Martin Lábaj

Qualitative input-output analysis and national innovation system in Slovakia

The aim of this paper is to identify national innovation system (NIS) in the Slovak Republic by the means of sub-system minimal flow analysis (SMFA). SMFA revealed that the core of the NIS in Slovakia is based on innovation activities in rubber and plastic industry, basic metals production, chemical industry and machinery and equipments production. It also revealed underdevelopment of Slovakia in the structure of production in relation to perspective technology fields as well as in the level of technology flows. The results could help government to support innovative entrepreneurs operating in perspective technology fields. Innovation policy based on these results could support the economic growth founded on innovation driven entrepreneurship.

Market structure and competition in transition: Results from a spatial analysis

ABSTRACT The present article provides first microlevel (indirect) empirical evidence on changes in entry barriers, the determinants of firm profitability as well as the nature of competition for a transition economy. We estimate size thresholds required to support different numbers of firms for several retail and professional service industries in a large number of geographic markets in Slovakia. The 3 time periods in the analysis (1995, 2001 and 2010) characterize different stages of the transition process. Specific emphasis is given to spatial spill-over effects between local markets. Estimation results obtained from a spatial ordered probit model suggest that entry barriers have declined considerably (except for restaurants) and that the intensity of competition has increased on average. We further find that demand spill-overs and/or the effects associated with a positive correlation in unobservable explanatory variables seem to outweigh negative spill-over effects caused by competitive forces between neighbouring cities and villages. The importance of these spatial spill-over effects differs across industries.

Market Structure and Competition in the Health-care Industry: Results from a Transition Economy

The present paper provides first empirical evidence on the relationship between market size and the number of firms in the healthcare industry for a transition economy. We estimate market-size thresholds required to support different numbers of suppliers (firms) for three occupations in the healthcare industry in a large number of distinct geographic markets in Slovakia, taking into account the spatial interaction between local markets. The empirical analysis is carried out for three time periods (1995, 2001 and 2010) which characterise different stages of the transition process. Our results suggest that the relationship between market size and the number of firms differs both across industries and across periods. In particular, we find that pharmacies, as the only completely liberalised market in our dataset, experience the largest change in competitive behaviour during the transition process. Furthermore, we find evidence for correlation in entry decisions across administrative borders, suggesting that future market analysis should aim to capture these regional effects.The present paper provides first empirical evidence on the relationship between market size and the number of firms in the healthcare industry for a transition economy. We estimate market-size thresholds required to support different numbers of suppliers (firms) for three occupations in the healthcare industry in a large number of distinct geographic markets in Slovakia, taking into account the spatial interaction between local markets. The empirical analysis is carried out for three time periods (1995, 2001 and 2010) which characterise different stages of the transition process. Our results suggest that the relationship between market size and the number of firms differs both across industries and across periods. In particular, we find that pharmacies, as the only completely liberalised market in our dataset, experience the largest change in competitive behaviour during the transition process. Furthermore, we find evidence for correlation in entry decisions across administrative borders, suggesting that future market analysis should aim to capture these regional effects.

Drivers of the Change in Social Welfare in European Countries

Recent discussions about the definition of economic growth in terms of welfare beyond GDP suggest that it is of urgent need to develop new approaches for measuring the economic performance of firms and national economies. For this purpose the DEA methodology is used by simultaneously taking into account economic as well as social and environmental indicators. SBM DEA models with restricted weights are used in order to analyse the impact of different strategies and goals of economic policy for measuring of social welfare. Using Malmquist productivity index the drivers of social welfare change over the period of 2003–2012 for 25 European countries are identified. This approach allows us to decompose the overall change to change in economic, environmental and social component. It can be shown that the main driver of the increasing social welfare in Europe was the environment-saving change of technology.