Regional Investment Aid and Its Impact on Economy: Case of Slovak Republic

The paper reviews the state aid policy with respect to regional investment aid in the Slovak Republic. It focuses on the new Law on the Regional Investment Aid that regulates conditions for providing regional investment aid in Slovakia. We analyse conditions and criteria of regional investment aid by companies. The paper shows the positive effects on the development of the region and business support, foreign trade, innovation and positive socioeconomic impacts. The paper illustrates that regional investment aid is one of the factors influencing the decision to invest or to locate in a disadvantaged region in Slovakia. In this context we are of the opinion, that state aid should primarily be provided to SMEs, because the beneficiaries of the aid achieve good economic results, whereby their competitiveness on the market is enhanced. SMEs with no economic support are not in a position to face a strong competition challenge. The result of this scientific thesis is to evaluate the economic impacts of provided regional investment aid on Slovak economy and identification of criteria, which have an impact on the process of the regional investment aid.