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EIO Country Profile

2013

Eco-innovation in Slovenia

Eco-innovation in Slovenia 1

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development.

The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:

“Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”.

To find out more, visit www.eco-innovation.eu

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.


Eco-Innovation Observatory Country Profile 2013: Slovenia

Author: Danijel Crnčec

Coordinator of the work package: Technopolis Group Belgium


A note to Readers

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level.

This brief is available for downloaded from www.eco-innovation.eu/countries

Comments on this brief are welcomed and can be provided at www.eco-innovation.eu/slovenia


Table&of&contents&

Summary .............................................................................................................................................. 5!

1! | Introduction................................................................................................................................... 6!

2! | Eco-innovation performance ....................................................................................................... 7!

3! | Selected eco-innovation areas and new trends....................................................................... 10!

4! | Eco-innovation barriers and drivers in Slovenia ..................................................................... 12!

5! | Eco-innovation policy landscape.............................................................................................. 13!

6! | Good practice examples ............................................................................................................ 15!


Summary

Slovenia faces both numerous opportunities and challenges in the field of eco-innovation. On one hand, it is the third most forested country in Europe, abundant with natural capital, and endowed with a high level of biodiversity and rich natural habitats. On the other it faces environmental problems and above all economic and systemic problems that often hinder or even prevent the realisation of eco-innovative solutions.

In comparison with 2011 and 2012, Slovenia’s eco-innovation performance has changed significantly. While in 2011 and 2012 Slovenia ranked 10th and 7th respectively, achieving 115% of the EU average, in 2013 it ranked only 15th, reaching 77%. The largest reason for this decline in its Eco-innovation composite index has been due to on account of the socio-economic outcomes. With the update of several indicators which were based on 2008 data, the depth of the financial and economic crisis and its consequences for the eco-innovation sector became fully apparent, and were seen in vast declines in eco-industry export, turnover, and employment in circular economy. Moreover, Slovenia still has not succeeded in attracting any green early-stage investments. However, in the period between 2011 and 2013 material productivity doubled and eco-innovation related publications and patents are now on the rise along with total R&D personnel and researches, which indicates both that a body of knowledge on eco-innovations is being progressively developed, and that public awareness is on the rise.

In Slovenia the leading areas connected with eco-innovation remain climate and automotive technologies, efficient electric equipment and mobility, eco- and energy efficiency in buildings, and sustainable construction in cooperation with leading and innovative global companies. The R&D expenditures of these companies have been increasing, thus compensating for the government’s reduced R&D expenditure in 2012 and 2013. One promising eco-innovation area is the biomass-based industry. Ice storms that damaged (a minimum of) 40% of Slovenia’s forests in February 2014 should result in increased investments in the future.

A significant barrier for eco-innovation is the persisting financial and economic crisis, which is creating limited access to much needed funds. Furthermore, political changes, which have been taking place since 2011, have held back indispensable economic reforms as well as the adoption and implementation of a new political and legal framework for the fields of R&D and, in particular, for eco-innovations. Nevertheless, within the last two years a gradual shift in Slovene society towards a more sustainable lifestyle has occurred. Some important drivers in this process have been the non-governmental sector and several leading companies, which are promoting a green agenda. Along with the EU and its policies, this is also paving the way for greener and more eco-oriented policies for 2014-2020.


1 | Introduction

Slovenia faces numerous environmental and above all economic and systemic issues which pose substantial challenges for eco-innovation. First of all, the financial and economic crisis (Eco-innovation in Slovenia 2011; Eco-innovation in Slovenia: 2012 update) has resulted in the increased cost of capital, or even the lack of it, for new start-ups and small and medium enterprises (SMEs) – both for R&D and investments, which are needed afterwards in order to develop large-scale production and to market new eco-products and services. Due to the small size of the national market and the often conservative market behaviour of Slovene consumers towards new products and services, companies have to either invest extensively in the promotion of their innovations, or try to enter foreign markets directly in order to achieve large-scale production (Makovac, 2014), and this represents an additional (and occasionally excessively large) economic and financial challenge for SMEs.

Second, the field of eco-innovations still lacks a coherent and effective political framework (Eco-innovation in Slovenia 2011; Eco-innovation in Slovenia: 2012 update). The existing Resolution on the Research and Innovation Strategy of Slovenia 2011–2020 (RISS), which should regulate the fields of technological development, innovation, and cooperation between R&D and the private sector, and decrease barriers for the transfer of technology from R&D to the private sector, is still not being implemented. The most important new document regarding strategic development for the period 2014-2020, Slovenia’s Development Strategy 2014-2020 (SRS 2014-2020), along with its relevant implementation documents, has yet to be adopted. Furthermore, due to the financial crisis, the Slovenian government continues to decrease expenditures on R&D. Bulc (2014) also stresses the lack of political will to adopt more eco-friendly legislation and promote more environmentally friendly organisational structures and business models. Political and business elites, often intertwined, lack understanding and vision with regard to sustainable development, and this results in mismanagement and non-sustainable solutions, e.g. the construction of the controversial unit six at the Šoštanj Thermal Power Plant (TEŠ), which was even overshadowed by national and OLAF fraud investigations (Bankwatch, 2012; Zivcic, 2012).

