AmCham Slovakia

Competitiveness refers to the ability of the country to compete effectively in global markets thanks to high productivity. Productivity impacts economic growth and the wealth of the country's citizens. Competitiveness means economic growth that stands on 5 key pillars. Trustful institutions, motivational business environment, talent, innovation & technologies, and common vision, are the key drivers of economic growth and, thus competitiveness. 

From the societal and economic perspective, Slovakia has recorded a steady decline in all relevant global indicators and indexes over the past few years, including reports from the European Commission, OECD statistics, IMF, the Global Competitiveness Index by the World Economic Forum, and the Rule of Law Index.

We are a country caught in the trap of middle-income countries with an insufficient economic model and weak growth to continue in economic convergence towards at least the average of the European Union. In the current situation when the EU introduced Draghi’s report with the hope of boosting EU competitiveness, the quality and availability of human capital as well as the stability and predictability of the business environment prepared by the good institutions are more than important if Slovakia wants to increase its competitiveness.

The era of rapid world trade growth looks to have passed, with EU companies facing both greater competition from abroad and lower access to overseas markets. Europe has abruptly lost its supplier of energy. All the while, geopolitical stability is waning, and our dependencies have turned out to be vulnerabilities.

Technological change is accelerating rapidly but Europe largely missed out on the digital revolution led by the internet and the productivity gains it brought. The EU is weak in emerging technologies and turning innovations into products that are the drivers of future growth.

Slovakia is part of global changes propelled by technological developments erasing existing barriers, and changing environmental conditions defining the quality of life of future generations. Restoring Slovakia’s position in the global competition requires a dramatic change in economic policy and the overall management of the country.

Responsible governments invest in research and development, in the skills of future generations, defining an ambitious vision of the state supported by social consensus, and applying innovative business regulations based on the principles of simplicity, comprehensibility, transparency, and flexibility. Institutions that we can trust, business environments that we can easily operate in, skills & talent that can create innovation or implement quickly technological advancements with a common vision to live a good quality of life.

The top-performing countries are known for their robust economies, strong institutions, and innovative capabilities. Rapidly growing economies have a more educated workforce, a lot of capital, and the most advanced technological practices in the world. This all results in welfare, great quality of life, happiness, and savings which may be further used further for technological investments.  

AmCham Slovakia´s Year of Competitiveness has just begun.

Stay tuned for more details about the flagship event in May 2025

Trust in Institutions

Trust in public institutions is a critical factor for Slovakia’s competitiveness, shaping both public and private sector efficiency. According to the 2024 OECD Trust Survey, only 31% of Slovaks report high or moderately high trust in their national government, significantly below the OECD average Such low trust erodes public engagement and complicates the implementation of necessary reforms, particularly in areas like innovation, digitalization, and sustainability. Addressing this trust deficit requires prioritizing transparency, combating corruption, and ensuring fairness in decision-making processes. By strengthening institutional integrity and restoring citizen confidence, Slovakia can improve its governance framework, thus enhancing its competitiveness in attracting investment, fostering innovation, and driving economic growth. 

Good Business Environment

Slovakia proved over time to be an economy with a concrete strategy to attract investments. Whether it was the reasonable cost of labor going hand in hand with the good productivity level, later it was the flat tax rate, state subsidies, and a skilled, educated workforce. Today, sector-wise, Slovakia stands on the three main pillars which are automotive, electrotechnical, and shared services. What strategy does Slovakia have to be competitive in the future? How is Slovakia ready to go hand in hand with the competitiveness strategy that the EU recently presented?     

Sustainability, Green Investments, Inflation Reduction Act

With changes in the U.S. government, there may be a shift in priorities, with a stronger focus on traditional energy sources like oil and gas, potentially reducing the emphasis on green investments. In contrast, the EU remains committed to the Green Deal, continuing to prioritize sustainable growth, clean energy technologies, and green investments. As part of the EU, Slovakia stands to benefit from these ongoing initiatives and funding. However, in light of shifting global policies, Slovakia will need to effectively leverage EU green opportunities to maintain its competitiveness while adapting to a changing international investment landscape.

Local Investment Into Innovation As A Solution – Biotech, Space, Smart Technologies

Europe is failing to translate innovation into commercialization. Innovative companies that want to scale up in Europe are hindered at every stage by inconsistent and restrictive regulations. As a result, many European entrepreneurs prefer to seek financing from US venture capitalists and scale up in the US market. Between 2008 and 2021, close to 30% of the “unicorns” founded in Europe – startups that went on the be valued at over USD 1 billion – relocated their headquarters abroad, with the vast majority moving to the US. Investing locally in smart technologies is a vital step to addressing Europe's challenges in turning innovation into successful commercial ventures. To prevent the continued migration of promising startups to markets like the U.S., Europe must create a more supportive environment for businesses to grow and scale. This means simplifying regulations, improving access to venture capital, and incentivizing research and development in areas such as IoT, AI, and sustainable energy. Slovakia, with its strengths in industries such as automotive, smart cities, and digital health, is well-positioned to lead by example. By fostering collaboration between government, academia, and the private sector, Slovakia can help retain talent, keep innovative startups in Europe, and strengthen the continent’s global competitiveness in smart technologies.

Facts & Figures About Slovakia