Read the Input Papers on the economy of the Czech Republic and the importance of cluster organisations
Executive Summary
The following paper presents observations on the Czech clusters landscape and outlines some key considerations for the future development of the region. These considerations may pose some open strategic questions, which can be addressed in the workshops of the “Clusters meets Regions” event. The following key takeaways are summarised below:
Context: Economic profile of Czechia
- The Czech economy is the 18th largest in the EU and has, over the last 20 years, enjoyed positive economic growth. Despite severe economic challenges during the 2020 COVID-19 pandemic, the country rebounded with increased GDP and managed unemployment effectively through government intervention.
- The sectoral & ecosystem composition, as well as specialisation in Czechia’s economy, present a diverse range of opportunities across different economic realms, with potential for leveraging these strengths to enhance regional growth through support for economic and cluster structures.
- The 2023 European Innovation Scoreboard categorises Czechia as a “Moderate Innovator”, showcasing a significant increase in its innovation performance over the past years. According to the 2022 Regional Competitiveness Index, Czechia's overall score falls just below the EU average, revealing significant regional performance disparities. Notably, Prague, the capital region, excels in innovation, underscoring its technological advancement within the country.
Clusters in Czechia and their importance for regional economic development
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35 ECCP-registered clusters are located in Czechia, covering 12 out of 14 EU Industrial Ecosystems. Particular strengths are found in the ecosystems around Industry 4.0 topics, including Digital, MobilityTransport-Automotive, and Electronics, but also around the link between Renewable Energy and Energy Intensive Industries.
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Empirical insights from the European Cluster Panorama 2021 and Ketels & Protsiv (2021) prove how clusters can have a striking impact on economic growth and innovative business activity within regions. The study also highlights the role of cluster organisations in Czechia.
Cross-border cooperation and the involvement of Czech clusters in European networks and support initiatives
- In the 2014-2020 funding period, seven Czech cluster organisations participated in 18 projects under the banner of the European Strategic Cluster Partnership. The bulk of the projects concerned the ESCP for Going International (ESCP-4i), which accounted for nine of the aforementioned sixteen projects. In addition, two cluster organisations participated in the Innosup-1 “Cluster facilitated projects for new value chains” initiative.
- In the 2021-2027 period, five Czech cluster organisations are involved in five Euroclusters, which include 22 cluster partners from 11 different Member States.
Smart Specialisation in Czechia
- The S3 of the Czech Republic 2021–2027 identifies six priority areas. These priority areas are “Advanced machinery/technologies for the globally competitive industry”, “Digital technologies and electrical engineering”, “Transport for the 21st century”, “Healthcare, advanced medicine”, “Cultural and creative industries”, as well as “Sustainable agriculture & environmental sectors”.
- Cluster organisations in Czechia contribute to all priority areas of the 2021-2027 S3. Notably, they demonstrate significant contributions in areas such as "Advanced machinery/technologies for global industry competitiveness," "Healthcare and advanced medicine," and "Sustainable agriculture and environmental sectors," with the majority anticipating these priority areas to gain further importance in the future.
Full Input Papers are available here.
More information about the Clusters meet Regions in Prague here.
