Pictured from left: Director of the Department of Education, Innovation and Public Finance of the National Implementation and Coordination Authority (NIKA) Peter Goliaš, Prime Minister Ľudovít Ódor, and VAIA Director General Michaela Kršková at the presentation of the National Strategy for Research, Development and Innovation 2030 in Bratislava on May 23, 2023. (source: TASR)
Liberal economic reforms accompanied by an influx of foreign investment in the early 2000s resulted in strong economic growth that earned Slovakia the nickname the ‘Tatra Tiger’.
Today though, the model of low costs combined with cheap, skilled labour seems to have run out of steam, and Slovakia is looking for a new impulse to drive economic growth and help it catch up with its European Union peers.
But while experts say innovation is the best way to go, Slovakia’s current innovation capacity, as judged by international comparisons, is low. To tackle this problem the government has adopted the National Strategy of Research, Development and Innovations 2030.
“Finally, for the first time, we are going to systematically address this extremely important topic for Slovakia,” said Prime Minister Ľudovít Ódor in late May when the Research and Innovation Authority (VAIA) at the Government Office presented the strategy to the professional and general public.
“We have no other option but to change the approach to talent, innovation and the future. Through this strategy, we will do everything we can to create a successful future for Slovakia,” Ódor added.
Need to rethink growth model
Living standards in Slovakia remain below those of most Western countries and have actually fallen further behind in the last few years due to the effects of the Covid pandemic, the war in Ukraine and the energy crisis.
This has left the country struggling with the so-called middle-income trap and prompted a rethink of its current growth model, which was based on the inflow of foreign investment concentrated mainly in assembly workshops in industry, the National Bank of Slovakia (NBS) wrote in its Structural Challenges 2023 document, published in mid July. “Although this model has brought significant development to the Slovak economy, its potential has recently been exhausted,” the document reads. “Catching-up with EU countries again requires a transition to a new economic model based on innovation.”
Poor innovation rank
Innovation capacity in Slovakia is poor, as evidenced by the country’s unflattering position in international innovation rankings.
