Abstract The paper analyses the differences in the technology and technical efficiency of Czech and Slovak processing companies in the period 2003–2012. A random parameters model with sector and country dummies is employed to capture sectoral and national differences in technology. The paper addresses two research questions. The first question relates to technology. In particular, we investigate whether inter- and intra-sectoral differences, as well as differences between Czech and Slovak processing companies, are pronounced. The second question considers the development of technical efficiency. The paper analyses the differences between the technical efficiency of Czech and Slovak processing companies and the sources of its development.