Research and Development in the Czech Republic DELTA and Kontakt II Programs

1. Research and Development in the Czech RepublicDELTA and Kontakt II Programs DestinationEurope, Chicago, Oct. 16, 2015Presentation by Bořek Lizec, Ph.D.Consul General oftheCzech Republic in Chicago

2. Czech Republic Area: 78,864 km2 Population: 10,266,000 Official language: Czech Currency: 1 Czech crown (CZK) Capital: Prague Membership:EU, NATO, IMF, WB, WTO,OECD, OSCE Czechs& Chicago: Anton Cermak(Chicago Mayor) Ray Kroc (McDonalds), George Halas (Bears), Kim Novak (Film Vertigo), Judy Baar Topinka, Jim Lovelland Eugene Cernan (astronauts) and others

3. Science in Czech lands Charles University established in Prague Czech Technical University established Prokop Diviš invents lighting rod J. E. Purkyně formulates the cell theory First car in Central Europe „President“ Jan Jánský discovers the four blood types Viktor Kaplan invents the Kaplan Turbine J. Heyrovský´s polarographic method Otto Wichterle invents soft contact lens Invention of Semtex explosive Jiří Čížek nominated for a Nobel Prize for his method of calculating correlation energy The FDA approves the B-hepatitis drug Hepsera (compound discovered by A. Holý) Elmarco introduces Nanospider The FDA approves atripla treating HIV based on A. Holý‘s compound 1348 1707 1754 1837 1897 1907 19121922 1961 1966 1998 2002 2004 2006

4. Main Universities in the Czech Republic CZECH REPUBLIC Students: 368,304 Graduates: 91,551 Technical University Liberec Students: 7,890 Graduates: 1,728 Jan Evangelista Purkyně Univesity Ústí nad Labem Students: 9,678 Graduates: 1,955 University of Hradec Králové Students: 8,824 Graduates: 2,080 University of Life Sciences, Prague Students: 22,256 Graduates: 5,496 Charles University Prague Students: 48,200 Graduates: 8,873 University of Ostrava Students: 10,299 Graduates: 2,524 Czech Technical University Prague Students: 21,542 Graduates: 5,008 University of Economics Prague Students: 17,215 Graduates: 4,987 University of Pardubice Students: 10,317 Graduates: 2,130 University of West Bohemia Plzeň Students: 13,459 Graduates: 3,303 VŠB-Technical University Ostrava Students: 19,237 Graduates: 4,956 Palacký University Olomouc Students: 21,316 Graduates: 4,841 University of South Bohemia České Budějovice Students: 12,301 Graduates: 3,010 Tomáš Baťa University Zlín Students: 11,299 Graduates: 2,524 Brno University of technology Students: 22,046 Graduates: 5,567 Masaryk University Brno Students: 37,351 Graduates: 9,180 Source: Ministry of Education, Youth and Sports, 2014; CzechInvest, 2014

5. Opportunities for cooperation in the area of research and development in the CzechRepublic The country has marked impressive volumes of FDI, which included the area of R&D. TheUnited States is no exception. The Czech Republic is the cornerstone of Honeywell’s global engineering strategy in Europe. The company’s Prague laboratory opened in 1993, followed by its Brno design center ten years later. GE Aviation is successfully developing and manufacturing aero engines in the Czech Republic since 2008.

6. Selected U.S. investors in the Czech Republic Source: CzechInvest, 2015; fDi Markets 2015

7. MAJOR INVESTORS– Technology Centres BANG & OLUFSEN (el.)OLYMPUS (med.) ROBERT BOSCH (aut.) ON SEMICONDUCTOR (el.) DENSO (aut.) PANASONIC (el.) EMERSON (el.) PROCTER&GAMBLE (chem.) GE AVIATION (aero.) RICARDO (aut.) HONEYWELL (el.) RIETER INGERSOLL RAND SIEMENS (el.) LATÉCOÈRE (aero.) VARROC LIGHTING (aut.) LONZA (bio)VOLKSWAGEN (aut.) MERCEDES-BENZ (aut.) VISTEON (aut.) Source: CzechInvest, 2014

