Discover Slovenia’s green, creative and smart competitive advantages and seize its favourable working environment for your own business endeavours.

With sustainability at its heart, it doesn’t come as a surprise that Slovenia’s environmental committment plays a fundamental role in its drive to promote green technology, corporate social responsibility and a culture of transparency. One of the companies working towards a greener future is Aquafil. Aquafil produces a groundbreaking nylon alternative derived from waste products such as ghost nets, rugs and carpets. Denis Jahić Managing Director at AquafilSLO, says Slovenia’s green credentials and skilled workforce make the country an obvious choice for the company’s operations.

Many investors are already tapping into Slovenia’s inherent advantages – its natural riches, a favourable geostrategic position, backing from strong research institutions and technology parks, business accelerators and, above all, an informed and motivated population.

Slovenia’s economy is thriving. The country has become an attractive place for investment and cross-border trade, with its highly skilled talent pool undoubtedly constituting the backbone of the country’s business development.

Attributing much of its success to first-rate talent is the heating solutions firm KRONOTERM. Bogdan Kronovšek, the company’s Co-owner and Managing Director, lists an excellent geographical position in Europe, good infrastructure, a quality education system and the government support as what has enabled the heat pump producer to scale to new heights of success. The hard-working, innovative, technically as well as linguistically skilled employees contribute to KRONOTERM’s goal to increase the number of people with access to modern, energy-saving and environmentally-friendly heating. The entire region can learn a lot from KRONOTERM, which has been named one of the 19 companies leading Europe’s heating sector out of fossil fuels with their breakthrough heat pump technology.

Dušan Olaj, the Founder and General Manager of Duol, agrees that Slovenia’s talent pool is essential for success: “Slovenia’s focus-oriented and free education system allows companies to choose from a diverse pool of professions and skills. Cooperation between universities and industry allows for a wide range of student grants, supporting the correct level of education of your future employees.” Duol, world-renowned for designing, manufacturing and installing inflatable halls, is one of the many Slovenian companies that push the boundaries and empower other entrepreneurs and corporates alike to take on ambitious projects that require technological know how themselves. Central to supporting entrepreneurship, internationalisation, foreign investment and technology is SPIRIT Slovenia Business Development Agency that remains available for any enquiries your business may have.

The challenge of providing Europe and the wider world with energy security is as pressing as ever and it is reassuring to know that Slovenia possesses a range of innovative businesses that play a vital role in achieving the green energy transition.

And what makes Slovenia a competitive place to do business? Uroš Salobir, Director of the Strategic Innovation Department at ELES (operator of Slovenia’s electric power transmission network), believes it is the strong support from the government, industry and, in particular, the citizens. »Employees are future-oriented and the culture is characterised by adaptation to change.«

Boris Šajnović, Head of Project Management Office at Iskra – is another Slovenian company working towards green goals within the sustainable transportation sector, and it finds the country »a truly good pilot environment to test and demonstrate innovative projects with the full support of local people, government and positive business climate.« He adds the environment for innovation is supportive, strict intellectual property laws are in place and there is a good network of public agencies that help businesses at every stage of growth.

Business and investors looking for new opportunities are invited to get in touch with SPIRIT Slovenia Business Development Agency which offers strategic advice and operational support. The Agency provides practical information and advice on various business opportunities such as individual investment locations, Slovenian suppliers, specific industries and markets.

Find out more about doing business in Slovenia at www.Sloveniabusiness.eu.

The Minister of Labour, Family, Social Affairs, and Equal Opportunities, Luka Mesec, opened a conversation on how to work smarter and better by stating that the role of the state has changed in recent times. In his view, the solution to the challenges facing society lies in cooperation between the state and other spheres, as well as the promotion of social dialogue. He cited Scandinavia as an example of a region where this approach has been successful, noting that the state’s role is to enable such dialogue, rather than dictate it. The Minister also addressed the issue of the four-day working week, acknowledging that no country can exist in isolation in today’s globalized world, and that international competitiveness must be taken into account when making policy decisions.