Finally, the primary energy intensity of the Slovenian economy remains high – 227.7 kg of oil equivalent per EUR 1,000 in 2012, compared to 143.2 kg of oil equivalent per EUR 1,000 in EU-28 (Eurostat, 2014a) – and dependant on substantial imports of raw materials. Energy import dependency in 2013 was 51.3% (Government of Republic of Slovenia, 2013, 9). The Slovenian economy thus remains vulnerable to the volatility of international energy markets. Furthermore, greenhouse gas emissions remain above the Kyoto targets (Eurostat, 2014b), which is also due to several factors: an unfavourable modal split and the extremely high volume of freight transport, a downward trend in public passenger transport, and an above-average share of transport in total energy consumption (Eco-innovation in Slovenia 2011). Namely, the transport sector in Slovenia accounts for 50% of all GHG emissions (MKO, 2014b), so climate change performance “critically depends on reducing the impact of transport” (OECD, 2012). Overall, more emphasis should be placed on green growth, better implementation of environmental policies, better use of public and private finances, and a more vigorous promotion of eco-innovation (ibid.).


2 | Eco-innovation performance

The analysis in this section is based on the EU-28 Eco-innovation scoreboard (Eco-IS) for the year 2013. Eco-IS via its composite Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. Eco-IS is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes

Figure 2.1 EU28 Eco-innovation scoreboard 2013, composite index

Source: EIO, 2013

The overall Eco-innovation scoreboard composite index for Slovenia is 77 (Figure 2.1), placing Slovenia 15th in the EU-28 ranking of eco-innovative countries with Sweden, Finland, and Germany as the leaders. In comparison to the 2011 and 2012 Eco-innovation scoreboard, Slovenia’s composite index has changed significantly, and its position is lower. In 2011 and 2012 Slovenia performed above the EU average (index 109 in 2011 and index 115 in 2012) and ranked 10th and 7th in 2011 and 2012 respectively. However, in 2013 it regressed below the EU average (77) reaching a performance similar to 2010 (index 75) (though caution must be used when comparing 2010 and 2013 indices, as the basket of indicators used in 2010 was slightly different).

Nevertheless, a detailed view of the five components of the Eco-innovation composite index for Slovenia reveals several opposing trends. The Eco-innovation outputs component reveals, on one hand, that Slovenia still has no green early-stage investments and, on the other, that its government’s environmental and energy R&D appropriations and outlays (share of GDP) in 2013 despite the decreasing trend, performed better in comparison to the EU average than in 2012 (in 2012 it was 58% of the EU average and in 2013 it was 72%). Furthermore, the total number of R&D personnel and researchers (% of total employment) continues to rise and has reached 138% of the


EU average, compared to 108% in 2012, or 96% in 2011. Overall, Slovenia has reached 70% of the EU average in eco-innovation inputs and performed better in 2013 compared to 2012 (55%) and 2011 (68%).

Figure 2.2 Components of the eco-innovation composite index for Slovenia, 2013

Source: EIO, 2013

The Eco-innovation activities component of the composite index for Slovenia reveals that while there are no data on firms having implemented innovation activities aiming at a reduction of material or energy input per unit output, the number of ISO 14001 registered organisations (per mln pop) continues to rise (from 191 in 2011, and 195 in 2012, to 204 in 2013). However, compared to the EU average, this is still occurring at a lower pace, which has resulted in a slight decline of the component index from 119 in 2011, and 105 in 2012, to 98 in 2013. Nevertheless, the data indicate the trend of an increasing number of ISO 14001 registered organisations coming closer to the European pace.

The Eco-innovation outputs component of the composite index reveals that Slovenia remains significantly below the EU average in eco-innovation related patents (per mln pop), reaching only 34%. Still, Slovenia succeeded in increasing the number of patents from 27 in 2011 and 2012 to 34 in 2013. Slovenia also performed much better in eco-innovation related publications (per mln pop), achieving a remarkable rise in publications compared to the EU average, going from 58% in 2011, and 175% in 2012, to 193% in 2013. Eco-innovation related media coverage (per number of electronic media) decreased from 105% of the EU average in 2012 to 72% in 2013, overriding the above-mentioned positive trends and resulting in an Eco-innovation outputs component close to the EU average, reaching 99% (103% in 2012).

The Environmental outcomes component of the index reveals that Slovenia has not made any significant changes in 2013 compared to 2012 or 2011. It remained at 75% of the EU average (76% in 2012 and 74% in 2011). More closely, on one hand, material productivity (GDP/Domestic Material Consumption, €/kg) increased from 47% of the EU average in 2011, and 74% in 2012, to 84% in 2013, and GHG emissions intensity (CO2e/GDP) declined from 86% of the EU average in 2011, and 84% in 2012, to 80% in 2013. On the other hand, water productivity (GDP/Water Footprint, €/m3) remained at the same level, i.e. 60% of the EU average in 2012 and 2013, whereas energy productivity (GDP/gross inland energy consumption, €/toe) decreased from 87% of the EU average in 2011, and 84% in 2012, to 76% in 2013.