8. MAJOR INVESTORS– IT & Software Development ACISION ORACLE ADOBE PIXMANIA AVG TECHNOLOGIES RED HAT BOHEMIA INTERACTIVE SKYPE COMPUTER ASSOCIATES SOLARWINDS DEUTSCHE BÖRSE STORA ENSO DHL SUSE LINUX HEWLETT PACKARD TELEFÓNICA IBM TELOGIC INFOSYS TERADATA MICROSOFT TIETO NESS TECHNOLOGIES Source: CzechInvest, 2014

9. Czech R&D Sector The Czech scientists introduced the world to the contact lens and successfully developed thecompounds on which current anti-AIDS drugs are based, Czech companies have already left a large foot print on groundbreaking technologies with respect to hologram production, nanofibres, speech recognition, hyaluronic acid, cybernetics, stem-cell research and astrophysics. The partnership between ICR Center in Brno and the Mayo Clinic of Minnesota, and between Czech Academy of Sciences and Fermilabcan serve as examples of successful cooperation between research institutions from the Czech Republic and the US Midwest.

10. Science and Technology Parks in the Czech Republic In science and technology parks, young, innovative firms cross paths with well established companies with a shared interest in research and development. The Czech Republic supports cooperation between the research and business spheres through the operational programs of the EU as well as other programs. More than fifty science and technology parks including incubators and innovation centers have been established in the Czech Republic since 1994. In 2004 the country became a member of the European Union, which spurred an additional, fundamental increase of support for science and research, including infrastructure.

11. Science and Technology Parks in the Czech Republic

12. Science and Technology Parks in the Czech Republic • South Moravian Innovative Center Brno • Technology Park Brno • Science and Technology Park Ústínad Labem • Science and Technology Park Plzeň • Business Innovation Center Plzeň • South Bohemian Science and Technology Park ČeskéBudějovice • The Technology Park at TomášBaťa University in Zlín • Technology Innovation Center Zlín • Technology Park of Information and Communication Technology Zlín • Science and Technology Park of Palacký University, Olomouc • Science-Technological Park Ostrava • Business Innovation Centre Ostrava • Technological Center of Hradec Králové • CTTV – The Center of Textile Technologies and Education, Hradec Králové

13. Selected Institutes and Research Centers in the Czech Republic • CEITEC – Central European Institute of Technology • Center of scientific excellence in the fields of life sciences and advanced materials and technologies • Institute of Molecular and Translational Medicine • A moderninstitution at the Palacký University in Olomouc • for drug and biomarker discovery, research and development

14. Selected Institutes and Research Centers in the Czech Republic • The International Clinical Research • Center of St. Anne´s University • Hospital in Brno • An international team of researchers and physicians is building a unique center for multidisciplinary medical research focusing on some of the most serious health problems and diseases. • Czech Institute of Informatics, • Robotics, and Cybernetics • founded by Czech Technical University in Prague

15. DELTA ProgramTechnology Agency of the Czech Republic The DELTA Program supports the cooperation of Czech companies and research organizations with their foreign partners in the area of applied research and experimental development. The program is designed particularly for cooperation with non-European countries, including the United States. The program will support projects that focus on specific results in applied research, i.e. leading to the acquisition of new knowledge and skills for the development of new or significantly improved products, processes or services, and in experimental development, i.e. leading to a new product, process or service. Thanks to the DELTA program the access of researchers from the Czech Republic to international know-how and foreign research capacities and vice versa shall be facilitated as well as the access to foreign markets.

