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Policies to Promote Innovation in the Czech Republic


  • Alessandro Goglio


The Czech government considers innovation policy a key component of the effort to improve the business environment. This paper underscores the importance for the Czech Republic of expanding R&D activities that have a potential for commercial innovation. It also points to the relevance of good general business conditions in encouraging research and ensuring that the economy benefits from the international diffusion of innovation. Concerning targeted policies, the need for structural reforms to improve the research and innovation environment is described. The paper looks at options to create a coherent governance framework for public R&D and to make the allocation of research funds efficient. Assessment of changes in R&D tax allowances and the strategy for giving direct support to innovative SMEs is also made. Finally, the paper considers what reforms are needed to help the creation of stronger science-industry links and the take-off of the venture capital and "business angels" market. This Working Paper relates to the 2006 OECD Economic Survey of the Czech Republic ( Politiques visant à encourager l?innovation en République tchèque Le gouvernement tchèque considère que la politique d'innovation est un élément clé des efforts menés pour améliorer les conditions de fonctionnement des entreprises. Ce document souligne l'importance que la République tchèque accorde au développement des activités de R-D pouvant déboucher sur une innovation commerciale. Il souligne aussi la pertinence de bonnes conditions générales pour encourager la recherche et tirer parti des avantages économiques de la diffusion internationale de l'innovation. S'agissant des politiques ciblées, la nécessité de réformes structurelles pour améliorer les conditions de la recherche et de l'innovation est soulignée. Le document examine les options en vue de la création d'un cadre de gouvernance cohérent pour la R-D publique et de l'allocation efficiente des fonds destinés à la recherche. Sont évaluées également les modifications des aides fiscales à la R-D et la stratégie visant à apporter une aide directe aux PME novatrices. Enfin, le document passe en revue les réformes qui sont nécessaires pour favoriser la création de liens plus forts entre la science et l'industrie et encourager le développement de l'activité du marché du capital-risque et des investisseurs providentiels. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la République tchèque 2006 (

Suggested Citation

  • Alessandro Goglio, 2006. "Policies to Promote Innovation in the Czech Republic," OECD Economics Department Working Papers 498, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:498-en

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    Czech Republic; incitations à l'innovation; innovation processes and incentives; management of innovation and R&D; OCDE; OECD; processus d'innovation; République tchèque; transition economies; économie en transition;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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