The Development of the Innovative SMEs in Slovakia in the Context of Macroeconomic Environment
The Development of the Innovative SMEs in Slovakia in the Context of Macroeconomic Environment

Summary/Abstract: EU integration brought expressive economic development to Slovakia. The main drivers of the economic growth have been export-oriented FDIs. Slovak government pursues provision of the favorable FDI-friendly business environment for keeping continuance of the productive capital into domestic economy. Nevertheless, the FDIs represent giant multinational companies and the Slovak economy is in a stage of development that it needs the advancement in the productivity growth in the remaining sectors of the economy addition to export-intensive FDIs. From this token, development of the SME in Slovakia is important for transition of the Slovak economy up to next level. In this article, I analyze the effects of the macro-economic variables such as financial development, export growth, innovativeness, and the EU structural funds on SME development in Slovakia. I deploy regression analysis to measure these effects. The lower interest rates and higher export growth positively contributes to development of innovative SMEs. The inadequacy of the organizational capacity and innovation structure of SMEs impedes them benefits from EU funds and Innovations.

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