The most significant change occurred in the Socio-economic outcomes component of the index, which fell to 44% in 2013. There was a significant decrease in exports of products from eco-industries (from EUR 185 million in 2011, and EUR 342 million in 2012, to EUR 143 million in 2013) and in the share of eco-industry goods in total export (0.84% in 2011, 1.37% in 2012, and 0.57% in 2013). If Slovenia reached 136% of the EU average in 2011, and 159% in 2012, then it fell below


the average in 2013, reaching only 98%. The new data on employment in eco-industries and circular economy sectors (% of total workforce) is 0.11% in 2013, reaching only 15% of the EU average. Finally, turnover in eco-industries and circular economy sectors (% of total turnover) ehich is also based on a new data is 0.09% in 2013. All these data provision changes resulted in a significant change of the Socio-economic outcomes component.

By comparing the 2013 Eco-innovation scoreboard composite index for Slovenia with the results for 2012 and 2011 one can conclude that the largest effect in the decline of the composite index was on account of socio-economic outcomes or, more precisely, declines in eco-industry exports, its share in total export, as well as introduction of new data source for turnover and employment in eco-industries and circular economy. The component indexes for 2011 and 2012 were based on 2010 and 2011 data respectively (for eco-industry exports and its share in total exports) and 2008 data for employment and revenue in eco-industries and circular economy, which (especially for the latter two) have not yet taken into account the vast consequences of the financial and economic crisis in Slovenia. When Slovenia faced the crisis in 2008 its GDP per capita amounted to 91% of the EU average (Eurostat, 2014d), but then fell in 2009 by 7.9% (Eurostat, 2014e), whereas its exports fell by 16.1% (Eurostat, 2014f). In 2012 Slovenia’s exports returned to their pre-crisis levels, but the Slovenian GDP per capita reached only 84% of the EU average. Furthermore, Slovenia has been unable to attract any green early-stage investments. Nevertheless, there are some positive trends to be mentioned. On one hand, material productivity doubled from 2011 to 2013 and, on the other, eco-innovation related publications and patents are on the rise, as well as total R&D personnel and research projects, all of which shows that there is a body of knowledge on eco-innovations that is being developed. However, as mentioned early on, one of the key problems in Slovenia remains the transfer of that knowledge from higher education and the public sector to the private sector.


3 | Selected eco-innovation areas and new trends

In Slovenia the leading areas for eco-innovation remain climate and automotive technologies, efficient electric equipment and mobility, renewable sources of energy, eco- and energy efficiency in buildings, sustainable construction, and new materials (nanomaterial, biomaterial, etc.). In the field of climate and automotive technologies Hidria, an industrial conglomerate which provides integral solutions which was declared the most innovative company in Europe as part of the European Business Awards among 15,000 competing companies in June 2013, continues to be a leading Slovenian, European, and global company. Its innovative solutions concerning products, technologies and business models, such as a “radical” exhaust emissions reduction in new-generation diesel engines, highly efficient hybrid and electrical propulsion systems for cars of the future, and solar air-conditioning for buildings, contribute significantly to the green mobility of the future and to raising the air quality of buildings which are integrated into the natural environment (STA, 2013).

Pipistrel, a company that won the NASA Green Flight Challenge three times in row, is a leading innovator worldwide in the sector of light energy-efficient aviation. In 2012 Matevž Lenarčič performed a flight with their light and eco-friendly aircraft around the world and over Mount Everest (Green Light World Flight, 2012). In 2013 a flight over the North Pole set new standards in environmentally-friendly and utility flying (Green Light World Flight, 2013).

In the sector of efficient home appliances Gorenje remains a leading Slovenian and European company with its focus on innovative user- and environment-friendly products. To date, Gorenje has already won 13 International Plus X Awards, the last one in June 2013 for its IQcook induction hob (Gorenje, 2014) (for more see the section on good practice examples).

Important eco-innovation areas in Slovenia continue to be eco- and energy efficiency in buildings and sustainable construction, with several innovative leading companies such as Trimo (see 2012 good practice example), Lumar, Knauf Insulation, Riko, and more. In the area of renewable energy sources, Bisol continues to be a leading global company with its development and production of premium quality mono- and multicrystalline silicon photovoltaic modules which exhibit among the highest energy yields (see also 2011 good practice example).

Despite the harsh financial environment and a reduction in demand in the last few years in Slovenia, leading innovative companies have managed to adapt to these changed circumstances and allocate an even larger share of means to R&D, contributing to an increase of gross domestic expenditure on R&D (GERD) in 2012 of 3.8% (or EUR 34 million) in comparison to 2011. The highest share among total gross domestic expenditure on R&D (GERD) in 2012 was thus contributed by companies (EUR 577.6 million or 62% of total sources of funding for R&D) (SORS, 2014). However, small and medium sized enterprises (SMEs) still find it challenging to acquire the funds needed for R&D or later on in order to set up large-scale production, but also for the indispensable promotion of new eco-products and/or technologies. On account of the small national market and the limited possibilities of acquiring funds, due to limitations in obtaining credit/loans from Slovenian banks and restrictive economic policies, SMEs are rarely able to succeed in becoming international, thereby leaving many eco-innovative opportunities unrealised (Makovac, 2014).

