Slovenia launches plan to increase research FDI
In a bid to encourage more technology-oriented and capital-intensive foreign investment, the Slovene government has adopted a new programme on the stimulation of foreign direct investment (FDI) for 2005 to 2009. The main components of the new programme are: equal treatment of domestic and foreign companies, the reduction/elimination of administrative obstacles to employment, lowering entry costs for initial investments, and the aggressive marketing of Slovenia as a location for FDI. The European Commission's Key Figures show that foreign research and development (R&D) investment has decreased for the EU as a whole in recent years, while it has increased in Slovakia, the Czech Republic, Hungary, the UK, Sweden and Germany. Meanwhile, since the mid-1990s, the US has experienced a gain in its share of foreign affiliates' R&D spending. A large part of this shift towards the US came from EU companies having affiliates in the US. Between 1997 and 2002, R&D expenditure by US-based affiliates of EU manufacturing firms increased by 54 per cent in real terms. US firms, on the other hand, increased their R&D spending in EU-based affiliates by only 38 per cent. Slovenia intends to create between 1,000 and 1,500 jobs for every year of the new programme, and increase annual inflows to the equivalent of 1.0-1.5 per cent of GDP excluding acquisitions and privatisation. The majority of foreign capital inflow to date has been the result of acquisitions, but the aim of the programme is to encourage more technology-intensive investment. The government hopes that in addition to its practical assistance, the programme will also have symbolic importance - indicating to potential foreign investors the government's more committed approach to attracting FDI.
Countries
Slovenia