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Centre pour l'entrepreneuriat, les PME, les régions et les villes

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Strengthening FDI and SME Linkages in the Slovak Republic

This report assesses the linkages between foreign direct investment (FDI) and domestic small and medium-sized enterprises (SMEs) in the Slovak Republic. It provides policy recommendations to national and subnational governments on how to foster productivity and innovation spillovers from FDI to the local economy. The report looks at the quality of investment the country attracts, the absorptive capacity of Slovak SMEs, and a broad range of economic, business and policy conditions that can strengthen knowledge and technology diffusion from FDI to domestic SMEs. It also provides a diagnostic assessment of the core FDI-SME spillover diffusion channels, namely value chain linkages, strategic partnerships, labour mobility, and competition and imitation effects. The report provides an overview of the Slovak policy arrangements for promoting international investment, SME performance and innovation, and regional development. It does so by taking a close look at multi-level coordination, stakeholder consultation and impact evaluation. It then reviews the policy mix in support FDI-SME linkages and spillovers and proposes concrete areas for further policy reforms. The last chapter introduces a regional lens, focusing on the regions of Banská Bystrica and Košice. This report is part of a multi-year European Commission-OECD project on strengthening FDI-SME ecosystems and is the second pilot review for future country assessments.

Available from December 09, 2022

TABLE OF CONTENTS

Preface
Foreword
Acronyms and abbreviations
Executive summary
Scope of FDI spillovers on SMEs: Conceptual framework
Enabling conditions for FDI and SME spillovers in the Slovak Republic
FDI diffusion at play for Slovak SMEs
The institutional and governance framework for FDI-SME diffusion
The policy mix for FDI-SME diffusion
Regional focus: Banská Bystrica and Košice
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