Furthermore, the government sector’s gross domestic government expenditure on R&D has continued to decrease, from 35% in 2010, and 14.3% in 2011, to 13% in 2012 (SORS, 2011; SORS, 2013; SORS 2014). However, in the private sector and society in general an understanding and awareness that (eco-)innovations represent a better added value for service and product developers, and represent the way to a better standard of living, is gradually prevailing (Makovac, 2014; Bulc, 2014). This trend has also been demonstrated in the R&D expenditures of companies,


which have increased by one third over the past two years; EUR 435.5 million or 58% of total sources of R&D in 2011, and EUR 577.6 million or 62% of total sources of R&D in 2012 (SORS, 2011; SORS, 2014).

A more sustainable lifestyle is being actively promoted (also by companies) in order to raise public awareness on eco-food, waste management, and traffic emissions. Energy efficiency in residential buildings and other ways to save energy are also being promoted, which has led to an increased demand for locally cultivated/produced eco-products, and the development of small eco-oriented farmers and business.

One of the promising areas in eco-innovation is the biomass-based industry. Slovenia is the third most forested country in Europe. However, it has been unable to take advantage of its enormous biomass potential in nature. Moreover, in February 2014 it suffered from devastating ice storms (Reuters, 2014; BBC, 2014) which damaged (a minimum of) 40% of its forests (MKO, 2014). Nevertheless, the government aims to activate the EU solidarity fund and enable EU grants from the new Rural Development Programme for the 2014-2020 period (ibid.). Funds for damage recovery and development of the wood industry will also come from indemnities and favourable long-term loans given by the European Investment Bank (EIB) (Vlada.si, 2014).

Another promising, though still underdeveloped area in Slovenia continues to be wind-energy production (Kandolf, 2014). Although Slovenia has identified the possibility of 600MW of wind potential (Windpowermonthly, 2013), so far only one 2.3 MW wind turbine was set up in October 2012 in Dolenja vas pri Senožečah. Though there are plans to set up fields of wind turbines in Volovja reber, Selivec, Vremščica and Golič, the projects have not been implemented due to the fact that investors were unable to obtain the required (environmental) permits.


4 | Eco-innovation barriers and drivers in Slovenia

The main drivers of eco-innovation in Slovenia consist of the abovementioned leading innovative Slovenian companies and several others, which have accumulated sufficient financial, technical, and human resources to invest in R&D and to promote and develop sustainable and eco-innovative products and services. SMEs, however, find it difficult in the current financial and economic crisis, to access the much needed funds for R&D in general. Kandolf and Makovac (2014) also stress the high entry costs related to R&D in the field of eco-innovation and the moderate financial incentives for SMEs, which make the entry gap very challenging. Slovenia has a small and open economy which in many ways is dependent on the international environment. The European common market thus represents an opportunity for eco-innovations that would otherwise not be realised due to the small national market which often lacks sufficient eco-demand. Additionally, as governmental expenditures for R&D continue to decrease, EU funds have become an important source for many R&D projects in Slovenia. Moreover, EU policies sometimes represent the only impetus in “greening” Slovenian policies (Eco-innovation in Slovenia, 2011), as the priority within the current financial and economic situation still tends to be given primarily to economic objectives.

Large innovative companies have the ability to develop and use technical and technological solutions. In parallel, many centres of excellence and centres of competence and development contribute to the development of eco-innovative solutions. However, as Makovac stresses (2014), R&D centres tend to market their R&D services at market prices, which often represents a substantial financial barrier for some SMEs. Research and development personnel (as % of the labour force) continues to increase – from 0.71% in 2004, and 1.24% in 2010, to 1.51% in 2012 – and was well above the EU-28 average of 1.09% for 2012 (Eurostat, 2014c). However, in 2011 representatives of the private sector (Eco-innovation in Slovenia, 2011) stressed that the system of higher education was not adapted to meet the needs of the private sector, and that the transfer of knowledge from it and the public sector was insufficient. A similar assessment concerning insufficient cooperation on the part of academic and corporate research was made by the European Commission (2011), and again by the non-governmental sector in 2014 (Bulc, 2014). If human resources and knowledge capital is available, but insufficiently adapted to meet the needs of the private sector, a similar conclusion could be made in relation to natural capital. Slovenia has at its disposal abundant natural resources, especially biomass, geothermal, and hydro energy, not to mention wind and solar energy. These resources, however, remain underused.

