Projects / Programmes
Industrial Policy, competitiveness and entrepreneurship in the light of the European Union enlargement
January 1, 2004
- December 31, 2008
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
industrial policy, entrepreneurship, competiteveness
Researchers (11)
Organisations (2)
Abstract
Slovenia has reached 72% of GDP per capita of the European Union (EU) average as measured by purchasing power standard. As a transition country she expects that accession to EU will accelerate economic growth, which will enable catching up with the average level of development of EU countries. It is expected that Slovenia will achieve a higher growth than EU average in the next mid-term period. Up to now Slovenia has been succeeding in achieving a higher rate of growth tan EU average; the question is now whether she can increase the differential or the growth rate will slow down. In line with the Lisbon Declaration which states as its goal that Europe by 2010 will become the most dynamic and competitive economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion, these goals are at the same time also the goals of all present and future EU member countries.
The goals of the Lisbon Declaration can be achieved with a higher rate of growth, which means faster increase in employment and productivity. Modern growth theory emphasizes for developed countries the importance of knowledge, innovativeness and entrepreneurship for faster growth. Therefore the new industrial policy in EU stresses the acceleration of development of these factors as the key for the achievement of faster growth. Countries wishing to achieve faster development must endeavor for the development of cutting edge knowledge, which must be made readily available to business. This implies and increased effort for the improvement of education and research. Manufacturing must also become more innovative and every activity has to continuously introduce improved products, services and processes. The countries have to provide the conditions for such development. Furthermore, they have to develop entrepreneurial capabilities, support entrepreneurial readiness to take risk, and ambition to create new enterprises and stimulate companies to grow. It means that a positive attitude towards entrepreneurship and business in general has to be developed. The new industrial policy based on recent theoretical findings supports horizontal approach to the creation of the conditions for growth, It means that it does not favor individual sectors or enterprises bur creates a uniform framework in which enterprises and entrepreneurs can realize business initiatives and business opportunities. This requires the fulfillment of condition that knowledge, technology and finance are truly made available to all enterprises.
Industrial policy must also ensure that other policies contribute to industrial competitiveness. Competitiveness depends on all policies, which influence it, and in particular on competition policy, R&D policy, education policy, labor markets policy and environmental policy.
For the realization of the goals of Lisbon Declaration it is necessary to do research on which combinations of the above mentioned policies and which concrete instruments and measures of these policies will lead to the achievement of these goals. In the development literature it is now accepted that within the same socio-economic system countries achieve very different levels of competitiveness and different rates of growth depending on concrete combination of policies and measures (Stiglitz, 1994). Therefore, it is necessary to study the effects of past economic policy combinations on competitiveness and growth, compare them with the policies of comparable successful countries and suggest appropriate instruments and measures.
Significance for science
The contribution of the research group to the global knowledge is clearly demonstrated in its achievements concerning scientific publications and active participation at the conferences. Member of the research group have succeeded to get published 22 scientific journal articles, 12 of them indexed in the SSCI base, 62 professional articles, 33 scientific monographs and part of monographs and 15 professional monographs. Members have actively participated at 27 scientific conferences with referees' reviews and at 58 scientific conferences without referees’ reviews. They have also actively attended eight professional conferences. In total, they have published 216 scientific papers and 85 professional papers. The aforementioned data on publications indicate that the research group fully achieved goals, related to the contribution to the science, as envisaged in the submitted research plan. With regard to the contribution to the methodology, the research group (Sicherl) developed a new and original statistical method of measuring the stage of development (S- time distance). This method is a new and original scientifical concept and as such represents a supplementary method to the already well-known measures (such as statistical differences in a certain time or period and growth rates) in several areas of research. This concept of S-time distance has, as all generic measures, a wide range of areas of potential applications at the macro and micro level. In the research field of entrepreneurial dynamics the researchers concentrated on factors of success and failure of the entrepreneurial oriented organisations. This is one of the recent central research issues in entrepreneurship. When analysing the transfer of family businesses to the next generation, Glas discovered that many of these companies may face failure if the transfer is not adequately prepared. Drnovšek also contributed new findings into the knowledge on entrepreneurship. When she tried to identify factors that influence the persistence of the entrepreneur to stay in the business in spite of the failure, she found out that one of the key factors associated with the cognitive processes is self-efficiency, while among the factors associated with emotional processes, the key factor is passion. In an international research team she conceptualized and proposed a theoretical model of entrepreneurial passion and consequences of entrepreneurial effectiveness. Kotnik studied innovation as well as research and development activities of Slovenian companies. On the basis of production function estimates, she revealed doubts about the effective use of investment in the innovation process for increasing the added value created in these companies. The findings show that Slovenian companies are lagging behind other companies in more developed countries. In conducting sectoral studies (health, energy, telecommunications, water tourism) the researchers (Tajnikar, Hrovatin, Zorić, Mihalič) have applied the standard methodological tools and developed theoretical concepts. It should be emphasised that the research group is the only one that investigates the Slovenian economy on these grounds. Therefore, the results of these studies have without doubt contributed to the world knowledge in the mentioned fields. The research group is also among the pioneers in the Central-Eastern European and Southern-Eastern European countries. Some of the benchmarking studies (electricity and gas distribution) have placed the performance of the Slovenian firms into the comparative international context. The researchers have also been invited to contribute to the special issues of renowned journals addressing developments in the Central-Eastern and Southern Eastern Europe and to the international project groups. This clearly demonstrates that there is a lack of theoretical and empirical knowledge about this part of the world in these fields of research.
