Czech Dynamism: Industries' Performance

Czechia’s economy is resilient and export-led, pivoting to electrification and digital rails. Key levers: grid, skills, permitting, cap markets; strengths in autos, ICT, pharma. AI

Czechia enters 2025 as a resilient, export-led economy with an industrial core that still pays the bills—automotive, machinery, electronics, chemicals, and metals—while a broad services layer (ICT, professional services, logistics, tourism) adds stability and new growth vectors. The headline is not “reinvent everything,” but “upgrade everywhere”: squeeze more value from the existing spine while seeding power-electronics, medtech, creative tech, and cleantech niches that compound over the decade. The country’s digital rails (Bank iD, Data Boxes) are unusually mature, giving it an execution advantage if the back-office registries and permitting systems catch up. In short: strong bones, good arteries, a few clogged capillaries.

On the strengths side, Czechia has a rare density of OEMs and Tier-1/2 suppliers, a vocational tradition that still produces shop-floor excellence, and proximity to DACH that keeps pipelines full. ICT and software exports are competitive, mobile connectivity is near-universal, and e-government identity/e-delivery reduce friction for firms and citizens. Tourism is back to records, creative industries have better incentives, and the semiconductor pivot—especially in SiC power—creates a strategic foothold tied to EVs, renewables, and data-center power. These are assets many countries would love to start with.

Weaknesses cluster where systems meet: energy price volatility and connection queues; slow, paper-heavy approvals for housing, factories, and infrastructure; patchy fixed-gigabit coverage; and shallow domestic risk capital. Labour markets are tight outside the largest hubs, with visa and housing frictions limiting how fast firms can fill specialised roles. Some sectors are mid-tech and fragmented, leaving pricing power and brand capture on the table. And exposure to EU demand cycles, especially Germany, means shocks transmit quickly.

Energy is the keystone. The coal exit by 2033 and new nuclear at Dukovany set a clear direction, but competitiveness hinges on grid build-out, predictable clean-power pricing for industry, and faster connections for renewables and storage. If government turns “capacity” into a product—heatmaps, firm windows, standard substation packages—manufacturers can electrify heat, deploy drives and storage, and sign decade-long PPAs today. That flips energy from a constraint into a comparative advantage, especially when paired with efficiency retrofits and waste-heat recovery in metals, chemicals, and food.

Permitting and delivery are the productivity tax we can actually cut. A digital, time-boxed pipeline (open-BIM submissions, once-only data, public queue dashboards) would accelerate housing, industrial parks, intermodal terminals, and district-heating upgrades. Pattern-book approvals and prefab corridors can industrialise mid-rise housing and public buildings, easing Prague’s affordability crunch and improving labour mobility. For infrastructure, publish corridor-level plans with pre-cleared baselines so multiple projects run under a single strategic EIA instead of serial bottlenecks.

Skills are the rate limiter. Dual-VET 2.0 for plant roles (robotics, PLC, metrology), micro-credentials for cloud/data/security, and targeted visas with spousal work rights will widen the funnel fast. Tie public support to measured throughput—credentials earned, vacancies filled, OEE gains—so programmes stay honest. Geographic maldistribution in healthcare and engineering can be softened with tele-presence models, housing near key employers, and mobility subsidies that make non-metro jobs viable.

Finance and data rails decide how quickly SMEs modernise. Make open finance real with uniform APIs, consent dashboards, and uptime SLAs; default the state to instant payments and e-invoicing to improve cash cycles. Stand up a public “code & data” portfolio—shared payments/notify, registry APIs, sandboxed datasets—so Czech software and services firms productise rather than rebuild plumbing client by client. Deeper markets (covered bonds, securitisation for SME loans, growth-share instruments) diversify funding beyond bank credit.

Finally, pick a handful of economy-wide “pulls” that turn strategy into orders: (1) EV/power-electronics clusters anchored by on-shore module packaging and reliability labs; (2) heat transition kits for district heating and industry with performance-based support; (3) circular hubs for plastics/textiles with long-term offtake and digital product passports; (4) intermodal freight corridors with siding grants and eFTI-compliant data exchange; and (5) a national PRS/affordable housing stack that restores labour mobility. Publish brutal, boring dashboards—connections delivered, permits approved, MW and m² online, export wins—so momentum compounds and capital shows up.

