This article analyzes business and managerial start-ups, research and devel
opment (R&D) and innovation activities in Slovenia during economic transfor
mation and preparation for European Union (EU) accession. The growing compe
titive pressures as a result of institutional and economic deregulation, pr
eparation for EU accession, and greater reliance on profitability are likel
y to encourage greater incentive for firms to adopt the best technology and
to innovate, developing and diffusing new products to enhance or maintain
competitive positions and market share. The article addresses the crucial i
mportance of firm entry, entrepreneurship, and managerial start-ups, R&D an
d product innovation activities for economic efficiency, and flexibility an
d competitiveness as potentially crucial factors for economic growth.