Details

Autor(en) / Beteiligte

• OECD
• OECD,

Titel

Strengthening FDI and SME Linkages in the Slovak Republic

Auflage

1st ed

Ort / Verlag

Paris : Organization for Economic Cooperation & Development,

Erscheinungsjahr

2022

Link zum Volltext

• OECD iLibrary

Beschreibungen/Notizen

• Intro -- Preface -- Foreword -- Acknowledgements -- Acronyms and abbreviations -- Executive summary -- 1 Scope of FDI spillovers on SMEs: Conceptual framework -- 1.1. Context and motivation -- 1.2. Conceptual framework to assess FDI spillovers on domestic SMEs -- 1.3. Implementing the conceptual framework in this report -- References -- Notes -- 2 Enabling conditions for FDI and SME spillovers in the Slovak Republic -- 2.1. Summary of strengths, challenges and opportunities -- 2.2. Economic, structural and geographical characteristics of the Slovak Republic -- The Slovak Republic's economy has been performing strongly until the COVID-19 crisis -- The Slovak economy is highly specialised, with a strong industrial base -- The automotive industry drives the performance of Slovak manufacturing -- Half of total exports are high-tech manufactured products, especially motor vehicles -- A number of promising regional industry clusters have emerged… -- … that could help reduce regional economic disparities -- 2.3. Potential for FDI productivity spillovers -- FDI inflows were a key driver of the Slovak Republic's economic catch-up to higher income countries -- There is an important productivity gap between foreign and domestic firms -- Further diversification in FDI's geographic origin could help foster spillovers -- Inward FDI is concentrated in higher technology manufacturing -- The predominance of greenfield FDI in higher technology manufacturing is likely to facilitate productivity spillovers -- Efficiency-seeking FDI in low value-added GVC activities remains prevalent -- 2.4. SMEs absorptive capacities -- The Slovak business population is dominated by myriad low-productivity micro firms -- The very high business dynamism may reflect a lack of scale up capacity in smaller firms -- SMEs are more present in the less technology-intensive sectors.
• The SME sector still underperforms in R&amp -- D and innovation -- Difficult access to strategic resources and inefficient business conditions weigh down on SME innovation capacity -- Competition conditions and infrastructure deficiencies raise obstacles to SME innovation -- Emerging skill shortages hamper the innovation performance of Slovak SMEs -- References -- 3 FDI diffusion at play for Slovak SMEs -- 3.1. Summary of strengths, challenges and opportunities -- 3.2. Value chain linkages between foreign MNEs and domestic SMEs -- Foreign MNEs source less domestically than their peers in other OECD economies -- Foreign MNEs export most of their output, with only a limited share used by domestic SMEs -- 3.3. Strategic partnerships between foreign firms and SMEs in the Slovak Republic -- R&amp -- D and innovation collaboration is relatively common among Slovak SMEs, especially with buyer and supplier firms -- Technology licensing agreements with MNEs are diffused in the manufacturing sector -- Joint ventures played an important role in the Slovak transition to a market economy and might still hold potential for productivity spillovers -- 3.4. Labour mobility between FDI and domestic firms -- Overall, job-to-job mobility of science and technology (S&amp -- T) workers is low by international comparison -- The high wage premia of foreign affiliates are likely to discourage labour mobility towards domestic SMEs -- Lack of training and learning opportunities in the SME sector may also hinder workers mobility -- 3.5. Competition and imitation effects of FDI -- Co-operation with, and information gathering from, competitors are relatively common practices for Slovak SMEs -- Most Slovak SMEs consider however competition as a major barrier to their innovation activities -- References -- 4 The institutional and governance framework for FDI-SME diffusion.
• 4.1. Summary of findings -- 4.2. Overview of the Slovak governance framework for FDI-SME diffusion -- Multiple ministries and government agencies are involved in implementing policies that act upon FDI-SME diffusion channels and enabling conditions -- The regional footprint of government agencies has been strengthened but policy coherence between national and subnational levels could be further improved -- Subnational governments have been given substantial responsibilities, but often lack the capacity and own resources to support local FDI-SME ecosystems -- 4.3. Policy coordination across institutions and tiers of government -- High-level government councils are generally proactive about bringing together different line Ministries, but fulfilling their coordinating role remains challenging -- Synergies for implementing the FDI-SME diffusion