If Czechia executes on these horizontals—grid, permitting, skills/visas, open data/finance, and capital depth—the strong sectors scale and the newer ones get teeth. The result is not a different economy, but a higher-value, cleaner, faster version of the one that already works.

Summary

1) Automotive (NACE 29)

• Snapshot: Record 1.45m cars in 2024; >93% exported; direct ~4.2% GVA; EV shift underway but bumpy.

• Strengths: Dense OEM/Tier network; strong productivity & export focus; ecosystem spillovers; power-electronics/SiC momentum.

• Weaknesses: Heavy EU/Germany exposure; ICE-heavy mix vs volatile EV demand; tier-2/3 margin/skills squeeze; policy/standards risk.

2) Machinery & Equipment (NACE 28)

• Snapshot: >5,200 firms, ~126k jobs, ~85% exports; top-3 manufacturing division by employment.

• Strengths: Broad capability set; adjacency to autos/electronics; skilled engineering tradition; near-shoring tailwinds.

• Weaknesses: Fragmented, mid-tech bias; capex/R&D lag vs DE/IT; energy/grid sensitivity; ageing workforce & skills gaps.

3) Electronics & Semiconductors (C26 + power C27)

• Snapshot: Pivot to power-electronics; onsemi SiC anchor; policy aligned with EU Chips.

• Strengths: Credible SiC/power device anchor; tight policy alignment; big local industrial customers; established EMS/logistics.

• Weaknesses: Thin front-end skills; incomplete specialty-supplier lattice; cyclical exposure; utility/permitting lead-times.

4) Chemicals & Pharmaceuticals (C20–21)

• Snapshot: One of the largest industrial complexes; pharma exports at highs; e-Rx universal.

• Strengths: Diversified chemicals base; resilient pharma exports & trials; e-Rx rails for RWE; proximity to DACH.

• Weaknesses: Energy/CO₂ exposure; limited originator/biologics scale; pricing/regulatory compression; GMP talent bottlenecks.

5) Metals & Steel (C24–25)

• Snapshot: Steel output ~2.4 Mt (2024 low); LIBERTY Ostrava stressed; fabricated metals busy but margins thin.

• Strengths: End-to-end metals→fabrication depth; DACH certifications & exports; EAF/scrap base; SME digitisation momentum.

• Weaknesses: Energy price & grid constraints; stretched balance sheets; CBAM/ETS admin & cost; node/customer concentration risk.

6) Food & Beverage (C10–12)

• Snapshot: Stable/domestic-oriented; record beer exports; inflation shock easing; automation push needed.

• Strengths: World-class brewing/malt; dense supplier networks; strong food-safety compliance; growth in NA/“better-for-you.”

• Weaknesses: Cost shocks deferred capex; retailer concentration & private label pressure; SME fragmentation; weak origin branding beyond beer.

7) Energy & Utilities (D35)

• Snapshot: Coal exit by 2033; new nuclear at Dukovany; RES and grid scaling; tariffs/queues volatile.

• Strengths: Nuclear baseload; clear build signals; CEZ decarb strategy; better risk management post-crisis.

• Weaknesses: Grid connection bottlenecks; nuclear procurement/legal timing risk; heterogeneous district heat; tariff volatility.

8) Construction & Real Estate (F + L)

• Snapshot: 2024 rebound; office vacancy low with scant new supply; housing starts lag.

• Strengths: Diversified contractor ecosystem; demand for energy-efficient offices; EU-funded civil works; rising BIM use.

• Weaknesses: Slow permitting; uneven BIM adoption; input-cost volatility; strained housing affordability.

9) Transport, Logistics & CEP (H)

• Snapshot: 2024 sector sales +4.6% y/y; rail hit by 2024 floods; PRG airport 16.35m pax.

• Strengths: Central location & networks; resilient warehousing/road; relatively strong rail share; air connectivity recovering.

• Weaknesses: Labour shortages; rail reliability/weather risk; fragmented digital paperwork; airport rail link not yet open.

10) Tourism & Hospitality (I)

• Snapshot: 22.8m guests / 57.3m nights in 2024; long-haul routes expanding.

• Strengths: Prague’s global brand; diversified offer (UNESCO, spa, outdoors); improving air links; better digital distribution.

• Weaknesses: Demand concentration in Prague; staffing shortages; fragmented compliance/data; uneven placemaking beyond core.

11) ICT / Software & Digital Services (J)

• Snapshot: CZK ~1.07 tn turnover (2023); ~202k jobs; 5G ~99% coverage; fibre VHCN patchy.