According to Tine Kračun, the Director of the Institute for Strategic Solutions (ISR), the key to navigating the current crisis and emerging victorious lies in the ability to adapt, cooperate, and innovate. Speaking on the potential for integration within the Adriatic region, Kračun emphasized the importance of the economy and the integration of the region into the European Union. “The well-being of individuals is closely tied to the health of the economy,” Kračun stated. “As such, we see great opportunities for Slovenia in the integration of the Adriatic region within the EU.”

According to Dr. Jure Stojan, Director of Research and Development at the ISR, the current state of the economy is in a period of uncertainty, characterized by volatile market conditions. “Data shows that we are currently experiencing a period of economic fluctuations, with the prices of German producers experiencing a reversal, while remaining high but no longer at record-breaking levels,” said Stojan. He also highlighted that the current pressures on the economy are not just limited to the ongoing pandemic, but also include issues such as climate change and other conflicts. Stojan emphasized the need for swift action and adaptation in order to navigate these uncertain times, stating, “We must not rely on time, and must take proactive measures to address the changes that we ourselves are making to the economy.

Navigating Uncertainty: The Role of Innovation in Shaping the Future

As interest rates continue to rise after more than a decade of being stuck near or even below zero, companies are faced with the reality of limited government borrowing options. Domen Prašnikar, Director of the consultancy Valior, emphasizes the need for businesses to protect themselves and build resilience through the use of modern technologies and management strategies. Prašnikar stresses that innovation is key to adapting to the current uncertain environment.

Maja Krumberger, Director of the Slovenian Insurance Association, also highlighted the pressing issue of demography in Europe, with Slovenia ranking among the highest on the continent. “With an aging population and fewer active workers, we will rely less on pensions,” Krumberger said. “Insurance companies have responded by offering products that ease the burden on public healthcare systems.” Krumberger underscores the importance of collaborating with regulators and finding solutions that benefit society as a whole

In uncertain times, the role of innovation in shaping the future cannot be overstated. This was a sentiment echoed by Andrej Lasič, a member of the NLB board, who emphasized the challenge of demography in the region as a pressing issue that affects many areas. “Just a decade ago, the Slovenian economy was indebted to the extent of 40% of GDP. Today, it is indebted to the extent of 20% of GDP,” Lasič noted. “We can use credit for innovation and investment. In the current situation, Slovenian companies have an exceptional opportunity to make good use of the current turbulent times, as they are among the least indebted in Europe. Not just Europe, but even the world.”

He went on to highlight the importance of diversification, pointing out that the Slovenian economy is one of the most diversified in the world, which means it is not dependent on a single industry. Jože Bajuk, a member of the board of Petrol, concurred, stating that diversification is extremely important for large companies such as Petrol, as it does not limit companies territorially in terms of production and operations. Bajuk also emphasized the importance of innovation in applied technologies, saying, “We are a highly innovative company that runs its business efficiently. You can upgrade solutions and processes through purchases and acquisition of people who have come up with findings and innovative solutions. And new technologies coming to the market mean a new opportunity for us.”

As the world continues to grapple with the impact of technological advancements, the importance of innovation in navigating uncertain times has become increasingly clear. This was the focus of a recent round table discussion hosted by the Atlantic Monthly, featuring leaders from the insurance, energy, and banking sectors in Slovenia.

Aljoša Tušek, founder of Tushek Hypercars, noted that while multiple drive technologies will likely remain available, there will not be a definitive displacement of any one technology from the market. He emphasized the unique strengths of his company’s electric drive, which is 30% more efficient and 50% lighter than other electric drives on the market.

Valentin Hajdinjak, President of the board of DARS, highlighted the importance of innovative leadership, emphasizing the company’s focus on investing in employees and upgrading processes through digitalization. DARS has transformed from a highway builder to an active traffic manager, with a focus on ensuring greater traffic flow and safety for drivers.

Maja Krumberger emphasized the importance of a blended approach, noting that “only digital approach and with the help of artificial intelligence is not the right answer.” The round table agreed that demography, with Slovenia having one of the oldest populations in Europe, is a key challenge in the region, and that the right mix of human and digital approaches is crucial for success.

The conclusion was marked by a networking reception, featuring refreshments provided by Mercator and a selection of wines from Kleti Brda.

What are the initiative’s main goals?