Another significant barrier for eco-innovation in Slovenia is the lack of an integrated policy or framework focusing on eco-innovations. The existing R&D policy framework is being substituted with a new one for the 2014-2020 period, in which eco-innovations are to represent an important aspect of R&D. However, adoption and implementation is lagging behind. A significant barrier is also the lack of any capacity to take collective political action towards more green and eco-innovative policies, which is also due in part to the overlapping circles of the business and political elites, something which occasionally results in controversial and non-environmental projects such as the above-mentioned new TEŠ6 lignite block at the thermal power plant in Šoštanj. Another barrier is the number of often long and ineffective administrative procedures necessary in order to acquire the multitude of permits needed to launch a project, e.g. the construction of wind turbines in Slovenia (Kandolf, 2014). Nevertheless, non-governmental (environmental) organisations, local public authorities and innovative private enterprises remain important drivers in the overall promotion of a more sustainable way of life and eco-innovative development. A baseline consensus on the green agenda in Slovene society and the political and business community continues to grow (Bulc, 2014; Makovac, 2014) despite the many abovementioned barriers. An important role in this process is also being played by the international media and the EU, whose policies have been positively influencing Slovene society to gradually adopt a more sustainable way of life.


5 | Eco-innovation policy landscape

In December, 2011, the first early elections in Slovenia’s history took place and a new government with Janez Janša as Prime Minister took office in February 2012. However, their mandate ended early when the Slovenian National Assembly passed a vote of no confidence on 1 March, 2013. A new government was formed on 20 March with Alenka Bratušek becoming Slovenian Prime Minister. On account of these political changes in the last two years, and governments focusing mainly on resolving the severe banking crisis in Slovenia in order to reach fiscal stability and economic recovery, the adoption and implementation of any relevant eco-innovations policies is lagging behind. The document Slovenia’s Development Strategy for the period 2006–2013 has expired, but a new strategy which was already expected to be adopted in January 2013, along with other relevant documents, has not yet been implemented.

Slovenia’s most important strategic development document for the period 2014-2020, the new Slovenia’s Development Strategy 2014-2020 (SRS 2014-2020), will define the future direction of economic and social development in the country. Its implementation in the mid-term period will be defined by the Programme of Development Priorities and Investments 2014-2017 (PDPI 2014-2017). Since some of the development opportunities will be financed by European Cohesion Policy funds1 the Partnership Agreement, the Operational Programme at the national level, and operational programmes for cross-border cooperation, the neighbouring states also need to be prepared. Key strategic development documents are being prepared by the Ministry of Economic Development and Technology.

The document Slovenia’s Development Strategy (SDS) sets the vision in the 2014-2020 period as “socially and environmentally responsible investment for a competitive Slovenia”, where development depends on improving the efficiency of all resources: human, financial, natural, and technological. Among the objectives and targets set in the SDS document, the aim to decrease the ecological footprint per capita from 5.21 in 2012 to 4.9 in 2020 should be mentioned. Research, development, and innovation is the first of the three main areas of economic development, whereas a green living environment (water resources, renewables, forest and wood, biodiversity) will be one of the four strategic priority areas to which 50% of the development funds available by 2020 will be allocated (MGRT, 2013a). The Programme of Development Priorities and Investments (PDPI) will present the implementation plan for the SDS document in the 2014-2017 period, and will include all the policies and public financial resources, where “green” will be one of its development priorities and investment areas (MGRT, 2013b).

The document Resolution on Research and Innovation Strategy of Slovenia 2011-2020 (RISS), adopted in May 2011, should systemically regulate the fields of technological development, innovation, cooperation between R&D and the private sector, and decrease barriers for technology transfer from R&D to the private sector. In order to be implemented, several legal acts should have already been adopted. However, due to the above-mentioned political changes in Slovenia in the last two years, its implementation has been delayed. In the RISS document green public procurement was expected to be one of the key elements stimulating eco-innovation. In line with EU requirements, a Decree on Green Public Procurement (GPP) was adopted at the end of 2011, and included mandatory environmental criteria and recommendations as well as guidelines for practical implementation. However, an obstacle to the more rapid adoption of GPP is the lack of expertise and skills on the part of public procurements (OECD, 2012). In 2010 a new Public Procurement Agency was established in order to implement GPP, but it ceased to exist in June 2012 as a part of measures aimed at the reorganisation of the public sector, and the Ministry of Finance (Public procurement directorate) took over its activities.

1 Slovenia will remain a net receiver of EU cohesion funds in the amount of EUR 3.3 billion (in current prices) which has been negotiated for the 2014-2020 period (MGRT, 2014d).


Although numerous economic and environmental measures in the area of R&D and innovation adopted in the past also support eco-innovations in general, Slovenia still faces problems in adjusting its regulative framework to EU legislation, and especially in implementing it. Moreover, government representatives and relevant ministries stress that Slovenia is at a turning point (MGRT, 2014c). However, the adoption and implementation of new key strategic and operational documents is still lagging behind. On one hand, Slovenia faces the challenge of determining the long-term economic, environmental and social development of the country, on the other, the political changes in the last two years, along with the challenges of consolidating public finances and the short-term solutions regarding the effects of the persisting financial and economic crisis (OECD, 2013), pose serious obstacles in catching up with the rest of the EU.

