development report 2012 - UMAR

40 Development Report 2012
Development by the priorities of SDS – Efficient use of knowledge for economic development and high-quality jobs
people has been recorded for the second year in a row.
In Slovenia, age-related drop in participation is much
faster that in the EU, which can indicate that there is a
problem of accessibility for old people. The participation
rate of old people in the 55–64 age group stood at 7.5%
in the second quarter of 2011; Slovenia lags behind
the rate recorded in the Netherlands (8.2%), where the
overall adult participation in lifelong learning (16.7%) is
comparable to Slovenia. There has been no improvement
in life-long learning participation rate of low-skilled
adults during SDS’s implementation. A discrepancy in the
participation rates of low-skilled and tertiary graduates
in Slovenia is the biggest in the EU and even increased
in 2010 (the most recent data). Higher participation of
old and low-educated people could contribute to their
greater employability and longer work activity. Following
the expiry of the Resolution on the Master Plan for Adult
Education in the Republic of Slovenia until 2010, no
strategic document to define policies and programmes
in this area has been drafted.
The total public expenditure on education 87 in Slovenia,
expressed as a percentage of GDP, is relatively high.
Public expenditure as a share of GDP exceeded the EU
average of 5.07% in 2008 (the most recent international
data available), which can be attributed to a high education
participation rate and the manner in which education
is funded. In 2009 (the most recent data for Slovenia)
it increased (by 0.51 PP) to 5.7%; this correlated with a
substantial drop in GDP and was also due to a real terms
increase in public expenditure on education. In response
to an increased number of children in kindergartens
there was a substantial increase in public expenditure
on pre-school education. Significant growth was also
recorded at tertiary level and was related to additional
jobs, provision of funds to eliminate wage disparities and
funding of development tasks and equipment. Despite a
gradual decrease in the area of transfers to households
or support to pupils and students observed within the
structure of public expenditure at all levels of education,
public expenditure remains above the EU average.
If expressed as a percentage of GDP, expenditure on
education exceeds the EU average; if expressed per
participant, it falls far behind. Expenditure on tertiary
education amounted to 1.21% of GDP in 2008 (the most
recent international data available) and was above the EU
average of 1.14% GDP. A drop below the EU average 88 in
expenditure per participant is attributable to a very high
87
The total public expenditure on education includes all
budget expenditure at the state and municipality levels on
formal education of young and adult people. It includes direct
public expenditure on education institutions and transfers to
households (scholarships, meals subsidies, travel expenses,
accommodation and text book costs, etc.). Financial data
for Slovenia are collected according to an internationally
comparable methodology using a UOE questionnaire (a joint
UNESCO, OECD, Eurostat questionnaire).
88
See the expenditure on educational institutions per participant
indicator.
participation rate of young people in tertiary education.
The share of public expenditure on transfers to tertiary
education is well above the EU average. The proportion
of private expenditure on tertiary education is below the
EU average 89 and has seen a decreasing tend in recent
years, caused by a falling share of part-time students
and increasing enrolment in second-level programmes,
which are free of charge for full-time students.
2.2. Research, development,
innovation and use of
information-communication
technologies
Investment in R&D reached the highest level to date
in 2010. Despite the crisis, R&D expenditure continued
an upward trend after 2007 and amounted to EUR 746
million in 2010, representing 2.11% of GDP 90 . Slovenia
thus exceeded the EU average of 2.00% for the first time;
last year, EU experienced a stagnating trend in R&D
expenditure on GDP. Following Portugal and Estonia,
Slovenia recorded the most substantial growth in R&D
investment in GDP (nominally by 46.6%) among EU
Member States in the 2005–2010 period. This resulted
from increased investment by business and public
sector and represented a solid foundation for improving
long-term economic competitiveness. In 2010 business
sector increased its share in total R&D investment
to 58.4%, but did not reach the peak 2008 level. The
extent of R&D tax relief 91 claimed by companies in 2010
grew over the previous year. As in previous years, the
biggest tax relief beneficiaries were from manufacturing
industries; in 2010 they were primarily pharmaceutical
companies, computer and equipment manufacturers,
electronic and optic equipment manufacturers and
automotive industry. Service sector companies use
these reliefs 92 to a much lesser extent; in 2010, most
of these reliefs were granted to companies providing
knowledge-based services (professional, scientific and
technical services and information and communication
services). According to the provisional data, government
budget appropriations for R&D in Slovenia increased in
nominal terms and accounted for 0.6% of GDP in 2011.
89
It amounted to 16.2% in 2008 (20.9% in EU).
90
It should be noted that in 2008 the number of covered units
from business sector in Slovenia increased and that the 2010
GDP was lower than the 2008 GDP.
91
In 2010 general tax allowance increased from 20% to 40%; in lessdeveloped
regions, this increase depended on the development
gap measured in terms of average Slovenian per capita GDP and
ranged from 50% to 60% (previously 30% to 40%).
92
Innovation activities in service sector companies are focused
on strengthening specific knowledge and skills of staff rather
than on R&D investments. There is a need to expand expenditure
eligible for tax relief for R&D investment to broader innovation
investment, e.g. to investment in the development of human
resources and lifelong learning.