policy agenda could be strengthened through dedicated national strategies on innovation and SME policy -- Policy coordination among implementing agencies is not frequent and takes place either informally or in a centralised manner through line ministries -- 4.4. Evaluation of policy impact and engagement with stakeholders -- The Slovak Republic has a well-developed framework for undertaking policy evaluations but ministries and implementing agencies should improve their analytical capacities -- The Slovak Republic has a well-established practice of consulting with business and other stakeholders on legislative proposals and national policy frameworks -- References -- 5 The policy mix for FDI-SME diffusion -- 5.1. Summary of findings and recommendations -- 5.2. Overall balance of the policy mix for FDI-SME diffusion -- SME absorptive capacities, strategic partnerships and value chain linkages are the main objectives pursued by the Slovak policy mix.
• FDI-SME diffusion channels and their enabling conditions are supported mainly through financial incentives and technical assistance -- Market openness and a balanced labour market policy regime may facilitate FDI spillovers on Slovak SMEs, but the regulatory burden on business could be reduced -- 5.3. Policies acting upon the enabling environment -- Attracting and facilitating productivity-enhancing FDI -- Financial incentives are the main policy instrument used to attract foreign investment into productivity-enhancing and R&amp -- D-intensive activities -- Strengthening the absorptive capacities of Slovak SMEs -- Financial support for business R&amp -- D and innovation is among the lowest in the OECD area -- SME growth and upgrading is supported by a comprehensive set of technical assistance services -- however policy coherence could be further improved -- There is room to improve the regulatory environment for SMEs, especially for start-ups -- The knowledge transfer infrastructure could be further supported with the necessary financial and technical resources to promote science-to-business collaboration -- Mainstreaming economic geography considerations into FDI-SME diffusion policies -- Place-based approaches could be leveraged to strengthen the impact of FDI-SME diffusion policies on least developed regions -- Support to industrial clusters has increased, but a more comprehensive approach will be needed to strengthen the internationalisation of local FDI-SME ecosystems -- 5.4. Policies acting upon the FDI-SME diffusion channels -- Promoting FDI-SME linkages and strategic partnerships -- Matchmaking services are available to foreign and domestic firms, but more could be done to support supply chain development and promote R&amp -- D and technology partnerships -- Facilitating the mobility of workers from foreign MNEs to local firms.
• The Slovak Republic has a rather balanced legal framework for employment protection -- Addressing workforce skills gaps and mismatches has been a key priority for the Slovak economy -- Creating market conditions for fair competition and knowledge exchange between foreign MNEs and Slovak SMEs -- Regulatory barriers to competition are limited, but there is room for improving product market regulation in some sectors and domains -- The intellectual property protection framework is well-developed -- however enforcement procedures can be further improved -- References -- 6 Regional focus: Banská Bystrica and Košice -- 6.1. Summary of findings -- 6.2. Economic geography in Košice and Banská Bystrica -- Two regions at the crossroads of Central Europe -- Two regions in a process of deindustrialisation, with shifting specialisation -- The regional socio-economic performance in Košice and Banská Bystrica is still lower -- Ageing population, brain drain toward the west and a general skills challenge weigh on regional imbalances -- There are deficiencies in transport and digital infrastructure, especially in Central and Eastern regions -- 6.3. FDI spillover potential -- Inward FDI is concentrated in Bratislava while Košice drives the FDI performance of the East -- Productivity premia of foreign firms are low across all Slovak regions -- Greenfield investors in Košice and Banská Bystrica target a limited number of industries -- 6.4. SMEs absorptive capacity -- Both regions count mostly micro firms and SMEs are unevenly distributed across economic sectors and regional districts -- Lower business survival and scale up capacity can prevent the formation of linkages with MNEs… -- R&amp -- D capacity concentrates in the capital region -- Firms in Eastern and Central Slovakia are relatively well integrated in international patent co-operation networks.
• 6.5. Regional governance and policy mix for FDI-SME spillovers.
• 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.
• Description based on publisher supplied metadata and other sources.