ECB Innovation Barometer: The Czech Republic has improved, although it is still mainly attracting investors with cheap labour
The Erste Corporate Banking Innovation Barometer monitors
competitiveness, innovation potential and the future prosperity of
The Czech Republic came 17th in the barometer, two places
higher than last year
The Czech Republic is lagging behind in, for example, the number of
applications for international patents, or the percentage of households with a
broadband internet connection
For the fifth year, Ceska sporitelna has issued a unique tool for
comparing the attractiveness of the 28 economies in the European Union – the
Erste Corporate Banking Innovation Barometer. This assesses the economic
performance of individual countries in terms of of their innovation capability
and future competitive ability. This year’s assessment confirmed that if
European Union member states want to succeed in the growing competitive
environment, they will have to concentrate on innovation, science, research and
ensuring a high level of added value.
The analysis also showed that European countries maintain their competitive
ability in two ways. Either they are leaders in the field of innovation, thanks
to which they can afford to pay higher salaries without losing their
competitiveness, or they lag behind in the introduction of innovations and
compensate for this lack by paying lower salaries.
“Countries which are not sufficiently innovative, yet still pay high
salaries sooner or later find themselves in a macroeconomic crisis, as happened
in over-indebted Greece, Italy and Spain. If we want higher salaries in the
Czech Republic, we must improve the environment for innovation,” says Jan
Jedlička, Manager of the Ceska sporitelna EU Office.
For the time being, the Czech Republic still belongs to the group of less
innovative countries with lower salaries, but is slowing climbing up the table.
The Czech Republic is doing well, i.e. above the EU average, in its share of
hi-tech exports, in expenditure channelled into research and development and in
the number of graduates of technical disciplines at universities. In contrast,
it is lagging behind in the share of investments by venture capital funds into
start-ups and seed companies, public expenditure on education, in the share of
individuals communicating with public administration via the internet, in the
percentage of households with broadband internet connection and in the number
of applications for international patents.
More information and the full version of the ECB Innovation
Barometer analysis can be found here [new window].
For further information please contact the Press Centre of
the Ceska Sporitelna Financial Group (CSFG):