ict business and investment climate in the czech republic
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The 2011 Czech ICT Seminar, June 20, New YorkTRANSCRIPT
© Copyright, CzechInvest 2011. All rights reserved
ICT Business and Investment Climate in the Czech Republic
THE 2011 CZECH IT SEMINAR
Jan Fried
Director of East Coast Operation USA – New [email protected]: Jan FriedTwitter: JanFried2
June 20th, 2011, New York, NY
Agenda
╌ Czech Republic / CzechInvest
╌ Czech ICT Sector – Attractive Investment Climate
╌ Academic Institutions – R&D Potential
╌ Skilled Workforce – Advanced Domestic IT Market
╌ Favorable Labor Costs
╌ Financial Support
╌ Case Study – Deutsche Post DHL – Global IT Facility (Prague, 2004)
╌ Questions and Answers
Agenda
Czech RepublicTechnology and Innovation Hub in the Heart of Europe
Source: Google, CzechInvest, 2011
Czech RepublicTechnology and Innovation Hub in the Heart of Europe
Source: Google, CzechInvest, 2011
Czech RepublicTechnology and Innovation Hub in the Heart of Europe
Selected FDI / ICT SectorSource: CzechInvest, 2011
TestimonialsPositive Experience and Words of Mouth…
“Some Skype people actually went scouting through many Central European countries earlier this
year, looking for a new location based on a number of factors. We chose the Czech Republic
simply because it had the best mix (I asked if good beer was one of the factors, but didn't
receive direct comments).”
Source: CzechInvest, 2011
“The pool of engineering talent within the country’s open source community and the strengths
of its universities provide a firm foundation of technical excellence from which to grow our
business.”
“The language and cultural differences have not been barriers in the work environment. In fact,
due to the quality and professionalism of the Czech people, we have effectively had
success leveraging the time difference to increase productivity. Each day our confidence in
working with the Czech Republic continues to increase due to the ease of recruiting high
caliber technical candidates, low attrition rate and the support offered by companies like
CzechInvest.”
“South Moravia Expands as Information Hot Spot - One of Central Europe’s fastest-growing regions
is South Moravia, centered on the city of Brno, in the Czech Republic” (May 22, 2011)
╌ Access to Emerging Eastern and Established Western Market
╌ Less than Two Hours by Air to most European destinations
╌ Advanced Infrastructure – Densest Motorway Network in CEE, High-Speed Railways
Source: CzechInvest, 2011
Czech RepublicAttractive Investment Climate – Location in the Heart of Europe
Approved Projects (Total) : 1,565
New Jobs Created: 215,763
Total Investment Amount: 25,909 (USD mil.)
Czech RepublicAttractive Investment Climate – Projects by Sector
Strategic ServicesCenter
5%
Paper, WoodProcessing
2%Electronics,
Electrotechnics12%
Plastics, Rubber7%
Chemistry, Pharmacy
7%
IT and SoftwareDevelopment
14%Metal Products
3%
Biotechnology, Medical Equipment
1%
Other17%
Engineering14%
Manufacture of Motor Vehicles
19%
╌ 1993 – H2 / 2010
Source: CzechInvest – Official Statistics, Vienna Institute for International Economic Studies, FDI in CE&SE 2011
╌ “The highest growth of FDI in 2010 was
registered in the Czech Republic, which was
the only country where the 2010 inflow
surpassed the 2008 level“.