• Strengths: Strong export-oriented software & cyber; high productivity; great mobile coverage; rising private ICT R&D.

• Weaknesses: Fibre/gigabit gaps; SME digital uneven; tight labour/visa frictions; fragmented public data standards.

12) Creative Industries (games, AV, design)

• Snapshot: Games ~170 studios; AV incentives 25%/35% from 2025; growing export IP.

• Strengths: Proven export games cluster; attractive film/TV incentives & crews; strong animation/design; good education pipeline.

• Weaknesses: Thin IP finance; senior production & live-ops talent gaps; fragmented measurement; limited large-stage capacity.

13) Healthcare & Medtech (Q + C32.5)

• Snapshot: Health spend ~9% GDP; high bed/doctor density; e-Rx near-universal; medtech net importer.

• Strengths: Accessible, efficient system; e-health rails for adherence/RWE; mature regulator/HTA; EU-grade hospital demand.

• Weaknesses: Staff maldistribution; constrained innovation budgets; hospital-centric legacy; fragmented medtech depth.

14) Education & Research (P + cross-R&D)

• Snapshot: PISA above OECD avg; GERD 1.83% of GDP (2023); ~315k students, ~18% foreign.

• Strengths: Solid core skills; internationalised universities; majority business-funded R&D; high doctoral intensity.

• Weaknesses: GERD below EU leaders; uneven TTOs & incentives; dropout/time-to-degree; data interoperability gaps.

15) Public Sector, Defence & Security (O84 + defence industry)

• Snapshot: Law-mandated ≥2% GDP defence (2024) with glide toward ~3%; defence exports surging; digital rails (Bank iD, Data Boxes) mature.

• Strengths: Long-horizon defence budgeting; scaling primes/backlogs; robust e-ID/e-delivery; interoperable with NATO/DACH.

• Weaknesses: Orderbook concentration; uneven programme/cert capacity; siloed public IT beyond identity; energy/carbon scrutiny rising.

16) Agriculture & Food Systems (A)

• Snapshot: 2024 ag output CZK 172.1 bn (−2.7%); drought variability elevated; cereals below recent averages.

• Strengths: EU-compliant, organised farm base; tight processor linkages; strong drought monitoring; high mechanisation fit for precision tech.

• Weaknesses: Climate volatility risk; thin margins & policy exposure; weak farmgate bargaining power; data interoperability issues.

17) Finance & Fintech (K)

• Snapshot: Banks well-capitalised; instant payments mainstream; fintech base broadening.

• Strengths: Strong buffers & supervision; modern CERTIS rails; regulation-aware fintechs; high e-ID adoption.

• Weaknesses: Shallow capital markets; uneven open-finance APIs; insurance under-penetration (some lines); legacy core IT frictions.

18) Retail & Consumer Services (G + parts of S)

• Snapshot: Retail volumes recovering; e-commerce ~CZK 194 bn (2024); real wages up.

• Strengths: Modern omnichannel ecosystem; friction-light payments/ID; resilient procurement & pricing; tourism supports premium demand.

• Weaknesses: Labour scarcity in stores; siloed data across channels/last-mile; buyer power concentration; urban last-mile constraints.

19) Aerospace & Space (C30.3 + space multi-NACE)

• Snapshot: Aerostructures & L-39 deliveries resumed; 150+ orgs in space value chain; rising ESA participation.

• Strengths: Certifiable serial production know-how; broad supplier lattice; deepening space niches; policy visibility & branding.

• Weaknesses: Programme concentration risk; thin safety-critical software/systems depth; limited local test/cert infra; senior talent tight.

20) Water, Waste & Circular Services (E36–E39)

• Snapshot: Municipal recycling up (~44% by 2021 method); Waste Act/EPR updated; circular frameworks to 2040.

• Strengths: Solid legal/EPR backbone; operational gains in collection; rising industrial demand for low-CO₂ materials; municipal strategies maturing.

• Weaknesses: Landfill still high; weak plastics/textile re-processing depth; poor data interoperability; water infra renewal & climate stress.

21) Professional & Business Services (M + N)

• Snapshot: ~175k GBS/BPO jobs (2024), trending toward ~200k; high RPA/gen-AI adoption.

• Strengths: Multilingual, complex-work capability; process/compliance maturity; fast tech adoption; strong city–university pipelines.

