Research and development (R&D) and its results are one of the most important factors for ensuring the competitiveness of the economy of developed countries. For this reason, the promotion of research and development attaches increasing importance.
Innovation is not new to the Czech Republic. Czech academics and entrepreneurs have been successfully exploiting new ideas for generations. What is new is that the Czech Republic is now widely recognized as a centre of profitable innovation and technological entrepreneurship. Moreover, innovation throughout the economy is now being stimulated and sustatined by both Czech and international companies.
The Czech Republic has attracted a large amount of foreign direct investment (FDI) since 1990, making it one of the most successful transition countries in terms of FDI per capita. The introduction of investment incentives in 1998 stimulated a massive inflow of foreign direct investment in greenfield and brownfield projects. The Czech Republic`s accession to the European Union in 2004 further boosted investment.
Why the Czech Republic?
- Czech Republic has a long tradition in technical education, one of the higest in the world.
- The “knowledge pipeline” in the Czech Republic is of higher quality than in most western European countries, enhanced by stronger enrolment in secondary education and evidenced by a higher level of performance in mathematics tests at the secondary level and a proportionately higher number of tertiary-level science and technology graduates.
- The skilled and disciplined Czech workforce is ready to help companies achieve higher levels of productivity.
- The technical universities have a special interest in the establishment of highly sophisticated industries in which their graduates can work, and to which they can sell research and other services. In the last ten years, a number of Business Innovation Centres (BICs) and Science and Technology Parks have been set up.
- Czech Republic has a network of scientific and research institutions linked to universities. For example Ostrava Science & Technology Park co-operates with VŠB – Technical University Ostrava, which is one of the leading Czech universities.
- Foreign direct investment in all sectors and from all countries is welcome and there are no restrictions on the level of investment or ownership.
- The Czech Republic can offer to investors R&D and business support services, such as software development, aid from European Union funds, particularly from the Operational Programme Enterprise and Innovation, for which CzechInvest is responsible.
Totally 136 investment projects were initiated in the Czech Republic last year in the area of R&D, 158 in business support services and 56 in manufacturing. CzechInvest is able to identify real estate opportunities mainly involving industrial properties and facilities suitable for business support services or R&D. Nearly half of all investments obtained by CzechInvest last year are focused on research and development. With CzechInvest's assistance, 520 investment projects concluded since 1993 up to first half of 2012.
National policy for R&D&I of the Czech Republic for 2009 - 2015
The government of the Czech Republic approved the National policy for research, development and innovation of the CR (NPRDI CR) for years 2009 - 2015 that substitutes the NPRDI CR for 2004 - 2008 and the National policy of innovation for 2005 - 2010. The objectives of the National policy of research, development and innovation of the Czech Republic for 2009 — 2015 are the following:
- Implement strategic management at all levels
- Focus public support on sustainable development
- Enhance effectivity of the system of public support for R&D
- Use R&D results in innovation and improve the cooperation of public, and private sector in R&D
- Improve the participation of the Czech Republic in international cooperation in R&D&I
- Ensure quality human resources for R&D&I
- Create an environment stimulating R&D&I in the Czech Republic
- Ensure links to other policies
- Thoroughly evaluate R&D&I system
Centre for management of R&D
Who does research and technology development in the Czech Republic?
See more information here.
Over the past ten years, Czech public spending on R&D has in-creased from 0.95% of GDP to 1.86% in 2011.
Total spending on science was around 14 billion CZK in 1995. In 2011 the total increased spending on R&D to 70.7 billion CZK. In ten last years, businesses, public universities and public research institutions have made their own R & D to total about 480 billion CZK. Proportionate growth of financial resources has increased the number of entities in research and development effort. In 1995 it was 570 in 2007 subjects were enrolled in 2021. Most of the funds by type of research and development activities in 2009 accounted for experimental development (29.9 billion CZK, ie 42%), which is connected with the fact that the largest amount of R&D funds were used in the business sector. In basic research, which dominates the government and the university sector, were identified 26% (CZK 18.1 billion) and applied research, then the remaining 32% (CZK 22.8 billion).
In 2004, the country became a member of the European Union, which spurred an additional increase of support for science and research. The country has gained access to a variety of European funds and programmes, such as EU Structural and Cohesion Funds. These funds can be used particularly for development of R&D infrastructure and companies’ innovation activities (for more information about the support of projects in the Czech Republic please visit our websites).
Active search for new investments into one of the nine key sectors and business development in the Czech Republic – this is the aim of the CzechInvest agency. The list of priority sectors was created following a detailed analysis of the Czech economy and its future prospects. It includes the field of biotechnology as well as business support services automotive and aviation industry. It comprises manufacturing as well as, above all, research and development and services.
See more information here.
Brochure: the sector at a glance • benefits of the CR • Research and Development in the Czech Republic
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