Overview:

The digital economy in Slovakia is monitored by the European Commission through the State of the Digital Decade reports. The 2024 report indicates Slovakia made notable progress in enhancing digital public services for citizens and businesses, as well as advancing e-health initiatives. However, significant challenges persist in expanding gigabit network coverage and improving basic and advanced digital skills across the population. As of 2024, there has been a decline in digital skills, with 51 percent of the population possessing basic digital skills, below the EU average of 55 percent. The digital divide persists, particularly among older generations and in rural areas. The proportion of ICT specialists in total employment is 4.2 percent, slightly below the EU average (4.8 percent). Additionally, 14.9 percent of ICT specialists are women compared with the EU average of 19 percent.
Slovaks are increasingly using internet-based services, including e-government, although the use of online services like banking and shopping is still developing compared to EU peers. E-government services in Slovakia have grown, with an increasing number of public services available online. However, Slovakia’s e-government performance still lags EU leaders, and there is room for further improvements in terms of accessibility and usability.
The integration of digital technologies by Slovak small and medium-sized enterprises (SMEs) is still below the EU average, with many companies lagging in adopting advanced digital tools, e-commerce, and digital innovation. Slovakia plans to provide support to SMEs, particularly for the uptake of cloud, big data, and artificial intelligence (AI) technologies by building a network of European Digital Innovation Hubs (EDIHs) across the country. These centers will play a key role in increasing the digital intensity of enterprises and will help achieve the related Digital Decade targets.  
Government Initiatives 
Slovakia has undertaken significant efforts to boost the digitalization of its economy, with the Digital Transformation Strategy of Slovakia being a cornerstone of these initiatives. Key strategies and actions include:
•    Digital Slovakia Program: This program aims to modernize public administration, increase digital literacy, and enhance the cybersecurity landscape. Through initiatives such as e-government, the program is encouraging public institutions to make more services available online.
•    Investment in Digital Infrastructure: Slovakia has made substantial investments in improving broadband networks, particularly in rural and underserved areas. The development of 5G infrastructure is another area of focus, with the aim of enabling faster communication and laying the groundwork for future technologies like Internet of Things (IoT).
•    Innovation and Startups: The Slovak government has promoted the growth of digital startups through various incentives, support programs, and funding schemes, particularly for firms focused on technologies like artificial intelligence (AI), big data, and blockchain.
•    EU Funding: Slovakia has accessed substantial funding from EU digital programs such as Horizon Europe and Connecting Europe Facility (CEF) to support its digital transformation goals.

Slovakia plans to make significant investments to reach the Digital Decade objectives and targets. Slovakia set targets for 12 out of 14 key performance indicators (KPIs) and, in most cases, the targets align with the EU 2030 ambitions. The exception is Slovakia’s digital skills target, which falls below the EU’s target. Based on Ministry of Investment data, Slovakia has committed over EUR 2.3 billion (USD 2.4 billion), approximately 1.8 percent of its GDP, to its digital transformation efforts, as outlined in the National Digital Decade Strategic Roadmap. This investment is allocated across several key areas:
•    Digital Skills: EUR 254.86 million (USD 269 million), with EUR 4.07 million (USD 4.27 million) already allocated from the state budget and EUR 250.79 million (USD 263 million) from European funds.
•    Digital Infrastructure: EUR 115.37 million (USD 121 million), comprising EUR 0.7million (USD 0.73 million) from the state budget and EUR 114.61 million (USD 120 million) from European funds.
•    Digital Transformation of Businesses: EUR 781.40 million (USD 819 million), with EUR 173.29 million (USD 182 million) from the state budget and EUR 608.10 million (USD 637 million) from European funds.
Slovakia’s digital economy strategy and action plans indicate a strong focus on enhancing digital technologies and increasing digitalization across various sectors. Key focus areas include: 
•    Supporting SMEs and Innovative Businesses: The Slovak government is aiming to boost the digitalization of small and medium enterprises (SMEs) and foster innovation, which they expect to drive significant growth in the digital economy. 
•    Investment in Digital Technologies: Emphasis on advanced technologies like AI, 5G, and blockchain is likely to contribute to economic growth by improving productivity and creating new business opportunities. 
•    Development of Digital Skills: By improving digital skills across the workforce and education system, Slovakia aims to enhance its overall digital capabilities, which could positively impact economic growth. 
Although Slovakia has made progress during the last year, improvements have not been sufficient to keep pace with the EU average. Digital skills across the population, from primary school students to adults, need to improve to successfully meet the challenges of the digital transformation. Several national strategies underline the need to educate and upskill people in Slovakia so they can work with and use digital technologies. 
The National Concept of Informatization of the Public Administration for the years 2021-2026 outlines a vision for more reliable and user friendly digital public services, including e-health, and explicitly aligns with the Digital Decade targets in this domain. As set out in Slovakia’s Recovery and Resilience Plan (RRP), the Ministry of Investment, Regional Development, and Informatization (MIRRI) adopted a new strategic document, the “Action Plan for the Digital Transformation of Slovakia for the years 2023-2026.” The action plan presents measures to improve Slovakia’s digital performance, building on the 2030 Digital Transformation Strategy for Slovakia as well as the 2019-2022 action plan. It contains six priority areas: 
•    Institutional background (governance model).  
•    ICT specialists. 
•    Digital skills for young people and teachers. 
•    Digital skills for active labor market participants.
•    Proportion of girls and women in ICT. 
•    Digital divide and digital exclusion.  