Significance for the country
From the Report on the results of the research programme it follows that the work and results of the research programme members had an important impact on the Slovenia’s development. The primary objective of the research programme was to find proper ways in which Slovenia can achieve an economic growth that would substantially exceed the EU average, implying the ambition of catching up with the most developed EU economies. Within this framework the research group focused on the analysis of: (i) development gaps, (ii) competitiveness factors with the emphasis on inventiveness and efficiency of firms, sectors and the economy as a whole, (iii) entrepreneurship and factors of the entrepreneurship process, and (iv) individual sectors recognised as important for economic development of Slovenia. Scientific results on the behaviour of individuals as well as the chosen sectors provide a solid basis for the decision making in companies, shaping economic policies, proposing legislation and establishing supporting institutions, and creating a stimulative entrepreneurial environment. The following accomplishments of the research group have to be particularly emphasised: 1. Members of the research programme were invited to participate in the projects and debates on the economic development of Slovenia. As a member of government project on structural reforms Vahčič was appointed as the head of the group for competitiveness and innovativeness. Three members of the research programme were invited to participate at the “Discussions on Slovenia’s future” hosted by the President of the Republic of Slovenia. The central research thesis of the research programme, that the establishment of competitive and stimulating environment for entrepreneurship is the main condition for achieving high economic growth, became a pillar of Slovenia’s economic policy. 2. The work of the group members was crucial for forming the proposal on the Act on Supportive Environment for Entrepreneurship. Each year members of the research programme participated in selection of the fastest growing firms in Slovenia (Selection of Slovenia’s gazelle). The invitation is seen as recognition for the accomplishments in the scientific field of entrepreneurship and competitiveness. 3. Group members transfered their research achievements to the educational programmes at all three levels (undergraduate, graduate and doctoral level of studies) as well as to specific courses related to the content of the research programme. The group initiated development and implementation of the new educational programmes in entrepreneurship, health economics, public sector and tourism, which serve as a cannel of knowledge transfer into the practice. The group also introduced new approaches to education (designer or d-school project). 4. Gorup members participated in the research on international competitiveness of Slovenia, which is a part of the two most recognised competitiveness benchmarking studies worldwide carried out annually by IMD and WEF. A member of research programme Sicherl developed a new scientific method of S-time distances to analyse the position of Slovenia in comparison to the EU-15. This approach could also serve as a starting point for proposing measures that would narrow the gap between Slovenia and the most developed EU member states. 5. Members of the research programme also provided important contributions concerning the behaviour of specific firms and sectors: health sector, energy sector, water sector, telecommunications and tourism. The studies offer valuable recommendations for the economic policy making that would result in better performance of investigated companies and sectors. Analyses and dilemmas of public sector are presented annually at the Business conference on public sector, organised by Hrovatin and Tajnikar, which managed to attract members from ministries, public sector companies and other stakeholders (interested public).
Most important scientific results
Final report,
complete report on dLib.si
Most important socioeconomically and culturally relevant results
Final report,
complete report on dLib.si
