development report 2012 - UMAR

146 Development Report 2012
Indicators of Slovenia’s development
Gross domestic
expenditure on
research and
development
The share of gross domestic expenditure on R&D
(GERD) grew further in 2010, totalling 2.11% of
GDP. This result was mainly attributable to real
GERD growth, as well as, partly, a higher number of
reporting units in the Slovenian business sector 1 and
modest GDP growth in 2010. GERD totalled EUR 745.9
m, having increased by 11.6% in real terms (56.7% in
the 2005–2010 period). In 2010, Slovenia exceeded
the EU average for the first time on record, by 0.11
p.p., given that real GERD growth in the EU as a whole
lagged significantly behind (by 9.5 p.p.).
The share of the business sector in the funding of
GERD grew somewhat in 2010. The business sector
increased R&D investment by 12.3% in real terms,
while its share in the funding of GERD rose to 58.4%,
by 0.4 p.p. Business sector expenditure as a share
of GDP also increased in 2010, to 1.23% of GDP or
by 0.15 p.p. The business sector remains the main
recipient of funds from abroad, even though its share
declined (2005: 57.4%, 2010: 47.5%). The share of the
government sector in the funding of GERD shrank
somewhat, while the shares of the higher education
sector and foreign funds remained unchanged (see
figure); in real terms, all sectors increased investment
in R&D. The government sector slowed real growth
in R&D expenditure relative to 2009, in contrast to
the higher education sector, which accelerated it
markedly.
electronic and optical equipment (9.8%), electrical
equipment (8.0%) and motor vehicles, trailers and
semi-trailers (6.8%). Enterprises from service activities
claimed much less tax relief on R&D investment;
within that, enterprises providing knowledge-based
services 4 accounted for a significant share, nearly one
fifth. Additional regional relief on R&D was claimed by
178 taxpayers (2009: 164, 2008: 195) who met special
conditions in terms of development level. Although
the volume of claimed regional relief rose by close to
a fifth, to EUR 11.8 m, it was still by a solid tenth lower
than in 2008 and remained concentrated on a slightly
lower number of eligible entities than the basic relief
on R&D.
Expenditure on R&D remains confined within the
sectors of funding, which also affects cooperation
and the transfer of R&D achievements from the
public research sector to the business sector.
Confined, one-way financial flows from the aspect of
R&D funding, and as a consequence, closed research
sectors impact the interest for cooperation and reflect
in ineffective transfer of R&D results between the
public 5 and private research sectors. Data on sources
of funds for R&D expenditure reflect a high level of
sectoral self-financing, as in 2010 as much as 93.0% of
business sector expenditure was passed back to the
same sector (2005: 91.7%). The situations is similar for
public sector funds (2010: 70.1%, 2005: 89.2), but the
results for the business sector improved in the past
two years. The EU average for 2009 6 was 87.1% for
public sector expenditure (2005: 86.0%), and 94.8%
for business sector expenditure, transferred back to
the same sector. In 15 Member States, this share was
even higher than in Slovenia, while it was lowest in
Latvia (82.4%).
The volume of tax relief on investment in R&D
nearly doubled in 2010, reaching the highest level
thus far. A total of 491 taxpayers claimed tax relief on
R&D investment 2 in 2010 (2009: 418, 2008: 483). After
the shrinkage in the previous year, 3 the volume of tax
relief grew by 91.8%, to EUR 93.6 m. The total amount
of claimed tax relief was nearly 50% higher than
in 2008. Much as in previous years, the bulk of tax
relief on R&D investment was claimed by taxpayers
in the manufacturing sector (77.0%), of which the
most were in the manufacture of pharmaceutical
raw materials and preparations (34.3%), computers,
1
The number of reporting units covered increased by 57
enterprises contributing 4.5% to business sector expenditure.
2
Introduced in 2006 based on the Corporate Income Tax (OG RS,
No. 117/06, 56/08, 76/08, 5/09, 96/09 and 43/10).
3
In 2006–2010, the amount of claimed tax relief on R&D
investment declined only in 2009 (by 22.0%).
4
Information and communication (SCA 2008 – J), financial and
insurance (K), and professional, scientific and technical activities
(M).
5
Including the government and higher education sectors.
6
The last year for which data for most Member States are
available.