The 2030 Strategy for the Digital Transformation of Slovakia framed national policies and specific priorities regarding the ongoing digital transformation of the economy and society. The strategy followed up on the priorities of the EU Digital Single Market. At the national level, it accelerated ongoing processes in terms of building the digital market and carrying out various measures tied to the most recent cross-sectoral policies of the EU. The strategy emphasizes new digital technologies such as artificial intelligence, the Internet of Things, 5G technology, big data and analytical processing of data, blockchain, and high-performance computers, which will eventually become a new engine of economic growth and competitiveness. Several areas were identified as necessary to multiply the potential of digital transformation, including the economy, society and education, public services, rural development, science, and research and innovation. The targets of the process are the citizens, whose everyday lives should become simpler, and entrepreneurs, whose businesses should be supported by various incentives and whose bureaucratic burden should be eliminated. 
As for digital government, Slovakia aims to launch and implement a “data-driven State” concept in public administration. The goal is for public administration to adopt decisions based on the best available knowledge. It is necessary to ensure that institutions know how to use real data and make data-based (and possibly automated) decisions. Transforming the functioning of public administration organizations and processes is also key, so that such analyses can be effectively used. The action plan also proposes the continuous deployment of fully automated public administration services, meaning that the system handles filings automatically based on selected criteria. 
The Slovak Ministry of Investments, Regional Development, and Informatization is the main ministry responsible for Slovakia’s digital transformation. More information can be found on the ministry’s website. 
 

Market Challenges

Slovakia continues to intensify its efforts to scale up its digital economy. However, the country does not issue reports or updates that track the implementation of the policies. The main barriers to enterprises integrating digital technology are continuing administrative burdens and limited awareness of financial instruments.
Regulatory Environment
Slovakia has made limited progress on efforts to improve the regulatory environment to support its digital economy. Efforts have been hindered by political dynamics, difficulty understanding central infrastructure components, limited institutional capacity, a complex and often ineffective strategic-legislative framework including for public procurement, and a sub-optimal level of ICT skills.
If Slovakia fails to address these weaknesses it could lead to undermining trust in the state and its democratic orientation, declines in quality of life and satisfaction indexes, and brain drain. To address these challenges, Slovakia will need to define what digital public services are required to meet the needs of both the state and its citizens. This vision must then be communicated and managed through competent governance, supported by a clear strategic-legislative framework, and implemented in a way that restores credibility and trust in the state. Key challenges include:

