................................................................................59 3.4.3 Selected investment priority: Developing and implementing new business models for SME, in particular with regard to internationalisation. ................................................61 3.4.4 Specific objective compatible with Investment priority: Enhance International competitiveness of SME .................................................................................................61 3.4.5 Actions to be supported under the investment priority ...........................................62 3.5 IMPLEMENTATION BY MID OF 2017 ..................................................................................65 3.6 MAIN NATIONAL/REGIONAL STAKEHOLDERS ....................................................................66 3.6.1 THE SHORT SCREENING OF REGIONAL STAKEHOLDERS` ROLES IN INTERNATIONALISATION ..........................................................................................................................................68 4. CONDUCTION OF INTERVIEWS WITH STAKEHOLDERS AND SURVEY IN SME ....70 4.1 PRELIMINARIES .............................................................................................................70 4.2 METHODS FOR COLLECTION OF THE DATA .......................................................................70 4.3 DATA PROCESSING AND ANALYSIS ..................................................................................71 5. SURVEY IN SME: RESULTS ........................................................................................73 5.1 DESCRIPTIVE STATISTICS ...............................................................................................73 5.1.1 Typology of participating SME and their main economic activity ............................73 5.1.2 Development focus of SME ...................................................................................74 5.1.3 E-commerce ..........................................................................................................76 5.1.4 Technology readiness level ...................................................................................77 5.1.5 Benefits of the public funds ...................................................................................79 5.1.6 Benefiting from financial instruments .....................................................................79 5.1.7 Strategy or internationalisation plan? ....................................................................81 5.1.8 Main reasons to go international ...........................................................................81 5.1.9 Degree of maturity .................................................................................................83 5.1.10 Management and personnel qualifications ..........................................................84 5.1.11 Type of activities on international markets ...........................................................84 5.2 INTERNAL BARRIERS ................................................................................................86 5.2.1 Shortage of funds to finance working capital .........................................................87 5.2.2 Product and Price Barriers ....................................................................................88 5.2.3 Lack of adequate production capacity ...................................................................88 Project INTRA: Regional State of Affairs | 3 / 147 5.2.4 Lack of managerial time ........................................................................................89 5.2.5 Shortage of HR .....................................................................................................90 5.2.6 Lack of qualified/trained personnel ........................................................................90 5.3 EXTERNAL BARRIER .............................................................................................91 5.3.1 Ensuring investments for internationalisation ........................................................94 5.3.2 Transparency of financing schemes ......................................................................95 5.3.3 Export administrative restrictions ...........................................................................96 5.3.4 Identifying business opportunities .........................................................................96 5.3.5 Finding strategic info .............................................................................................97 5.3.6 Ability to contact oversees partners .......................................................................97 5.3.7 IP protection ..........................................................................................................98 5.3.8 Collaboration with the intermediaries .....................................................................99 5.3.9 Obtaining own governmental support ....................................................................99 5.3.10 Reliable foreign representation .......................................................................... 100 5.3.11 Ability to overcome strong local competitors .....................................................