The Czech Republic – The country for your sustainable investment

Czech Republic's research and innovation potential has strengthened significantly in recent years. With effective government support, bilateral cooperation between the business sector and researchers is becoming one of the pillars of the Czech economy. 

Not only have we succeeded in increasing private sector expenditure on research, but we have also stabilized public spending. Even though the public spending in Czech Republic has a tendency to decrease, the budget for Research and Development for the year 2024 remained on the same level and is going to be 1,5 billion EUR. The Czech Republic offers a high-quality network of scientific infrastructure facilities whose construction was financed in the past through European funds. In terms of the number and quality of its research centres, the Czech Republic is one of the EU's leaders. The ecosystem of European research infrastructures has evolved over the past two decades. Research infrastructures are a place of global, European and national cooperation, a place for unique experiments, and a source of knowledge used by industry and other research organisations on the principle of open access across the international research area. The Czech Republic strives to provide Czech and foreign researchers with state-of-the-art equipment to achieve excellent results.

In the current context, the Ministry of Science and the Council continue to give full support for the stability and development of the R&D system to strengthen its capacity to respond appropriately to unexpected risks and threats. Subsequently, the National Research, Development and Innovation Policy 2021+ was adopted, which enables flexible financial support for specific research programmes aimed at addressing defined threats with a global impact.

The RD&I environment has been developing vigorously in the Czech Republic in recent decades. Total expenditure on research and development in the Czech Republic has increased over the long term; in 2022 1.96 % of GDP was spent on R&D. Businesses invested nearly 3.3 billion EUR which is 12% more than previous year, and EUR 1.5 billion was funded from public money. The involvement of respected foreign scientists in Czech research institutions is one of the most important forms of international cooperation that we have been able to develop recently. With ongoing support from the government, RD&I Council is reinforcing its emphasis on scientific diplomacy with the aim of presenting the Czech Republic in selected regions as a country supporting public-private cooperation, including support for foreign investment. Research is now an important employer in the Czech Republic. In 2022 slightly below 85 000 people (FTE) worked in research and development.

Furthermore, a government-approved change in the methodology for evaluating research quality in accordance with international standards (Methodology 2017+) became a key step in strengthening effective cooperation between the research sector and business. Another tools for government support of R&D are new law on research, development, innovation and knowledge transfer as well as new strategic orientation on new emerging technologies such as quantum, chips and artificial intelligence. In line with the state investment policy, those companies whose activities are linked to R&D receive investment incentives in the Czech Republic. All of the aforementioned achievements of Czech science policy are supported by the Innovation Strategy of the Czech Republic 2019-2030. At the same time, science and research comprise one of the declared priorities of the government. Research infrastructures and support for them undoubtedly belong to this priority. However, it is important that they bring forth cutting-edge science and, where possible, that they are attractive partners for innovative private companies.

Traditional Czech industry must take advantage of the challenges of, among other things, IT, robotics, cybernetics and biotechnology, and strengthen its competitiveness on the international scale by introducing new technologies. Connection to the digital economy, where most private-sector R&D expenditure is heading, can help in this respect, as can existing support for the growth of the national start-up and spin-off environment. The automotive sector has the largest share of Czech industry and its exports; this is also reflected in its research and development.

Inducements for foreign scientists

Today the Czech Republic can boast numerous excellent research organisations and research teams at universities, which are beginning to significantly impact the quality of research. Currently, research centres aim to be able to generate top-level results over the long term, employ top foreign scientists, and to be attractive to private innovation firms, which should also increasingly participate in their operation and financing. Research facilities would then complementarily provide technological expertise that keeps step with the advanced international environment. Research infrastructure facilities and centres thus offer a suitable opportunity, for example, to form consortia with international participation or other forms of cooperation where larger and smaller companies will join together with research institutes and universities.