Unlocking Economic Potential:

Abstract

State aid, which encompasses regional investment aid, is a complex and multifaceted field, and it attracts experts from a number of disciplines, who seek to explore its intricate dynamics, regulatory frameworks, and impacts on market competition, innovation, and regional development. This paper provides a comprehensive overview of approved regional investment aid in Slovakia. The study draws on a unique dataset covering the period January 2018 to August 2023, sourced from the Ministry of Economy of the SR. During the monitored period, decisions or amendments to decision on regional investment aid in the amount of 213.317.603 € was issued in Slovakia. In the analysed sample, investment projects up to 50 mil. € predominate. The results indicate that during the observed period, the highest amount of regional investment aid was approved in Košice and Prešov regions (East Slovakia) which exhibit significant economic disparities compared to more prosperous areas within the country. From the comparison of various forms of regional investment aid, it is evident that in all eligible regions the highest amount was approved in the category of tax relief. The duration of the administrative procedure for approving regional investment applications decreased during the observed period. This paper also considers the pivotal role of evaluations of regional investment aid. Periodic evaluations serve as a barometer of policy performance and effectiveness. Keywords: investment incentives; regional investment aid; competition; regional disparities