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As a result of its long industrial tradition and ability to compete on the global level, the Czech Republic has achieved one of the highest concentrations of automotive manufacturing, design and R&D activity in the world. With passenger car production at 134 vehicles per 1,000 persons in 2017, the Czech Republic has maintained its supreme position among world automotive leaders in terms of per-capita output. Skoda Auto is the most significant Czech carmaker.
The Czech Republic has a long aviation tradition dating back to the early 20th century and has always had a strong presence in the sector. Over the years, the country has made a name for itself based on outstanding quality, reliability and innovation in the industry. From basic production to final aircraft assembly and cutting-edge R&D programs, the local aerospace industry has progressed significantly and simply cannot be overlooked.
The Czech engineering sector has been transformed over the past twenty-five years by globalisation, technology and the growth of other emerging markets. The Czech Republic has responded to these fundamental changes by attracting new investors and moving its manufacturing facilities and activities up the value chain to become the strategic hub of choice for global companies.
Electrical Engineering and Electronics
Electrical engineering and electronics is a fast-growing sector due to digitization and miniaturization. More than anything else, the success of the electronics sector in the Czech Republic is based on its long tradition here and the extensive skills of its employees. Firms based in the Czech Republic are active in every possible field of the industry, but are particularly strong in manufacturing and R&D activities.
The Czech Republic is one of Europe’s top locations for ICT investments. Repeatedly recognised by various researchers, this fact is confirmed by the strong inflow of high-value-added projects of the world’s top ICT companies and is fuelled by the country’s tradition of excellence in technical fields. The list of successful investors in the country includes Skype, DHL, Tieto, Red Hat, Solarwinds, Oracle, IBM, CA Technologies and many more. Besides foreign investors, there are many internationally successful Czech ICT companies, such as Avast/AVG, GoodData, Y Soft, STRV and Seznam.cz.
Business Support Services
The CEE region is still by far the world´s most popular destination for business services operations. The Czech Republic is one of the leaders in this sector. The most frequently shared services are financial, accounting and IT services and customer support. The shared-services centres of DHL, Accenture, Novartis, Exxonmobil, IBM and more than 240 other companies employ over 89,000 specialists in the Czech Republic. The main reasons for placing SSCs in the CR are the strong potential of graduates and professionals, high-quality office space and cosmopolitan society.
The Czech Republic has established its own respectable position in the world of nanotechnology thanks to its industrial tradition and well-developed research infrastructure. The Czech company Elmarco became the first supplier of industrial-scale nanofiber production equipment in 2004. Czech companies are highly competitive on the global scale – CRYTUR, IQ Structures or Contipro.
As the country that laid down the principal laws of heredity, introduced the contact lens to the world and successfully developer the compounds on which current anti-AIDS drugs are based, the Czech Republic is an attractive location for manufacturing and contract R&D operations. Examples of global companies in the CR include Zentiva, Novartis or MSD.
The Czech Republic has become the leading country in Central and Eastern Europe with comprehensive and prospective investment conditions targeted specifically at clean technologies. The CR ranks among the global leaders in construction of smart buildings. An example is CTP Invest´s Spielberk Tower. The Czech country has been chosen for instance by ABB, one of the world´s leading companies in the area of automation and energy.
Renewable Energy Generation
The Czech republic did a great deal in abiding by the EU´s strategy for sustainable development that calls for a „Smarter and Cleaner Europe“. Investors are keen to invest in the Czech Republic thanks to the country´s long history of manufacturing in the RSE sector dating back to the invention of the Kaplan turbine and Tesla´s production of solar cells. There are also many modern technology centres for R&D, Nupharo Park or Centre of Intelligent Power Engineering.
Energy Efficiency Services
Progress in energy management systems is opening up new opportunities for further growth of energy efficiency solutions. Providers of EE services in the CR are include companies such as ENVIROS and SEVEn.
Transport and Infrastructure
Czech have the ability, skills and capacity to produce most types of vehicles for road, rail and air transportation. This is valued by a number of international investors – Siemens, Bombardier, GE Aviation or Kapsch. There are several producers of air navigation radars and other equipment for airports and aircraft, as well as for communication in the railway industry (Skoda Transportation and Bonatrans).
Though the Czech defence industry does not play such a dominant role today as it did between the world wars, it still holds a significant position among global competitors. For example, passive surveillance systems from the company ERA are a Czech invention coveted by global producers.