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Knowledge Economy Forum V Prague 2006

Knowledge Economy Forum V Prague 2006. Jiří Havel Vice Prime Minister of the Czech Republic. Plan . Introduction Czech Experience: Necessary conditions for development Knowledge oriented measures Achievements Measures to Proceed (what we have learned) Closing. Introduction.

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Knowledge Economy Forum V Prague 2006

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  1. Knowledge Economy Forum V Prague 2006 Jiří Havel Vice Prime Minister of the Czech Republic

  2. Plan • Introduction • Czech Experience: • Necessary conditions for development • Knowledge oriented measures • Achievements • Measures to Proceed (what we have learned) • Closing

  3. Introduction • The need for knowledge-based economy • Innovative investment • Labour force with high qualification • Mobile • Adaptable • Language skills • From centrally planned to KE - transition • World Bank assistance – KEF

  4. Czech Experience • Several necessary measures - preconditions • Assuring stability • Improving the legal framework • Promote ICT • Developing HE infrastructure • Knowledge oriented measures • Attract knowledge when missing • Expanding and absorbing knowledge when attracted - Cluster, Platform • Create knowledge as needed

  5. Czech Experience - Necessary Measures (1/2) • Assure stability of investment climate • Liberalisation • Better regulation • Stable prices • Fiscal discipline

  6. Czech Experience - Necessary Measures (2/2) • Achievements: • Improved legal framework and administration • Recodification of bankruptcy law • Single contact place for entrepreneurs • Increasing number of internet users • Decreasing prices of home internet access • Still needed: • Further decrease the burden on business • Regulation Impact Assessment • Business impact assessment • Extend the PC and internet availability for schools

  7. Czech Experience - Attract Knowledge (1/_3) • Attracting knowledge • Investment incentives • Clustering • R&D expenditures with 100 % dep. rate FDI inflow per capita, period 1995 - 2004 (USD, source: CzechInvest)

  8. Continuous growth Positive effect of the past investment Appreciated currency But positive Trade balance Higher added value production Czech Experience - Attract Knowledge (2/3)

  9. Czech Experience - Attract Knowledge (3/3) • Still needed: • Investment incentives • Subsidies in line with the additionality principle - promote investment activities • Subsidies for job creation - problematic • European style labour market • Incentive for production with lower added value (labour intensive) • More labour - lower reward - slower innovation • Keep a slower track for Incumbents • support high-tech production/services enterprises in innovations, R&D expenditures with 100 % dep. rate • Support dynamic Startups • Venture Capital, Mini-grants, Matching Grants

  10. Czech Experience - Expand and Absorb Knowledge • Expanding and Absorbing knowledge • Assure access to and the protection of IPR • Support the formation of Clusters • the service for Incumbents • the learning of potential Startups • Support the communication from consumer to researcher and vice versa • support technological Platforms • create a “knowledge market-place” • information exchange and feedback

  11. Czech Experience - Create Knowledge • Achievements: • Promoting Higher education • 100.000 students increase in tertiary education since 2000 • Reform of university financing • Increased funding by 50 % in the last 4 years (from 18 to 27 bln CZK) • The public expenditures for science increased by 46 % since 2002 (12,5 to 18,2 bln CZK) • R&D evaluation emphasises scientific excellence and practical results • BIC Plzen (18 companies, e.g. Panasonic SW, 77 employees, 1925 m²) • VUT Brno – Technological incubator (15 companies e.g. YSoft, 90 employees, 521 m²)

  12. Czech Experience - Create Knowledge • Still needed: • Promoting Higher education • Project oriented funding • Increase the number of the general secondary school students (35 % of all secondary level students in 2010) • More technical studies, keep the studies of arts • Mobility of students, researchers • Make the students mobile (study visit abroad programme) • Get the brains back (motivation for return from abroad) • Take care of them (support of projects after the return) • more young scientists • the programmes of Ministry of Education, Youth and Sport of the Czech Republic

  13. Czech Experience - Create Knowledge • Still needed: • Gradual increase of R&D expenditures to reach 3% of GDP in 2010 (1/3 from public sources) – when demand for knowledge is enough stimulated • More finance to collaborative research (subsidies, tax incentives) • Use EU structural funds (Business incubators, Transfer technology centers) – 12 bln CZK

  14. Closing • This event was inspected by • R&D Council of the Czech government • Government Council for Human Resources Development • Follow-up conferences: • How to proceed in the R&D financing? Seminar in Michnov Palace, Prague on March 31st 2006, and • 2nd International Conference: Knowledge-Based Economy, National Forum on Knowledge-Based Economy, organised by The Institute for Finance and Administration on May 23rd 2006 and is held under my auspices.

  15. The end of presentation Thank you for your attention. Hope to see you soon in Prague again.

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