In the past few years, Slovenia has failed to adopt a specific policy that would address eco-innovations. The policies aimed to promote R&D have not had any dedicated focus on eco-innovation. Moreover, some areas of environmental policy, eco-innovations in particular, remain neglected. Slovenia is one of the few EU Member States (along with Estonia, Latvia, and Lithuania) which has not adopted a Roadmap for the implementation of the Environmental Technology Action Plan (ETAP). Namely, it does not consider ETAP to be a priority and has not participated in any ETAP/EcoAP meetings in the last four years.


6 | Good practice examples

Florian Description: Florian is a smart device, which automatically regulates the draft of flue gases in flue gas pipes. It is installed on flue gas pipes used for wood-burning stoves. By automatically regulating the draft in chimney pipes Florian generates optimum combustion conditions in the stove. This increases wood stove combustion efficiency by 20%, which results in major savings as regards fuel use and reduced emissions of exhaust gases. With optimum combustion conditions Florian guarantees a higher level of comfort and security of the use of stoves in living quarters. It also prevents excessive overheating of the stove and excess loss of energy due to the high temperature of the exhaust gases. Optimum combustion enabled by Florian prolongs the duration of the burning of wood and reduces fuel consumption. 1. Award of the 8th Slovenian Innovation Forum (Award winning innovations of 8. SFI webpage). At the Innovation Day 2013 it also received the Silver Innovation Award by the Slovenian Chamber of Commerce and Industry. Most important driving factors:

- increases the wood stove efficiency by 20 %, - reduces CO2 emissions, - increases comfort and safety for the final user.

Economic and environmental impact:

- Economic performance: increases the efficiency of the wood stove by 20 %.

- Social performance: increases comfort and safety for the final user.

- Environmental performance: reduces CO2 emissions and increases the wood stove efficiency.

Keywords: flue gases regulation, combustion efficiency, fuel savings, emissions reductions Internet links:

- FLORIAN webpage (general information) - Florian_InfoSheet_A4.pdf - Florian.pdf

Contacts for further information:

- Organization: ATech elektronika d.o.o. - Authors of innovation: Massimo Makovac, Martin Žerjal, Primož Podboj, Aleš Miklavec - Contact: [email protected], +386 41 771 393 - Address: Bač pri Materiji 30, 6242 Materija


Gorenje IQcook Description: Gorenje’s new intelligent and highly sensitive IQ Sensors automatically adjust the operation of the hob and eliminate the need for continuous manual control of the progress of cooking so users can maximise their time while their meals cook. But the new technology not only saves precious time by optimising the cooking temperature but it also saves energy. The IQcook cooking hob can even save up to 40% in energy consumption compared to conventional induction technology hobs. The new induction hobs are based on Gorenje's new generation XtremePower induction hobs which have been upgraded with sensor technology for safe, controlled cooking. The system’s highly sensitive IQ sensors are the key, proven, reliable helper. The patented SmartSense safety function prevents food from boiling over or burning: if the water evaporates entirely from the pot or pan, SmartSense automatically switches the cooking hob off. Gorenje's IQcook induction hob was honoured with the international Plus X Award for the best product of the year in the category of home appliances in June 2013. At the Innovation Day 2013 it also received the Gold Innovation Award by the Slovenian Chamber of Commerce and Industry. Most important driving factors:

- maximizes time while cooking – 100 % automatic cooking control, - optimizes the cooking temperature – 100 % safety from boiling over and burning, - 100 % active preservation of nutrients, vitamins and proteins, - saves up to 40 % of energy compared to conventional induction technology hobs.

Economic and environmental impact: - Economic performance: saves energy consumption up to 40 % and enables to prepare food

in less time, thus saving time and additional energy. - Social performance: IQcook enables to prepare food in less time, thus enabling to save

time and enjoy other aspects of life. Cooking with IQcook also preserves all nutrients, vitamins and minerals in the food, thus enabling to enjoy quality food and better standard of living.

- Environmental performance: IQcook cooking hob optimizes the temperature throughout the cooking process to achieve considerable energy savings, up to 40 %. A novelty IQsteam cooking mode saves water by taking only 0.5 dl of water to cook 1 kg of vegetables.

Keywords: induction hob, intelligent sensor technology, energy saver Internet links:

- Gorenje webpage (Revolutionary IQcook technology from Gorenje) - Gorenje IQcook Video


Contacts for further information: - Organization: Gorenje gospodinjski aparati, d.d., Slovenia - Contact: [email protected], +386 (0)3 899 10 00 (phone), +386 (0)3 899 28 00 (fax) - Address: Partizanska 12, 3503 Velenje, Slovenia

GoOpti – intelligent passenger transport

Description: The GoOpti innovation generates added value for users by enabling travel at lower/- est prices. The innovation enables affordable trips (e.g. low-cost transfers to airports and long-distance trips of individual persons) using a proprietary innovative booking system and dynamic pricing of transports with efficient (smart) management of the passenger transport log system.