•    Cybersecurity
Cybersecurity is a critical aspect of information technology and digital infrastructure in Slovakia. The country recognizes the importance of safeguarding its digital assets against cyber threats. Overall, cybersecurity is a priority both for the government and the private sector and the country has taken measures to address cyber threats. Through a robust legal framework, national strategies, incident response mechanisms, public-private partnerships, education, and international cooperation, Slovakia aims to protect its digital infrastructure, critical systems, and citizens from cyber threats. Nevertheless, in recent years, Slovakia has seen an increased number of cyberattacks targeting all segments of the local economy and there are several gaps that needs to be addressed.
It is crucial for Slovakia to protect the safety of industrial technologies because of its large industrial and manufacturing sector. Cyber threats on industrial systems can have serious consequences, including business interruption, production losses and supply chain disruptions.
Government institutions are limited by obsolete ICT equipment. Lack of ICT and financial resources is compounded by a demanding system of slow-moving public tendering. 
In January 2025, Slovakia experienced a significant cyberattack targeting its land registry system. The Office of Geodesy, Cartography, and Cadaster of the Slovak Republic (UGKK), responsible for managing land and property data, was compromised, leading to the complete shutdown of its systems and the closure of physical offices. Agriculture Minister Richard Takáč described the attack as the largest in Slovak history. Slovakia’s real estate and mortgage markets were temporarily paralyzed, property transactions were stalled, and some public services were inaccessible. UGKK restored most services by March 2025. However, the attack demonstrated the critical need for robust cybersecurity measures to protect essential infrastructure and data.
In a separate January 2025, incident, Slovakia’s national health insurance company, Všeobecná zdravotná poisťovňa (VšZP), was targeted in a cyberattack. The attack raised concerns about the security of sensitive medical data and the potential disruption of healthcare services. In response, VšZP said healthcare services were not at immediate risk and personal data had not been compromised. The company emphasized its commitment to strengthening cybersecurity measures and protecting sensitive data. The attack underscored the growing threat of cyberattacks targeting critical infrastructure, particularly in the healthcare sector. 
In the private sector, implementing robust security measures and procedures helps minimize the likelihood of disruptions and losses of finance. According to a 2023 National Cybersecurity Survey, 43 percent of SMEs are managing their own cybersecurity issues, even though the legislation does not require them to do so, while more than one half (49.5 percent) of SMEs have no cybersecurity risks management plan in place.

•    Corruption
Slovakia ranked 59th in Transparency International’s Corruption Perceptions Index in 2024. International companies doing business with the Slovak Government or attempting to obtain required business licenses reported poor transparency in bureaucratic processes. Surveyed businesses reported corruption was widespread in courts, government contracting and public procurement, and in the healthcare system. While the legal system generally enforces property and contractual rights, decisions may take years, thus limiting the utility of the courts for dispute resolution.

•    Public Services
Slovakia has made progress in expanding the availability of digital public services for citizens and businesses. However, administrative barriers in public administration, including the public procurement system, remain high according to business surveys and international assessments. Slovakia’s public administration and public services have traditionally had a comparatively low level of digitalization, which has been a major barrier to the widespread take-up of digital public services by citizens and businesses. 
The EU eGovernment Benchmark 2024 indicated Slovakia is not making full use of ICT opportunities. Across all digital performance indicators, Slovakia fell below the European average – though Slovakia’s overall performance was similar to other neighboring countries. Investments are needed to improve the public administration’s efficiency and user-friendliness to reduce administrative burdens and improve the business environment. In addition, the public procurement of IT requires reforms and investments for enhanced efficiency.

•    Digital Skills
Significant challenges persist in improving basic and advanced digital skills across the population. As of 2024, 51 percent of Slovaks possess at least basic digital skills, below the EU average of 55 percent.  Only 22 percent of Slovaks have advanced digital skills, which is below the EU average of 27 percent. In Slovakia, 15 percent of enterprises provide ICT training to their employees, compared to the EU average of 22 percent. The rate of ICT specialists remains stable at 4.2 percent of total employment in the country. According to a 2022 Slovak government report, “more than 60 percent of the enterprises surveyed indicated that the digital skills of the enterprise’s production job applicants among school leavers were worse than required by the enterprise. For graduates in administration, 40 percent of enterprises have experienced worse digital skills compared to their requirements.
There is no publicly funded system to help Slovaks develop their digital skills. Therefore, only 2 percent of citizens have acquired digital skills through public education programs and digital education is based predominantly on employer-provided training. Key weaknesses in digital skills development include the absence of digital learning platforms; unprepared educational staff; and lack of testing and certification sites.
The Slovak education system is not on track to achieve the Digital Decade target for basic digital skills as curriculum reform and improvements in the university performance are still not completed.
Digitalna Koalicia (Digital Coalition) is a well-established and active national coalition for digital skills and jobs. It includes relevant ministries, universities, associations, tech companies, and initiatives that aim to increase the public’s digital competences. Additionally, the Slovak National Coalition and Slovak IT Academy coordinate the project IT Fitness Test, a large-scale testing scheme that helps Slovaks (especially students) evaluate their practical digital skills. The results show that students from schools that offer wider IT educational opportunities score better in testing.
Based on OECD 2024 data, approximately 13.3 percent of jobs in Slovakia are considered at high risk of automation, one of the highest rates among EU member states.

