R&D

The volume of investment in research and development in the Czech Republic increases each year. In 2006 CzechInvest assisted eleven international companies that had decided to establish research and development centres here; the year before, eight such centres were opened. With CzechInvest's assistance, 69 foreign and domestic firms have established technology centres in the Czech Republic since 2002. While much of the R&D in the Czech Republic spun-out from manufacturing operations, increasingly, companies are establishing R&D centres without having a manufacturing presence.  This is a clear vote of confidence by international companies in the Czech R&D and business climate along with the legal framework and intellectual property environment.

Ideal conditions for your R&D project

Why is the Czech Republic attractive for these investments? The key factor is the country's skilled workforce, which is due to the country's long tradition of technical education. The number of graduates in technical fields as a proportion of total graduates is one of the highest in the world. Czech universities also see collaboration with the private sector as a priority. For example, at the Czech Technical University in Prague the company Rockwell Automation operates a laboratory for the development of control software, while STROM telecom has two research and development centres. The strength of Czech technical education lies in the secondary schools, however. Approximately 90% of the Czech population has attained at least upper secondary education. The system of vocational training centres and secondary technical schools is well developed and places great emphasis on practical training in workshops and cooperating companies.

Another reason the investors choose the Czech Republic is its high-quality infrastructure for R&D. Nearly 50 science and technology parks, innovation centres and business incubators have been opened throughout the country and more are at various stages of development. These are suitable for both larger R&D investments and small innovation projects. To learn more about possible locations for your R&D project and for information on finding R&D partners, check out the R&D partnership opportunities in the Czech Republic.

Support for R&D

Over the past ten years, Czech public spending on R&D has increased from 0.95% of GDP to 1.42%. Government institutions support R&D activities with various tools:

• Deduction of all R&D costs - companies can deduct R&D costs from their tax base and at the same time include them in eligible costs.
• Grants from the National Research Programme
• Investment incentives to support companies setting up or expanding technology centres and centres for industrial research and development (the Framework Programme for Support of Technology Centres and Business Support Services).
• Grants provided from EU structural funds covering the development of educational systems for R&D, development and upgrading of R&D infrastructure and support provided to small and medium-sized enterprises for innovation projects.

Do not hesitate to contact us at fdi@czechinvest.org to find out more about R&D investment opportunities in the Czech Republic.