╌ IT – 40% of Total in 2010
╌ 1920s – 1930s Czechoslovakia Ranked among
10 Most Developed Countries in the World
╌ World Class Technical Universities
╌ Strong Science and Engineering Disciplines
╌ Focused to Meet the Needs of a Competitive Economy
Source: CzechInvest, 2011
Technical UniversitiesStudents: 80,245Graduates: 17,109PhD grad.: 1,029
Czech RepublicAcademic Institutions – R&D Potential
Source: Institute for Information on Education CzechInvest, 2010*Note: according to the selected
educational fields - source CzechInvest
ICT FacultiesStudents: 32,789Graduates: 6,575
PRAGUE REGIONStudents: 12,353Graduates: 2,464
LIBEREC REGIONStudents: 799Graduates: 455
HRADEC KRALOVEStudents: 782Graduates: 114
PARDUBICE REGIONStudents: 1,073Graduates: 112
MORAVIA-SILESIAStudents: 3,935Graduates: 720
ZLIN REGIONStudents: 1,794Graduates: 418
SOUTH MORAVIAStudents: 8,058Graduates: 1,897
PLZEN REGIONStudents: 2,364Graduates: 539
Technical UniversitiesStudents: 80,245Graduates: 17,109PhD grad.: 1,029
Czech RepublicAcademic Institutions – R&D Potential
╌ Research Cooperation:
╌ Vienna University of Technology,
╌ Cambridge University,
╌ Delft University of Technology,
╌ ETH Zurich,
╌ University of Pennsylvania,
╌ University of Minnesota,
╌ Milwaukee School of Engineering,
╌ Tokyo University of Agriculture and
Technology,…
╌ Industrial Contracts and Grants:
╌ Rockwell Automation,
╌ BAE Systems,
╌ Boeing,
╌ Google,
╌ Medtronic,
╌ Texas Instruments,
╌ CADENCE Design Systems,
╌ US Air Force Research Lab,
╌ U.S.Navy Research, U.S. Army,
╌ NASA,
╌ Successful Start-Ups
╌ Certicon,
╌ ProTyS,
╌ NeoVision,
╌ Eydea,
╌ Cognitive Security,
╌ AgentFly Technologies,
╌ Case: CTU – Department of Cybernetics – EU Centre of Excelence Since 2000
Source: CzechInvest, 2011
Czech RepublicWorld Class Technical Universities – R&D Potential
╌ Dedicated and Focused Support of Entrepreneurship:
╌ Total Expenditure on Research and Development (% GDP)
Source: CzechInvest, 2011
1.46%
Czech RepublicR&D Conductive Environment
Source: CzechInves; Czech ICT Alliance; ICT Unie; 2011
╌ Promotes Czech ICT Companies Abroad
╌ Foreign Customers/Partners, Outsourcing
╌ Defines and Represents Interests of ICT Companies in CR
╌ Development of Information Society
╌ Provides Czech Tech SMEs (StartUps) Support in Foreign Countries
╌ Business Development, VC/Angel Funding
Czech RepublicAdvanced Domestic ICT Market
╌ www.czechict.cz
╌ www.ictu.cz
╌ www.czechaccelerator.org
╌ Skills Are the Critical Factor for Success in ICT Sector
╌ Creative, Innovative, Skilled and Experienced Professionals
╌ At “Fraction of the Cost” of Those in Western Economies
Source: CzechInvest, 2011; The Economist Intelligence Unit, 2010;Watson Wyatt Data Services / USD = 16.908 CZK (www.cnb.cz 6-19-2011)
Position CR USA
IT Top Management 6,500 10,000
MIS Management 4,800 7,400
Systems Analysis Professionals
1,600 3,300
Programming Professionals
1,300 2,700
13.19
Czech RepublicFavorable Labour Costs
╌ Programme: ICT and Business Support Services
╌ Supported Activities:
╌ Development and Creation of IS/ICT Solutions and Applications
╌ Business Support Services
╌ Shared Services Centers with Substantial International Focus
╌ High-tech Repair Centers for Products and Technologies
╌ Data Centers – Planned Call IV (August/September 2011)
╌ Allocation: 1 bil CZK / Approx. 60 mil USD
╌ Individual Support: 40 – 60 % of Eligible Costs / Regions
╌ Max. 150 mil CZK / Approx. 8.8 mil USD
Source: CzechInvest, 2011
Czech RepublicFinancial Support – EU Structural Funds Until 2013
╌ Eligible Costs:
╌ Option One: Personal Costs
╌ Gross Wages of employees on Newly Created Positions
╌ Mandatory Social and Health Insurance Payments
╌ Option Two: Investment in Assets
╌ Land, Building, Hardware, Networks, ICT Components, etc.
╌ Software, Licenses, Know-How
╌ Binding Conditions (Small – Large Enterprise)
╌ Minimum Amount of Investment in Long Term Assets
╌ 0.5 – 3 mil CZK / 30k – 180k USD
╌ Creation of Minimum Amount of New Jobs within Project
╌ 3 – 40 jobs / ActivitiesSource: CzechInvest, 2011
Czech RepublicFinancial Support – EU Structural Funds Until 2013
ICT Business and Investment Climatein the Czech Republic
Summary
Source: CzechInvest, 2011
╌ EU Funds Until 2013 – ICT&BSS
╌ Creative, Innovative, Skilled Professionals at Fraction of the Costs
╌ Advanced Domestic Market
╌ World Class Technical Universities
╌ Attractive Investment Climate
╌ CzechInvest – Gateway to the Czech Republic
╌ Services Are Free of Charge
Case StudyDeutche Post DHL – Global IT Facility (2004)
Source: CzechInvest, 2011
CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic
© Copyright, CzechInvest 2011. All rights reserved
THANK YOU FOR YOUR ATTENTION
Questions?
www.czechinvest.orgBest Website among All Investment Promotion Agencies,
(2009, World Bank)
Jan Fried
Director of East Coast Operation USA – New [email protected]: Jan FriedTwitter: JanFried2
June 20th, 2011, New York, NY