Albania’s prime minister Edi Rama, North Macedonia’s prime minister Zoran Zaev and Serbian President Aleksandar Vučić have launched the initiative to implement certain principles of free movement of goods, people, services and capital in the three countries and to show how regional initiatives can be implemented.

The goal is to reduce or completely eliminate the waiting times for trucks at border crossings through an ICT system that defines all necessary documentation in advance, harmonizing and recognizing certificates and control mechanisms that ensure compliance with quality standards, stronger risk analysis and introduction of practical controls mechanisms that exist in the EU.

Another goal is to provide access to the labor market for all citizens of these three countries under identical conditions as the citizens of home country.

Citizens and companies within the Open Balkan initiative will get concrete benefits in the form of certain discounts on goods and services.

The aim is also to ensure the free flow of services and, at a later stage, capital within the Open Balkan. Finally, the goal is to create a union based on standards and principles of the EU before joining the EU, and thus enable companies from these three countries to have access to the EU single market in agreement with the EU.

The Open Balkan initiative creates a market of 12 million consumers where administrative barriers have been eliminated and a common economic area is established. What will the region gain from this economic space?

It will provide better business conditions, lower prices of goods and services due to fewer administrative barriers and thus making goods and services from the area more competitive in the global market.

The region will be more connected, providing companies better placement of goods and improving standards to be ready for the EU market. It will also enable full cooperation of institutions, bodies, agencies between these three countries, which will build greater trust both in the administration and at the political level.

At the moment, the biggest obstacles are the Western Balkans border crossings to the EU and long waiting times.

What are currently the biggest obstacles to doing business in the Western Balkans?

At the moment, the biggest obstacles are the Western Balkans border crossings to the EU and long waiting times, especially at the border crossings between BiH and Croatia and the border crossings between Serbia and Croatia and Serbia and Hungary.

Waiting times for trucks at border crossings are a problem we have been trying to solve for years. At the intraregional crossings, within the Western Balkans, after last year’s establishment of the so-called green corridors within CEFTA, waiting times were reduced to a tolerable level. We are trying to reduce them further, and several initiatives initiated by the Serbian Chamber of Commerce have been directed in that direction, both within Serbia and regionally.

Within the region, we would also like to see faster implementation of the Action Plan for the Common Regional Market. From an economic point of view, there are a number of additional costs that we believe can be avoided through mutual recognition of certificates accompanying goods, certificates of conformity, as well as more rational risk control at crossings within the region. In terms of services, all six chambers of commerce in the region want to see full liberalization of service provision, mutual recognition of licenses and the creation of a common market in this segment as well.

For this very reason, the Republic of Serbia, together with Albania and North Macedonia, launched the Open Balkan initiative, in order to remove the remaining barriers in mutual business. It is important for us to point out here that this initiative is also open to the remaining six economies of the Western Balkans, and we hope that they will join soon.

“Innovative ideas with high added value, which are essentially high-tech, green, sustainable, socially responsible, and digitally supported, lead to the creation of high-quality jobs, economic growth, global competitiveness and, last but not least, can provide answers to the most complex social and other challenges of humanity,” explains Tomaž Kostanjevec, PhD, director of SPIRIT Slovenia, the public agency that exercises programmes for promoting entrepreneurship.

In addition to talented individuals, access to capital is essential for the development of such ideas, throughout all stages of a company’s development. Global rapid growth often requires investments of millions of euros. “Banks do not usually finance such projects due to the high risk involved, so venture capital is key. Without start-up investment and access to capital, even the most promising ideas have little chance of coming to life,” says Kostanjevec.

INFORMATION, WORKSHOPS, IDEA ASSESSMENT, MENTORSHIP

One of the important roles in increasing the chances for good ideas to take off is played by SPIRIT Slovenia, a public agency under the auspices of the Ministry of Economic Development and Technology. The agency has been running several programmes to promote entrepreneurship since the very beginning of the creation of a supportive environment more than a decade ago.

SPIRIT Slovenia currently co-finances 21 innovative entities promoting entrepreneurship in all Slovenian regions. They provide information, workshops, business idea assessment and diagnostics, mentoring, and advice to innovative entrepreneurs, as well as accelerator programmes and competitions for best business ideas, activities to strengthen the entrepreneurial community and other related activities.