•    Brain Drain
Slovakia suffers from acute brain drain, or the loss of educated workers to other countries and a large percentage of young, educated Slovaks consider relocation abroad. The Institute for Public Affairs (IVO) reported that half of young, educated Slovaks are seriously considering relocating abroad, particularly to Austria or Czechia.
This ongoing trend poses challenges for Slovakia’s digital transformation, as the potential loss of skilled professionals could impact the adoption and development of digital technologies within the country. Businesses and organizations will not be able to use advanced digital technologies if talented digital experts leave the country.
The government plans to use reforms and investments under the EU’s Recovery and Resilience Plan to help develop digital skills and expertise among companies through measures such as digital and innovation vouchers and digital innovation hubs initiatives connected with the EU digital innovation hubs network.

•    Connectivity Infrastructure
Slovakia continues to improve its performance on Very High-Capacity Networks (VHCN), with the 2024 Digital Decade Country Report stating that 69 percent of households are currently covered by VHCN.  This figure compares to an EU average of 79 percent. Rural coverage is also below average, as VCHN covers only 35 percent of rural households

Digital Trade Barriers
U.S. companies have raised concerns about the regulatory environment in the EU, including Slovakia, where overly complex or restrictive regulations create barriers to business, particularly in digital sectors. These challenges are often associated with compliance costs, delays, and complex administrative procedures. Some EU regulations, including GDPR, could necessitate data localization, which may require U.S. companies to store or process data within the EU. While Slovakia has not implemented strict localization laws, these policies can still impact trade:
•    GDPR
U.S. companies must comply with strict data protection laws for handling EU citizens’ data. These requirements can be burdensome, especially for businesses reliant on cross-border data flows.
•    Digital Services Act (DSA) and Digital Markets Acts (DMA)
The EU’s DSA and DMA regulations impact digital service providers, including U.S. tech companies operating in Slovakia, that focus on content moderation, user privacy, and transparency.
•    Licensing and Trade Barriers
Slovakia follows the EU import/export licensing system, which may require permits for certain digital goods or services. Non-tariff barriers can exist for digital products, particularly related to compliance with EU standards.

Digital Trade Opportunities
Digital trade opportunities abound in Slovakia. By exploring these opportunities, U.S. businesses and entrepreneurs can tap into Slovakia’s growing digital economy, contribute to its further development, and effectively position themselves in the Central European market.

Cross-Sector Enabling Technologies
•    Supercomputer/Quantum Computing
The Ministry of Investments, Regional Development and Informatization (MIRRI) is moving forward with its plan to significantly boost Slovakia’s research infrastructure. The PERUN supercomputer project is now officially underway, with contracts signed with the winning bidder, Eviden Slovakia. The final system will have a planned capacity of up to 14.5 Petaflops and is designed to be among the most energy-efficient HPC systems globally. It is slated to be located at the Slovak Academy of Sciences campus in Bratislava. The project’s implementation has been in progress since October 2023, with the public procurement process concluding in September 2024. MIRRI’s commitment to enhancing supercomputing capacity is a strategic investment funded by the EU’s Recovery and Resilience Plan. The project also includes a smaller, complementary supercomputer cluster at the Technical University of Košice, as well as plans to procure a quantum simulator. The entire system is expected to be operational by the end of 2025. This development creates opportunities for U.S. companies to offer hardware, software, and complete solutions for building these advanced supercomputing and quantum computing centers.
•    Digital Skills Development
Slovak public administration lacks proper digital skills development. Digital skills are essential in the public sector to meet the challenges of digital transformation, but the necessary developmental tools are not currently available. Slovakia’s Recovery and Resilience Plan sets investment targets aimed at skills development for public sector IT and cybersecurity professionals. Achieving these targets will be challenging given the Digital Decade goal of providing online access to all key public services by 2030. 
Slovakia is interested in STEM (Science, Technology, Engineering, Mathematics) education.  Opportunities for U.S. companies exist in educational technology, online learning platforms, and professional development solutions aimed at upskilling the workforce.

Specific Industry Sub-Sectors
•    Financial Technologies
As part of the European Union, Slovakia has a stable regulatory environment and access to the EU market. Fintech companies can benefit from harmonized regulations and funding opportunities through EU programs. There is growing potential for U.S. companies in fintech innovations such as digital banking, blockchain technology, and financial management tools.
Slovakia is a rapid adopter of fintech solutions. Compared to other EU countries, Slovakia ranks above average in contactless payments and almost 85 percent of Slovakia’s population has an account in a financial institution. Slovakia is a good testing ground for new financial solutions, and numerous banks frequently use Slovakia’s competitive environment to test or pilot experimental projects on a smaller scale. 
In 2024, Slovakia’s Tatra Bank was recognized by the Global Finance Magazine as one of the world’s most innovative consumer digital banks for its mobile banking product which uses generative AI and machine learning to develop tailored customer spending plans.

