Market Information: Sectors and Products

This section contains comprehensive analyses of particular industry sectors with a significant meaning for the Czech economy and a potential for further development. These include for example the automotive sector, electrical engineering and electronics, high-tech mechanical engineering or IT and software development. There are great opportunities for investment in nanothechnology, research and development, business support services, life science, cleantech, or the aerospace industry. You can also find here an overall survey of the Czech economy as well as analysis of specific sectors within the competence of the Ministry of Industry and Trade of the CR.

Automotive

Electrical engineering and electronics

High-tech mechanical engineering

IT and software development

Nanothechnology

Research and development

Business support services

Life science

Cleantech

Aerospace industry

Survey of the Czech economy

Comprehensive sector analyses

Automotive industry

The Czech automotive industry represents one of the most developed automotive markets in the CEE region. Based on its long tradition and technical know-how, the Czech automotive sector succeeded in transitioning into a European advanced automotive base while maintaining its attractive quality/price ratio. This is evident in the fact that in 2010 annual production of passenger cars exceeded one million units for the first time.

Electrical engineering and electronics

The Electrical Engineering and Electronics sector belongs to one of the most important sectors in the Czech Republic. Its importance is based on the long and nationwide tradition of the sector, electrical engineering specialisation and a solid educational system. Stemming from the manufacturing and R&D base of such companies as Tesla Conglomerate, the Czech EE/electronics sector underwent a successful period of twenty year reconstruction. As a consequence, a vast number of foreign electronics companies have been attracted and are nowadays evenly distributed across the entire country.

High-tech mechanical engineering

Mechanical engineering has a great history in the Czech Republic. The country`s high-level technical know-how has been shared over centuries, resulting in the world-class level of today`s mechanical engineers, who are the sector`s greatest asset. The country''s great concentration of mechanical-engineering companies makes the Czech Republic an engineering hub. The sector supplies complete equipment and machinery (including turbines, transportation and air-conditioning equipment; agricultural, food-processing and construction machinery; and machine tools) while also engineering household goods.

IT and software development

The Czech Republic is one of Europe`s top locations for offshoring and outsourcing of IT services. Repeatedly recognized by various researchers this fact is confirmed by the strong inflow of high-value-added projects of the world`s top IT companies and is fueled by the country`s tradition of excellence in technical fields. IT companies with Czech origins are renowned worldwide for their products and services (e. g. AVG Technologies, Certicon, Unicorn, Y-SOFT, 2N, CN-Group, e-Fractal, Mycroft Mind). Despite being one of the most mature IT markets in the CEE region, the Czech Republic still offers plenty of growth potential.

Nanothechnology

The Czech Republic has a growing interest in the area of nanotechnology, which is evident in the growing number of science institutes, universities and private entities that are dedicating themselves to this field. Most of them operate with unique technologies; achieve remarkable research findings and employee excellent researchers. However, some of them lack sufficient financial resources to implement bring research findings in the commercial sphere.
Such entities would welcome cooperation with strong and prestigious companies and institutions in the form of joint R&D projects or joint ventures.

Research and development

Innovation is not new to the Czech Republic. Czech academics and entrepreneurs have been successfully exploiting new ideas for generations. What is new is that the Czech Republic is now widely recognized as a centre of profitable innovation and technological entrepreneurship. Moreover, innovation throughout the economy is now being stimulated and sustatined by both Czech and international companies.

Business support services

The Czech Republic has traditionally belonged among developed industrial countries. The country`s orientation has been changing dramatically during
past 20 years from an industrial hub in Central and Eastern Europe towards more services focused economy. Business Support Services sector belongs
among the most dynamic ones. The most frequently shared services are financial, accounting and IT services and customer support. Rapidly growing shared services include human resources, purchasing, logistics and legal services.

Life science

The Czech Republic is home to a number of noteworthy research institutes and universities that have achieved state-of-the-art results in the areas of immunology, rheumatology and pharmaceutical chemistry and have mastered high-quality research in neurosciences, oncology, diabetes and metabolic diseases. Based on the Government Decree of 2005, the country sets molecular genetics and biotechnologies among the priority areas in the long-term, fundamental direction of research.

Cleantech

The Czech Republic offers an advantageous strategic location in the centre of Europe with high-quality logistics and infrastructure. This combination guarantees great networking possibilities. In the past decade, the country has experienced a dynamic shift towards a positive environmental legislation strategy. The governmental support strategy creates conditions that will make it possible to fulfil the EU requirement of domestic renewable energy covering 13 % of demand by 2020. In this regard, the Czech Republic has achieved very fast development of its renewable energy. The country holds a leading position in Central and Eastern Europe in terms of the environmental management approach. The governmental “energy matter approach” ensures investment support from structural funds covering up to 60 % of eligible costs, a transparent system of financial incentives and 5+1 years` tax relief.

Aerospace industry

The aerospace industry has a long tradition in the Czech Republic. The country has been producing sophisticated products such as commercial aircraft and military jets for more than 90 years. The aerospace heritage has brought extensive knowledge derived from the results of numerous aircraft tests. This has contributed to building a strong aerospace culture in which generations of designers have been able to acquire and developed advanced technical skills. The aerospace sector is largely based on sharing knowledge and experience with foreign partners and the country`s aviation specialists are eager to take part in the development of passenger aircraft and to contribute to the success of the industry not only in the Czech Republic but on a global scale by bringing the best of their past and present into the future.

Survey of the Czech economy

The Ministry of Indurstry has prepared a survey of the Czech economy which povides a picture of long term development and the current situation in specific sectors of the Czech manufacturing industry.

Comprehensive Sector Analyses

(listed according to NACE codes, in Czech only)

Further information on industrial sectors are available on the MIT website.

More information

A list of selected branch directories (e. g. Czech Building Companies, Textile and Clothing Industry, Agricultural and Forestry Machinery, Automotive Industry Association, Catalogue of the Czech Defense Industry, Association of Manufacturers and Suppliers of Engineering Technique, Directory Information Technology & Telecommunications Organizations, Glass, Cramics and Jewellery Manufacturers of the Czech Republic).