16. DELTA ProgramTechnology Agency of the Czech Republic Estimated total amount of aid from the state budget: CZK 770 mil. = approx. USD 32 mil. Estimated duration of the program: 6 years (2014 – 2019) Launch of the first call for proposals: during the spring months of 2014 Launch of other calls for proposals: up to four times per year, last call for proposals is expected in 2017

17. DELTA ProgramTechnology Agency of the Czech Republic Duration of projects: up to three years, all projects must be completed before the end of the program The maximum support rate: 74 % of total project costs The maximum amount of support per a project: CZK 25 mil. = approx. USD 1 mil. Estimated minimum amount of projects to be supported: 60

18. Thematicfocusofthe DELTA ProgramTechnology Agencyofthe Czech Republic The program itself is not thematically focused. The themes of joint projects will be determined ad hoc based on jointly selected fields preferred both by TA CR and the foreign partner agency. The selection of the themes will be made for each partner agency separately and will reflect the priority area or area of excellence of applied research and experimental development in both countries. However, the projects shall corespond with the following priority areas, national priorities of targeted research, experimental development and innovation:

19. Thematicfocus– NationalPrioritiesDELTA Program - Technology Agencyofthe Czech Republic • Competitive knowledge-based economy (Application of new findings from the area ofGeneral Purpose Technologies, Strengthening of sustainability of productionand other economic activities, Strengthening of safety and reliability) • Sustainability of energetics and material resources (Sustainable energetics, Lowering the energetic demands of the economy, Material base) • Environment for quality life (Natural resources, Global changes, Sustainable development of landscape and settlements, Environmental technologies and eco-innovations, Environment-friendly society) • Safe society (Safety of citizens, Security of critical infrastructures and resources, Crisis management and security policy)

20. Required outputs DELTA Program - Technology Agency of the Czech Republic All projects that are supported by TA CR must achieve a practically usable output. The DELTA programcan only support projects that are reasonably expected to achieve at least one of the following types of outputs: P – patent Z – pilot plant, verified technology, variety, breed F – Results of the legal protection – the utility model, industrial design G – Outcomes – a prototype, working sample N – certified methodology, treatment, conservation methods, specialized map with expert content R – software

21. DELTA ProgramTechnology Agency of the Czech Republic Projects can be supported only with partners from those countries, where technology or innovation agencies have established cooperation with Technology Agency of the Czech Republic. In the United States, collaboration, particularly in the area of transfer of know-how, was established with the National Science Foundation (NSF). The negogiations are being finalized with the Massachussets Institute of Technology (MIT).

22. DELTA Program – More InformationTechnology Agency of the Czech Republic www.tacr.cz borek_lizec@mzv.cz martina_east@mzv.cz

23. Program Kontakt II Ministry of Education, Youth and Sports of the Czech Republic KONTAKT IIprogram is intended to support individual projects of international bilateral and/ormultilateral cooperation in research and development, with special emphasis on bilateral cooperation with countries outside the European Union. Applicants shall mainly be public universities, public research institutions and other research entities. They may also be government departments or organizational units of the Ministry, engaged in research and development, as well as legal entities or natural persons, where research and development is the subject of their business, particularly small and medium-sized enterprises. The financial resources shall be used to cover the costs associated with the implementation of basic research conducted as a joint project, which involves at least one partner research organization in each country.

24. Program Kontakt II Ministry of Education, Youth and Sports of the Czech Republic • Estimated duration of the program: • 7 years (2011 – 2017) • Duration of projects: • 2 to 3 years • Estimated total amount of aid from the state budget: • CZK 594 mil. = approx. USD 25 mil. • Maximum support rate: • up to 100 % of total project costs for basic research • up to 50 % for applied research • Expected ratio of expenditure on basis and applied research: • 8:1.

25. More information - Program Kontakt II Ministry of Education, Youth and Sports of the Czech Republic www.msmt.cz www.dzs.cz/en/american-science-information-agency borek_lizec@mzv.cz martina_east@mzv.cz

26. Thank you for your attention BořekLizec, Ph.D.Consul General of the Czech Republic in Chicago borek_lizec@mzv.cz Martina East Trade Officer martina_east@mzv.cz Consulate General of the Czech Republic in Chicago 205 N. Michigan Ave., Suite 1680, Chicago, IL 60601, U.S.A. Phone: +1 312 861 1037, ext. 100 Web: www.mzv.cz/chicago (featuringthispowerpointpresentationand additionalinformationmaterials on theh Czech R&D sector, including DELTA and Konakt II programs)