The developed innovative business model creates value for several types of customers that GoOpti connects through their platform . The model takes a sustainable approach to resolving the problem of mobility – passenger transport that is environmentally friendly and one that provides all those who are part of the GoOpti business model value chain with sustainable growth of operations. It is a disruptive innovation with enormous market potential, which is demonstrated by the planned 100,000 passengers transported in Slovenia in 2013, the outstanding growth in revenues and customers for the third year running as well as the tremendous interest shown by new (foreign) partners in joining their franchise model. Award for the most innovative business model of the 8th Slovenian Innovation Forum: GoOpti – intelligent passenger transport (Award winning innovations of 8. SFI webpage) Most important driving factors:

- low-cost transfers using a proprietary innovative booking system and dynamic pricing, - efficient (smart) management of the passenger transport log system, - sustainable approach to the mobility problem, - environmentally friendly.


- Economic performance: enables flexible travelling at lower prices. - Social performance: enables affordable and flexible trips to individual persons. - Environmental performance: represents a sustainable approach to resolving the problem of

mobility. Keywords: innovative business model, low-cost transfer, innovative booking system, dynamic pricing, mobility problem Internet links:

- www.goopti.com (GoOpti homepage)


Contacts for further information: - Organization: TM Vista d.o.o - Authors of innovation: Marko Guč ek, Sašo Sušnik, Tomaž Lorenzetti (business modell),

dr. Boris Horvat, dr. Alen Orbanić, dr. Jernej Tonejc (smart services) - Contact: [email protected], 00386 1 320 4530 - Address: Tehnološki park 18, 1000 Ljubljana, Slovenia

Good practice example: Eco-Colored Glass Description: The innovation represents a new procedure and recipe for colouring transparent glass with harmless and eco-friendly components found outdoors, which have never been used for the preparation of coloured glass. To create coloured transparent glass products ferrites are used, which are environmentally friendly, bio-compatible, do not have any harmful effects on the environment and living organisms, and are present in nature in the form of ferromagnetic ore. With the addition of ferrites, with a specific chemical composition, size and concentration of particles, a whole spectrum of various colour shades is achieved for the manufacturing of coloured glass products with natural colorants. The innovation enables unique and effective production of coloured eco glass for decorative and promotional purposes and glass that comes into contact with foods (promotional bottles, unique glasses, decorative elements, plates and other tableware products). 2. Award of the 8th Slovenian Innovation Forum (Award wining innovations of 8. SFI webpage) Most important driving factors:

- completely environmentally friendly and bio compatible ferrites used, - without any harmful effects on the environment and living organisms.


- Economic performance: a new procedure and recipe for colouring transparent glass with harmless and eco-friendly components.

- Social performance: unique and effective production of coloured eco glass for decorative and promotional purposes and glass that comes into contact with foods.

- Environmental performance: use of ferrites, which are environmentally friendly and have no effects on the environment and living organisms.

Keywords: eco colored glass, environmentally friendly glass, natural colorants Internet links:

- www.rc-enem.si (Slovene) - Eco-colored glass (8th Slovenian Innovation Forum catalogue)



- Organization: RC eNeM Novi materiali d.o.o.; Subsidiary of Steklarna Hrastnik - Authors of innovation: Mateja Koritnik (RC eNeM d.o.o, PO Steklarna Hrastnik); Dr.Branka

Mušič (Nanotesla Institut Ljubljana); Nevenka Rajnar (Nanotesla Institut Ljubljana) - Contact: [email protected], 00386 3 565 4864 - Address: Podvine 36, 1410 Zagorje ob Savi, Slovenia

Good practice example: “Ecocell” – ion boiler Description: The ion boiler Ecocell is a tankless water heater, which operates on the principle of direct conversion of electricity into heat. When an electric current flows through the working medium of the cell (ion current), it causes the process of chaotic movement of molecules of the working medium in the cell with a frequency of 50 Hz, which in turn causes a rapid increase in the temperature of the working medium throughout its entire volume. It is this dynamics that enables the precise coverage of the heat losses of the consumer. Ecocell is easy to operate and control, and causes no emission losses. Award for the best innovation by a startup company of the 8th Slovenian Innovation Forum (Award winning innovations of 8. SFI webpage) Most important driving factors:

- high heating savings, - no emission losses, - 100% environmentally friendly.


- Economic performance: direct conversion of electricity into heat with no emission losses.

- Social performance: Effective and economic everyday home use for water heating.

- Environmental performance: no emission losses.