•    Cybersecurity
U.S. cybersecurity companies have several opportunities to explore and contribute to the cybersecurity landscape in Slovakia. They can offer consultancy and advisory services to businesses and government entities in Slovakia including conducting risk assessments, developing cybersecurity strategies and policies, performing security audits, and providing expertise on best practices. 
Offering managed security services can be a lucrative opportunity in Slovakia. U.S. companies can provide outsourced cybersecurity monitoring and incident response.
Security software and solutions: U.S. cybersecurity firms can introduce and provide advanced security software and solutions to the Slovak market including technologies such as endpoint protection; network security; identity and access management; encryption; intrusion detection and prevention systems; and security information and event management (SIEM) solutions. Customized solutions tailored to local needs can be particularly beneficial.
Training and Education: U.S. companies can offer training and education in Slovakia to develop local cybersecurity awareness by providing special courses, workshops, and certifications to local agencies, businesses and institutions. 
Incident Response and Forensics: U.S. cybersecurity firms can also offer their expertise in incident response and digital forensics. For example, they can assist organizations in responding to cyber incidents, conduct investigations, and provide support in incident remediation and recovery.  
Collaboration with Local Partners: Partnering with established local players can help foreign cybersecurity companies understand the specific needs and requirements of the Slovak market and build trust among potential clients. Collaborating with local companies can be especially beneficial when applying for public procurement projects.

•    Internet of Things (IoT) and Smart Cities
The IoT market in Slovakia is expected to grow significantly in the coming years. According to Statista, a German data gathering platform, market revenue was estimated to reach USD 1.44 billion in 2025. Furthermore, IoT market revenue is expected to grow 15.04 percent annually from 2024 to 2029, peaking at a market volume of USD 2.511 billion in 2029. Among various subsectors, the automotive IoT segment was projected to dominate the market with a market volume of USD 377.88 million in 2025, indicating the potential demand for IoT solutions in the automotive industry.
Additionally, Slovakia is witnessing a surge in the adoption of smart city technologies, with a particular focus on improving energy efficiency and public transportation. The Smart Cities market was forecast to reach revenues of USD 112.94 million by 2025. This sector is expected to experience a compound annual growth rate (CAGR 2024-2029) of 16.40 percent, leading to a market volume of USD 206.90 million by 2029. Projects related to smart cities and digital transformation of urban areas present opportunities for U.S. companies specializing in IoT, smart grid technology, smart infrastructure, and urban digital solutions.

•    Efficient Public Administration and Digitalization
Slovakia’s Recovery and Resilience Plan (RRP) includes several public administration measures, including goals for increasing the efficiency and independence of the judicial system, decreasing corruption, digitalizing public administration, developing e-services for citizens and business, and improving cybersecurity. Slovakia will also facilitate several multi-country projects relating to the digital economy, including the European digital innovation hubs and European blockchain services infrastructure. Almost 16 percent of the total RRP fund’s support for Slovakia focuses on efficient public administration and digitalization.

•    REPowerEU
Slovakia’s RRP includes six reforms, and eight investments aimed at reducing the country’s dependency on fossil fuels, particularly those imported from Russia. These measures focus on promoting and deploying renewable energy sources (particularly by improving environmental permitting and modernizing and digitalizing both domestic and cross-border transmission systems); improving building energy efficiency (governmental, public, and private); developing sustainable passenger transport; and improving educational systems and skills relevant for the green transition.

•    E-Health and Medical Sector
E-health activities are partially available in Slovakia. While e-prescriptions are fully functional, e-medical records, and e-examinations are not fully implemented. Slovakia is gradually implementing the Diagnosis Related Group (DRG) classification system as a reimbursement mechanism for institutional care.  Slovakia has already implemented the DRG for one-day healthcare incidents and is working to extend it to follow-up care.  
Slovakia’s efforts to develop its digital health sector creates opportunities for U.S. companies in telemedicine, health data analytics, and electronic health records. U.S. firms can contribute to healthcare innovation through partnerships with Slovak medical institutions and technology providers.

Digital economy-related trade events
Regional events focusing on e-commerce are limited to Upterdam, and New Retail Summit.