“The arrival of the corona has exposed many social structural weaknesses that were previously unconscious or more hidden. Overnight, it became even clearer how important are innovation, sustainability, green approaches, social responsibility, and adaptability to new circumstances. Companies have been forced to innovate to a higher degree, to think outside the box, to adapt their business models, and to digitize,” remarks Kostanjevec. He adds that start-up investments are important not only in stimulating and bringing about the innovation born in start-ups, but also in helping existing companies innovate and adapt their business models. This is where start-up investments can play an important role, provided, of course, that it is not about solving unpromising situations, but about newly discovered opportunities, says Kostanjevec.

SPIRIT Slovenia is also active in promoting women in entrepreneurship, and also provides direct subsidies for digitalization and international business.

FROM SLOVENIA TO THE WESTERN BALKANS

Entrepreneurial success requires a lot of support on different levels: at school, in acquiring knowledge, and in developing both creativity and an entrepreneurial mindset. Later on, when developing an innovative idea, mentors and advisors are essential. Companies need proper interlocutors, often with access to research equipment, capital, business premises, and other infrastructure. “Same as with top athletes, it is difficult for entrepreneurs to succeed on their own, which is why support is a must. Without the right support, there would be significantly less entrepreneurial success,” says Kostanjevec. He gives the example of how entrepreneurship is supported in the early stages by SPIRIT Slovenia. “We have two strong platforms. The first is the national SPOT system, which brings together a range of support services offering free help, information and advice to businesses.The second platform is SIO, which connects business and university incubators, accelerators, technology parks, and other environments that enable the creation and growth of new businesses.” More than 120 mentors and 200 business advisors are connected to SIO centres. Each year, they organise more than 600 workshops, lectures, startup weekends, informal meetings and other training events, supporting more than 100 entrepreneurs on their entrepreneurial journey. “We can proudly say that SPOTs and SIOs represent a solid foundation and a central infrastructure for the creation of new breakthrough entrepreneurial stories in Slovenia,” says Kostanjevec.

But SPIRIT Slovenia’s activity does not stop outside domestic borders. They are also actively involved in the entrepreneurial environment of Western Balkans countries. “We are aware that we should not operate in a bubble, but cooperate internationally. That is why we have strong links and cooperation with the countries of the Western Balkans. Not only at an umbrella level, but also at the level of companies, organizing delegations, visits, promoting international trade. It is important to underline the importance of sharing knowledge, good practices and connecting entrepreneurs. The Slovenian entrepreneurial ecosystem, including SPIRIT Slovenia, has the desire and ambition to see even more of this kind of networking in the future,” explains Kostanjevec.

“In the Western Balkans, we can provide good entrepreneurial support to innovative entrepreneurs, and we can also find niches where we are already leaders. We are very proud that Slovenia is becoming an European leader in the number of the so-called “hidden champions” – many Slovenian companies are world leaders in specific areas in high-tech and niche technologies,” says Kostanjevec, adding that this knowledge, case studies, technology, along with all the support services, are now becoming increasingly available in the Western Balkans, to entrepreneurs and to individuals striving to enter the world of entrepreneurship.

So far, SPIRIT Slovenia has helped numerous high-growth, globally disruptive companies take off through its SIO programme. Here are some of them:

• OLLO Audio, which is developing the Play2Me system for professional low-frequency audio listening outside a studio,
• VIAR, which is developing virtual and augmented reality solutions to enable faster training and the use of simulation in employee training, digitisation and better visualization of work instructions,
• Agitron, which develops and sells Agitron Smart Labels, digital labels based on e-paper technology that offer dynamic display of content on digital labels over several years without refilling.

Where does Slovenia rank on the ODI (Open Data Institute) scale?

The Institute for Strategic Solutions, together with representatives from key organizations in the Slovenian healthcare system, validated a report on the secondary use of healthcare data in Slovenia; matrices were checked and updated based on the initial research into the Secondary use of Health Data in Europe and Slovenia’s ranking was estimated. We also exchanged views and opinions on the challenges and opportunities facing the stakeholders. Statistics is the language of science and our purpose was to translate the numerical results into words and to provide additional insight into the minds and attitudes of local medical experts.

