The investment highlights of the Czech Republic

Investment Highlights

Czech Republic is truly in the center of Europe. It enjoys proximity to and access to technologically advanced nations as well as it has low cost but technically skilled manpower base. Sharing borders with Germany, Austria, Slovakia and Poland, it enjoys the benefits of being a part of European Union and at the same time has its own independent currency – Czech Crown (Czech Koruna).
The Czech Republic hosts over 73,000 foreign companies of all sizes. Famous multinational companies such as ABB, Continental, DANONE, Ford, Panasonic, Nestlé, IBM, DHL, Astra Zeneca, Rockwell, Procter & Gamble, Renault, Siemens, Tyco, Honeywell, and Volkswagen have significant subsidiaries in the Czech Republic.

In the year 2011, there were more than 80,000 technically orientated students at Czech universities. Nine out of ten Czechs aged 18 to 59 speak at least one foreign language.

R&D in the Czech Republic

Over the past ten years, the Czech Republic’s spending on R&D has increased from 0.95% of GDP to 1.61%. Many multinationals are running Czech R&D or design centers, including Panasonic, Honeywell, Mercedes-Benz, Motorola, Rockwell Automation and Visteon.

To highlight a few sectors:


The automotive sector in Czech Republic accounts for more then 20% of manufacturing output, almost 8% of national GDP and more than 280,000 directly related jobs. At full capacity, three major production plants – Skoda, TPCA and Hyundai – produce nearly 1,100,000 cars annually and the presence of almost half of the world’s top fifty leading component manufacturers underscore the sector’s importance.

Industrial Goods

The sector accounts for more than 13% of revenues from the sale of products and services of the manufacturing industry, and almost 7% in added value. The sector maintains its strong position as a traditional exporter – between 80% and 90% of the sector’s output is exported.

Electrical Engineering / Electronics

The industry is evenly spread around the country and employs nearly 160,000 people with total revenues of over EUR 15 billion (in 2010). The country‘s manufacturing portfolio includes products from electric drives/engines and power supply to consumer electronics and microchips.

Life Sciences

Thanks to a strong research base, well-educated workforce and favourable business environment, this strategic sector is developing very quickly in the Czech Republic. Global companies such as Baxter, Lonza, Otsuka Pharmaceutical, TEVA and Sanofi -aventis are developing their operations in the Czech Republic.

Other interesting sectors in Czech Republic are: Aerospace Industry, Software services, Cleantech, Nanontechnology and Business Outsourcing services.

Information about Czech investments

For more information on investment opportunities in these sectors, please contact our M&A advisor Sumit Arora in the Czech Republic.