In 2017, foreign affiliates represented 5.6% of all enterprises in Slovenia, generated 27.2% of valued added, employed 25.8% of all employees and generated 39.0% of total R&D expenditure. Economically most important foreign affiliates were controlled by Germany, Austria and Switzerland.
8,018 foreign inward affiliates operated in Slovenia in 2017
A foreign inward affiliate is an enterprise resident in Slovenia over which an institutional unit that is not a resident in Slovenia has control. As far as the data sources allow, we follow the origin and business performance of the foreign inward affiliates by the principle of the ultimate controlling country, which means by the resident country of the institutional unit (legal entity or natural person) ultimate owner at the top of the decision-making on business strategy of the enterprise chain.
In 2017, 8,018 or 5.6% of all active enterprises (142,153) operating in Slovenia in non-financial activities (NACE sections B to J, L to N and S95) were foreign affiliates.
Economically most important foreign affiliates were controlled by Germany, Austria and Switzerland
Foreign inward affiliates were in 2017 controlled by 106 different countries. The majority, more than 90%, were controlled by European countries. 3% of affiliates were controlled by American and Asian countries, while African, Oceanian and Polar regions together controlled less than one percent. About half of foreign inward affiliates were controlled by EU-28 Member States.
Among foreign inward affiliates, the most numerous (nearly two thirds) were the affiliates of Italy, Serbia, the Russian Federation, Bosnia and Herzegovina, Austria, Croatia and Germany. Economically most important foreign inward affiliates, the ones that generated the most value added (nearly two thirds of all value added by foreign affiliates), were controlled by Germany, Austria, Switzerland, France, Croatia and Italy.
Foreign inward affiliates are economically very important
One of the key indicators of economic efficiency is value added. Foreign inward affiliates generated more than a quarter (27.2%) of total value added in Slovenia in 2017, which indicates strong business performance. In 2017, about a quarter (25.8%) of all employees in Slovenia were employed in foreign inward affiliates. All other operating results were showing similar relations (turnover, investments). The largest share had foreign inward affiliates at intra-mural R&D expenditure, where as much as 39.0% of all R&D expenditure in Slovenia was generated by foreign affiliates.
Affiliates under German and Austrian control generated a third of value added and investment of all foreign affiliates in Slovenia
Affiliates under German and Austrian control alone generated a third of value added, a third of investment and a third of employees of all foreign affiliates in Slovenia. The largest share, a third, of R&D expenditure was generated by enterprises under control of Switzerland. Together with enterprises under German control, they generated almost 60% of all R&D expenditure of foreign inward affiliates.
Foreign inward affiliates generated more than half of total value added in industry
Most foreign inward affiliates (43.2%) operated in other service activities (of which a third in professional, scientific and technical activities, a quarter in transportation and storage, followed by real estate activities, information and communication activity, and accommodation and food service activities). 29.5% of foreign inward affiliates operated in trade, followed by construction (15.0%) and industry (12.3%).
Within industry, more than half of all value added generated by foreign inward affiliates was generated and almost half of all employees employed in foreign inward affiliates were employed.
The majority of foreign inward affiliates in industry operated in manufacturing
The majority of foreign inward affiliates in industry operated (by NACE) in manufacturing (C), followed by electricity, gas, steam and air conditioning supply (D), water supply, sewerage, waste management and remediation activities (E), and mining and quarrying (B). Manufacturing activity with the highest value added and with the highest share of employees is manufacture of motor vehicles, trailers and semi-trailers. Manufacturing activity with the highest share of R&D expenditure was manufacture of basic pharmaceutical products and pharmaceutical preparations.
Structural business indicators of foreign inward affiliates, Slovenia