The informative value of the report validation brings to the fore local insight into specific key areas, namely – infrastructure, capacity, innovation, justice, ethics and inclusion. All of which a modern and credible healthcare system in Slovenia is dependent on. The report is intended for key decision-makers in the field of healthcare, enabling them to discuss and implement new initiatives that will enhance the Slovenian healthcare system and make for a better future. The baseline survey was prepared by the Open Data Institute (ODI) and published in September 2021. Its main contributor was Mark Boyd. The ODI is an independent and not-for-profit consultancy founded in 2012 by Sir Tim Berners-Lee and Sir Nigel Shadbolt. The ODI offers training, research and strategic advice to organizations seeking to explore the applied value of data. It works from its headquarters in London, as well as through its global network of start-ups, members, and hubs. Its research report, The Secondary Use of Health Data in Europe, is based on the importance of the secondary use of health data in improving and enhancing the European health system of the future. The main theme of the research is based on the idea that transparent and trustworthy data systems relating to healthcare are the key to helping countries respond to the many challenges facing society and the economy. The vital question is, how well equipped are the individual countries of the European Union prepared for the transformation?

Secondary Level of Use of Health Data in Europe

The concept of the secondary use of data includes the utilisation and processing of data collected in medical records for efficient patient treatment – both for primary use at the doctor-patient level as well as using anonymized data to identify phenomena and trends. It can also play a key role in the development and planning of the health system through various analytical approaches and the grouping of data into meaningful data sets.

The authors of the initial research focused on several key areas, namely, infrastructure, capacity, innovation, equity, ethics and inclusion, all of which a modern and credible health system is based on. The research also identifies the main components and indicators of success that are necessary to optimize the health systems of individual EU countries from secondary level use of health data. In addition to the data that is created at the patient-doctor level i.e. the primary, secondary or tertiary level of health care, there is also the health data that individuals create for themselves, for example, daily activities, such as exercise and sleep levels. This is also very significant, however, even more important is the awareness that the aforementioned data can be anonymized and combined in a way that serves to identify phenomena and trends for more effective treatment leading to increased accessibility to good quality and safe health services. This all culminates in a more sustainable health system. The results of the baseline survey showed that European countries can be classified and organized into the four main groups shown below.

According to The Secondary Use of Health Data report, the ODI classified the countries into four groups, each group occupies a quadrant on the graph above:

Leading Countries: Policy quality is strong and the implementation level is advanced. This category includes Austria, Belgium, Czech Republic, Denmark, Estonia, European Commission, Finland, France, Israel, Italy, Luxembourg, Norway, Portugal, Spain, Sweden, and the United Kingdom.

Energy-constrained Countries: Policy quality is good, but the level of implementation is less advanced. None of the countries under consideration meet these criteria.

Countries with Limited Vision: The quality of policy is weak but the level of implementation is more advanced. This category includes Croatia, Ireland, Germany, Netherlands, Poland, and Slovakia.

Less Prepared Countries: The quality of policy is weak and the level of implementation is less advanced. This category includes Bulgaria, Greece, Hungary, Latvia, Romania, Slovenia and Switzerland.

Local Insights

Individual interviews with key stakeholders who are part of the Slovenian healthcare system confirm the assessment attributed to Slovenia by the authors of the initial research into Secondary Use of Health Data in Europe. This is most noticeable in the absolute numbers we calculated as the statistical means of the ratings of the Slovenian experts interviewed. The overall assessment of the quality of Slovenian healthcare was 39 out of a possible 88, which is only slightly better than the ODI score, namely 38. Slovenian experts rated Slovenia better than the London researchers in the following categories – Infrastructure (23 versus 20 points out of a possible 52 points) and Justice (4 versus 2 points out of a possible 8 points). However, Slovenian experts rated Innovation worse than the London researchers (1 versus 4 points out of a possible 8 points). Slovenian experts also rated Ethics worse (6 points versus 8 points out of a possible 8 points), which is in line with international research in other areas. For example, in perceptions of corruption, domestic experts generally perceived more ethical slippages and violations than foreign observers. The Slovenian evaluators and evaluators from London gave the same ratings regarding the quality of Performance (both scored 0 out of a possible 4 points) and Inclusion (4 points out of a possible 8 points). As for the Implementation assessment, the overall assessment of Slovenian experts (46 points out of a possible 88 points) is only slightly better than the ODI assessment (44 points out of a possible 88 points). The average scores of Slovenian evaluators were better in the areas of Infrastructure (28 points versus 25 points out of a possible 52 points) and Justice (4 points versus 1 point out of a possible 8 points), but they were worse in terms of Innovation (3 points versus 4 points out of a possible 8 points), Ethics (7 points versus 8 points out of a possible 8 points) and Inclusion (4 points versus 5 points out of a possible 8 points). There were equal scores in the field of Capacity implementation (1 point out of a possible 4 points).

