Czech Republic struggles with innovation due to investment and education gaps

The Czech Republic is currently ranked 19th in innovation among EU member states, according to a report from the European Commission. This ranking is significantly behind leaders Sweden and Denmark, with Bulgaria and Romania lagging at the bottom. Factors contributing to the Czech Republic's lack of innovation include insufficient investment from both public and private sectors, weak cooperation between academic institutions and business entrepreneurs, and a relatively low percentage of the population holding university degrees. These issues have been persistent, with the nation exhibiting a marked decline in innovation performance over the past seven years. David Kotris, director of enovation, a company specializing in grant consulting, emphasized the importance of private investment funds as a potential catalyst for future innovative growth. Key issues highlighted include the disconnection between academic research and commercial application, which persists as investors are reluctant to engage in research, while academics are hesitant to accept commercial partnerships. As a result, the Czech Republic has developed basic innovative capacities but lacks the systemic connections needed for advancement. The country's limited involvement in EU research and development programs further exacerbates its innovation challenges. With only 1.6 percent of overall participations from EU member states and just 3.4 participations per 1,000 scientists and engineers, the Czech Republic is underperforming compared to its Western European counterparts. This situation is stifling technological progress and reducing labor productivity in various sectors. Despite these setbacks, the Czech Republic has shown strengths in digital skills and an increase in the export of high-tech products, pointing to some potential for growth in specific areas. Lastly, business expenditures on research and development, which have doubled over the past ten years, still fall short of the necessary levels seen in Europe. Kotris asserts that the role of private funding must grow significantly to stimulate innovation in the future. The ongoing challenges faced by the academic and commercial sectors underscore the critical need for reforms and increased collaboration to foster a thriving innovation ecosystem in the Czech Republic.