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Smart Slovenia

How Research And Development Is Positioning The Country As A Global Innovation Hub

Home to a host of globally recognized high-tech solutions, services, and products, the central-eastern European country of Slovenia has become something of a technology powerhouse in recent years – an achievement fueled by the nation’s entrepreneurial spirit and a long tradition of combining experience and knowledge with innovation.


It was in 1949 when the world-renowned Jožef Stefan Institute (JSI) was founded in what is now the Slovenian capital of Ljubljana, a center that’s become known as the planet’s top AI research facility. Here, inventors Dr. Igor Muševič and Dr. Matjaž Humar developed the world’s first practical 3D microlaser, which went on to revolutionize the world of imaging.

It was also where Slovenian tech company Pipistrel unveiled the world’s first four-seat passenger aircraft powered by a zero-emission hydrogen fuel cell propulsion system.

Today, Slovenia is emerging as a center for innovation. Ranked fifth in the world by the Organisation for Economic Co-operation and Development (OECD) for smart products delivered daily by the Slovenian digital and robot-intensive economy, the country is projecting itself on a global scale. As a result, it has become a leading country in cross-border trade worldwide.

Slovenia has demonstrated an annual growth in GDP of 2.4% in 2019, mostly due to the continued steady increase in exports. The automotive industry is one such example, thanks to its development of sustainable automotive components, which are now integrated into almost every vehicle made.

R&D: the heart of Slovenia

In recent times, Slovenia has achieved some rather impressive results across a host of fields within the technology sector, not just automotive, but robotics, pharma, mobility, digitalization, development, and research, as well as the creative industries. These areas have become key to the country’s impressive economic development, made possible through an expansion in foreign direct investment (FDI). 

Slovenia ranks as one of the least restrictive OECD-member countries for FDI, which is no doubt why it’s seen FDI stock double in the last 10 years. This is a result of the impressive variety of innovative companies that operate within its borders. Teeming with pioneering companies – each of which represents great potential partners for those seeking quality products and services – Slovenia certainly offers up numerous opportunities for savvy investors looking for prime investment location. 

Some of the companies leading the charge here include electric vehicle solutions firm TPV Automotive, e-motor innovator Fotona, and industrial engineering company Podkriznik Group, who recently won the GZS Golden National Award for Innovation 2020 for its ground-breaking development of a central drive for e-bikes.

Iztok Podkrižnik, the company’s founder and director, explains the process involved in creating this cutting-edge innovation.

“There was a lot of work on solving technical challenges since our goal from the beginning was to develop a drive that will offer more for a lower cost in comparison to our competition,” he says. “The development also proved that it is possible to successfully cooperate in the Slovenian community with clearly defined goals.”

Podkriznik Group’s award winning central drive system for e-bikes

However, Podkrižnik notes that the development of such a product is “never finished”, as there will always be room for expansion, upgrades, and integration into various lightweight vehicle applications.

“R&D is ongoing, and we are already working on new solutions for extended use with the respect to carbon neutral impact on the environment.”

This, he says, is enabled by Slovenia’s dedicated focus on research and development. And coupled with state-of-the-art facilities, is the reason why Podriznik Group can consistently contribute towards Slovenia’s burgeoning sustainability agenda.

“The research and development of products are very important for our company,” the founder adds. “It is a development process that we have been building and upgrading for years and is especially important for the development of our complex products.”

A global destination for investment

Not only does the country possess some attractive and sustainable business practices but its strategic location within Europe, highly skilled and well-trained workforce, as well as advanced ICT infrastructure, are all factors that contribute towards its desirability to investors.

Innovation is at the heart of Slovenia’s economic life and has become a critical component in its ability to remain competitive as well as being a desirable destination for investment across the globe.