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