The openness to health data in Slovenia according to the ODI assessment compared to the average assessment of the Slovenian experts interviewed by the Institute for Strategic Solutions (ISR)

The state of implementation with regards to the openness of health data in Slovenia according to the ODI assessment compared to the average assessment of Slovenian experts

To summarise, there are encouraging signs that the Slovenian healthcare system is maturing in the context of effective use of the secondary level of data. However, the method in which the data is stored is still fragmented and a lot of work will be needed to get the secondary data infrastructure utilized to ensure an up-and-running strong and resilient healthcare infrastructure. Throughout the validation, Slovenian evaluators also expressed their own opinions regarding the international comparison, most specifically about which countries to look to in terms of good practice in the use of secondary data in healthcare, and identified Finland, Belgium, Sweden, Denmark, France and the Netherlands.

You Can Search Through Validation of Secondary Level of Use of Health Data Here.

Is there anything we can do about it?

Let’s look at the latest crisis in this sequence of global crises, the energy crisis between Russia and the European Union. Just when we thought it couldn’t get any worse, it has! The impact of the energy crisis has deepened the economic and financial insecurity of the European Union countries and has further burdened state coffers causing dramatic changes in governmental priorities all over Europe. If we thought that this was a problem that could be solved quickly without major repercussions, we were delusional. Due to sanctions imposed by the European Union against Russia, Russia has stopped supplying gas through the Nord Stream 1 gas pipeline, the predominant gas line for the European Union. It supplied 40% of natural gas to the EU. It has also led to scarcity and rising prices of raw materials, creating a shortage. A large number of European Union countries have begun to take urgent measures to reduce energy consumption, while also searching for alternative sources of gas supply and raw materials. Undoubtedly, difficult times are coming for society, as well as businesses.

However, these times can also create opportunities for new businesses. Why? Because challenging times create new opportunities. Everything from innovations and additional jobs with higher earnings. Through creative and innovative thinking, we can financially help not only corporates but also individuals, by providing additional jobs demonstrating that we are a society-friendly country. Happy workers, happy company, happy country!

But because we live in uncertain times, decision makers need a rudder to manage potential risks. Especially in business, it is difficult to predict the future. Nevertheless, it is expected to predict one. This is precisely why we present you Strategic Navigator.

What is Strategic Navigator?

Strategic Navigator is a tool Institute for Strategic Solutions (ISR) has created. It is a tool for decision makers to help manage business decisions in uncertain and unpredictable times. It supports strategic decisions necessary for successful navigation in the business field. Both in-depth and quick decisions.

With the help of the strategic navigator, we move the boundaries. The tool combines two key approaches for modern management: Big Data and Data Science. It provides an index of the information and skills required for successful management.

The final document of the strategic navigator consists of different scenarios for strategic decisions, stakeholders and also arguments, and is supplemented with a visual matrix and its qualitative interpretation. Scenarios are the key part on which the strategic navigator stands. Within the scenarios, it is possible to define indicators on the basis of which we can determine which of the scenarios is the one taking place in reality – whether we like the current scenario or not.

The strategic navigator gives a different and complementary view of what is happening in the world itself, which opens up new perspectives and thus a new consideration when making decisions. It offers a unique and fresh perspective for strategic decision-makers, grounded in original methodology and untapped and current data sources. At the same time, it detects intangible knowledge in the company and its mapping into a form suitable for making strategic and operational decisions.

For more information about Strategic Navigator please contact us at info@adriaticjournal.com.