Deloitte Slovenija believes Slovenia should increase these investments, lest the country falls behind other Central European countries.

The survey showed that 44% of Slovenian companies earmarked between 5% and 10% of their revenue for research and development in 2015. Only 11% earmarked more than 10%, which is less than the average for all participating countries.

According to Andreja Škofič Klanjšček of Deloitte Slovenija, companies should be connecting with universities and research institutes, which would facilitate the transfer of knowledge into practice and the creation of new ideas.

Only half of the respondents said they collaborated with third parties in carrying out research projects, while the average share for other countries stood at 71%.

The most common form of intellectual property protection in Slovenia was using trade marks, followed by patents and company secrecy policies. Škofič Klanjšček believes that specific know-how should be better protected, recommending patent protection at the European Patent Office.

Slovenia currently earmarks 2.4% of its gross domestic product for research and development, which is below the country's strategic goal of 3%, Škofič Klajnšček said and added that investments need to be increased.

"Investing in research and development is crucial, as it raises added value and bolsters the competitiveness of Slovenian companies," she said.

According to her, labour costs should be reduced, as it would prevent brain drain. "Currently, we have enough engineering personnel which can carry out these projects. But the fact is they are going abroad where they are paid better and get better opportunities."

Tax breaks for research and development should not be reduced or removed and the regulatory environment needs to be improved.

"People need to feel safe in our economic environment. We must look at what we can do to reduce administrative burdens on the local level. That is the only way we can improve economic development."

Deloitte Slovenija participated in the survey on investments in research and development for the second time. The survey was carried out on the Central European level for the fifth time.

The survey was conducted among 400 heads of tax departments in 10 countries.