Download Czech Experience

Knowledge Economy Forum V
Prague 2006
Jiří Havel
Vice Prime Minister of the Czech Republic
Plan
• Introduction
• Czech Experience:
– Necessary conditions for development
– Knowledge oriented measures
» Achievements
» Measures to Proceed (what we have learned)
• Closing
Introduction
• The need for knowledge-based economy
– Innovative investment
– Labour force with high qualification
» Mobile
» Adaptable
» Language skills
• From centrally planned to KE - transition
• World Bank assistance – KEF
Czech Experience
• Several necessary measures - preconditions
–
–
–
–
Assuring stability
Improving the legal framework
Promote ICT
Developing HE infrastructure
• Knowledge oriented measures
– Attract knowledge when missing
– Expanding and absorbing knowledge when attracted Cluster, Platform
– Create knowledge as needed
Czech Experience - Necessary Measures (1/2)
• Assure stability of investment climate
Inflation rate (%, source: CZSO)
– Liberalisation
12
– Better regulation
– Stable prices
10
8
6
– Fiscal discipline
4
2
0
1996
1997
1998 1999
2000
2001
2002 2003
2004
2005
Czech Experience - Necessary Measures (2/2)
– Achievements:
• Improved legal framework and administration
–
–
–
–
Recodification of bankruptcy law
Single contact place for entrepreneurs
Increasing number of internet users
Decreasing prices of home internet access
– Still needed:
• Further decrease the burden on business
– Regulation Impact Assessment
– Business impact assessment
• Extend the PC and internet availability for schools
Czech Experience - Attract Knowledge (1/_3)
• Attracting knowledge
– Investment incentives
– Clustering
– R&D expenditures with 100 % dep. rate
FDI inflow per capita, period 1995 - 2004 (USD, source: CzechInvest)
5 000
4 000
3 000
2 000
1 000
0
Czech Republic
Hungary
Slovakia
Poland
Czech Experience - Attract Knowledge (2/3)
The evolution of the Trade balance
deficit (in bln. CZK, source: CZSO)
100
50
•
•
•
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
-50
-100
Appreciated currency
But positive Trade balance
Higher added value production
-150
-200
GDP Growth (quarterly in %, source:CZSO)
8,0
7,0
5,0
4,0
3,0
2,0
1,0
05
III
.2
0
5
I.
20
0
04
III
.2
0
4
I.
20
0
III
.2
0
03
0,0
3
Continuous growth
Positive effect of the past
investment
I.
20
0
•
•
6,0
Czech Experience - Attract Knowledge (3/3)
– Still needed:
• Investment incentives
– Subsidies in line with the additionality principle - promote
investment activities
– Subsidies for job creation - problematic
» European style labour market
» Incentive for production with lower added value (labour
intensive)
» More labour - lower reward - slower innovation
– Keep a slower track for Incumbents
» support high-tech production/services enterprises in
innovations, R&D expenditures with 100 % dep. rate
– Support dynamic Startups
» Venture Capital, Mini-grants, Matching Grants
Czech Experience - Expand and Absorb
Knowledge
• Expanding and Absorbing knowledge
– Assure access to and the protection of IPR
– Support the formation of Clusters
» the service for Incumbents
» the learning of potential Startups
– Support the communication from consumer to
researcher and vice versa
» support technological Platforms
» create a “knowledge market-place”
» information exchange and feedback
Czech Experience - Create Knowledge
– Achievements:
• Promoting Higher education
– 100.000 students increase in tertiary education since 2000
– Reform of university financing
– Increased funding by 50 % in the last 4 years (from 18 to 27 bln
CZK)
– The public expenditures for science increased by 46 % since
2002 (12,5 to 18,2 bln CZK)
– R&D evaluation emphasises scientific excellence and practical
results
• BIC Plzen (18 companies, e.g. Panasonic SW, 77
employees, 1925 m²)
• VUT Brno – Technological incubator (15 companies e.g.
YSoft, 90 employees, 521 m²)
Czech Experience - Create Knowledge
– Still needed:
• Promoting Higher education
– Project oriented funding
– Increase the number of the general secondary school students
(35 % of all secondary level students in 2010)
– More technical studies, keep the studies of arts
• Mobility of students, researchers
– Make the students mobile (study visit abroad programme)
– Get the brains back (motivation for return from abroad)
– Take care of them (support of projects after the return)
» more young scientists
» the programmes of Ministry of Education, Youth and Sport
of the Czech Republic
Czech Experience - Create Knowledge
– Still needed:
• Gradual increase of R&D expenditures to reach 3% of
GDP in 2010 (1/3 from public sources) – when
demand for knowledge is enough stimulated
• More finance to collaborative research (subsidies, tax
incentives)
• Use EU structural funds (Business incubators,
Transfer technology centers) – 12 bln CZK
Closing
– This event was inspected by
• R&D Council of the Czech government
• Government Council for Human Resources
Development
– Follow-up conferences:
– How to proceed in the R&D financing? Seminar in Michnov
Palace, Prague on March 31st 2006, and
– 2nd International Conference: Knowledge-Based
Economy, National Forum on Knowledge-Based Economy,
organised by The Institute for Finance and Administration on
May 23rd 2006 and is held under my auspices.
The end of presentation
Thank you for your attention.
Hope to see you soon in
Prague again.