Keywords: ion boiler, water heating, no emission losses Internet links:

- Aurora 3m+ webpage (Slovene) - “Ecocell” – ion boiler (8th Slovenian Innovation Forum catalogue)


- Organization: AURORA 3M+ d.o.o. - Contact: [email protected], 00386 51 710 044, - Address: Dunajska 156, 1000 Ljubljana, Slovenia

Pictures source: “Ecocell” – ion boiler (8th Slovenian Innovation Forum catalogue)


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ANNEX 1. Policy measures addressing eco-innovations in Slovenia

Focus of policy measure (tick if relevant)

Group of policy measures Type of policy measure

Specific measure

Please provide reference to or brief summary of specific measures (national, regional)

Generic focus on

eco-innovation

Resource efficiency improvem

ent

Energy efficiency improvem

ent

Reduction of emissions incl. CO2

Other relevant

areas (e.g. renewable

energy, etc)

Venture capita funds - Slovene Enterprise Fund (SEF) implements equity financing instruments since 2010 through public tenders by inviting private venture capital companies to invest acquired funds, together with funds provided by private investors, as venture and mezzanine capital in promising, innovative and fast-growing SMEs

x x

Equity/business support

Public guarantee funds - Slovene Enterprise Fund (SEF) offers the bank loan guarantee line to technology innovative SMEs

x x

R&D funding - The Slovenian Research Agency (SRA) supports R&D in public sector through manifold research programmes carried out by programme groups in public research institutions, universities, etc.

x x x x X

Collaborative grants - Slovene Enterprise Fund (SEF) offers grants for enterprise start-ups to encourage establishment and launching of innovative and technology-oriented enterprises

x x x x x

Support for R&D in public

sector and industry

R&D infrastructure - Research Infrastructure Development Plan 2011-2012 prepared by the (former) Ministry of higher education, science and technology sets Slovenia's priorities for participation in the development of large-scale European projects on research support infrastructure and for developing support infrastructure at home. It was adopted by the Government in April 2011.

x x x x x

Tax incentives for R&D

and start-ups - Companies enjoy tax relief for their investments for R&D and the Corporate Income Tax Act also introduced tax relief for venture capital investments in fast-growing and innovative SMEs through venture capital companies.

Fiscal measures

Tax incentives for R&D

personnel

SUPP

LY S

IDE

FOC

US


Tailored training courses for companies, entrepreneurs

- The website Imam idejo! (I have an idea!) run by the Slovenian Centre for Competitiveness and Innovation (SCCI) is an interactive tool for innovative users, seeking financial, technical, legal and other support relating to their sophisticated invention or outline scheme. The website is designed for users, taking into account the problem they face within the innovation process.

- One Stop Business Points (VEM and e-VEM) for companies and entrepreneurs that enable free registration of a company or entrepreneur and free of charge simple legal changes on private limited companies.

Advise/consulting for start ups, companies, entrepreneurs

- Podjetniški portal (the Entrepreneur’s Page) run by SPIRIT (Public Agency of the Republic of Slovenia for the Promotion of Entrepreneurship, Innovation, Development, Investment and Tourism) offers information and advices, how to start a company

Placement schemes for students

Education, training and

mobility

Support for R&D workers recruitments

- Eight Centres of Excellence were selected within a public call by the Ministry of Higher Education, Science and Technology for the development of centres of excellence in 2009–2013.

x x

Competence centres, clusters, science-technology parks - Seven centres were selected within a public invitation to tender by the

Ministry of Higher Education, Science and Technology for the development of competence centres in 2010–2013

x x

Technology platforms and innovation networks

Foresight and common vision building

Networks and partnerships

Market intelligence and other forms of information

sharing - Chamber of Commerce and Industry of Slovenia provides market intelligence to companies and organises manifold seminars, workshops and conferences.

x x x x x

Regulations, targets, cap & trade schemes - implementation of the EU legislation x x x x

DEM

AN

D

SID

E FO

CU

S Regulations and standards


Performance standards, labelling, certification

- Implementation of the EU labelling policy; in July 2013 Slovenia started to implement the EU legislation on energy efficiency in buildings (Energy Identity Cards)

x x x

“Green“ public procurement of goods and

services - Environmental and sustainability requirements are being introduced in public procurement procedures (“Green“ public procurement of goods and services).

x x

R&D procurement

Public procurement

Pre-commercial procurement

Advisory support for technology adopters

Technology Transfer

Financial or fiscal support for technology adopters

(e.g. grants for purchasing new technology)

Tax incentives for consumers (e.g. for

purchasing environmentally efficient

products)

Tax reductions for products and services (e.g. VAT reductions)

Demand subsidies (e.g. eco-vouchers, consumer

subsidies) - Slovenian Environmental Public Fund stimulates the protection of environment by granting consumer subsidies, approving credits or guarantees for environmental investments and by other means of aid

x x x x X

- Ministry of Agriculture and the Environment raises awareness and provides information on various environmental and sustainable issues, e.g. sustainable agriculture and local food production

x x x x x

Support of private demand

Awareness raising and information provision

- Slovenian Environment Agency provides information on air, water, environmental protection, nature, climate change

x x x x x

About the Eco-Innovation Observatory (EIO)

The Eco-Innovation Observatory (EIO) is an initiative financed by the European Commission’s Directorate-General for the Environment. Since 2009 the Observatory has been developing an integrated information hub on eco-innovation addressed to business, policy makers, innovation service providers and researchers. The EIO supports the implementation of the European Eco-Innovation Action Plan of the European Commission.

Visit our website and get full, free access to the EIO’s reports and databases.

www.eco-innovation.eu

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