• Weaknesses: Fixed gigabit gaps; visa/housing frictions; under-outsourced domestic SME base; brittle integrations with legacy client cores.

22) Housing & Urban Services

• Snapshot: Prague among least affordable in EU; rents rising; permits up but completions lagging.

• Strengths: Good data (CZSO/Deloitte) for policy; strong utilities/transit; deep rental demand; easing mortgage rates vs 2023 highs.

• Weaknesses: Slow, paper-heavy permitting; cyclical, metro-concentrated supply; extreme affordability ratios in Prague; fragmented registries.

23) Environmental Tech & Clean Industry

• Snapshot: Coal exit 2033; nuclear+RES path; renewables share still low; circular policy clearer.

• Strengths: Clear decarb anchors; big industrial demand for electrification/efficiency; circular policy bankable; power-electronics synergy.

• Weaknesses: Low RES share vs EU; grid/permit gatekeeping; thin complex re-processing; SME capital/engineering constraints.

24) Sports, Culture & Events

• Snapshot: 2024 hockey worlds record attendance & gold; festival calendar strong; AV incentives upgraded in 2025.

• Strengths: Elite sports brand & event capability; diverse year-round festivals; globally attractive film/TV terms; decent data & institutions.

• Weaknesses: Venue/logistics constraints; fragmented funding; seasonal staffing gaps; inconsistent impact measurement.

25) Public Administration & Digital State (operations)

• Snapshot: ~5m Bank iD users; 4m+ Data Boxes; billions of secure messages; back-office silos persist.

• Strengths: High-reliability e-ID and e-delivery; broad adoption by firms/citizens; national-scale stability; pragmatic iteration capacity.

• Weaknesses: Uneven APIs/data models across registers; risk-averse procurement; limited analytics due to consent/metadata gaps; digital talent shortages in government.

26) Natural Resources & Environment (forestry, biodiversity)

• Snapshot: ~34–35% forest cover; protected areas ~16.8% (Natura 2000 ~14%); recovering from bark-beetle/drought shocks.

• Strengths: Large contiguous forests & research base; clear conservation institutions; strong monitoring (drought/forest loss); nearby wood value chains.

• Weaknesses: Spruce vulnerability under warming; hydroclimate volatility; data interoperability gaps (forestry–biodiversity–carbon); incentives tied to volume, not outcomes.

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Industries Strengts & Weaknesses

1) Automotive (NACE 29)

Status quo (2025)

Czechia closed 2024 at an all-time record of 1,452,881 passenger cars, up 3.9% y/y, with over 93% exported; buses and trucks added to a total 1.48 m road vehicles, even as EV volumes dipped to ~151k (≈10.4% share), reflecting the wider EU demand wobble. autosap.cz+1
The auto complex’s direct weight is substantial—4.2% of total GVA in 2022, roughly double that when supplier industries are included—and road vehicles made 18.8% of all CZ goods exports in 2023, underscoring how tightly the sector is coupled to external demand. Ministerstvo financí ČR
Alongside vehicle output, AutoSAP members’ sales reached CZK 1.57 trillion in 2024, with 140,874 employees, showing breadth beyond OEMs (suppliers + special-purpose firms). autosap.cz

Size & share of GDP (hard numbers)

• Production: 1,452,881 passenger cars in 2024 (record). autosap.cz

• Sector sales (AutoSAP members, 2024): CZK 1,570.7 bn; OEM sales CZK 951.3 bn; suppliers CZK 594.1 bn. autosap.cz

• Direct GVA share (NACE 29): 4.2% of total value added (2022); exports of road vehicles: 18.8% of total 2023 exports. Ministerstvo financí ČR

Four strengths (longer, diagnostic sentences)

1. A dense triad of OEMs (Škoda/VW, Toyota, Hyundai) and a deep Tier-1/2 lattice give Czechia end-to-end capabilities from stamping to final assembly, with productivity and logistics maturity that consistently turn out million-plus units and allow >90% export penetration—rare for a mid-sized economy. autosap.cz+1

2. Scale and system integration extend well beyond the assembly halls into suppliers, logistics and testing, so process know-how (PPAP/APQP, in-line SPC, traceability) is widely diffused and underpins reliable just-in-time flows into Germany, France, Poland and beyond. Ministerstvo financí ČR

3. The ecosystem is actively pivoting toward electrified drivetrains and power semiconductors, boosted by anchor investments such as onsemi’s planned end-to-end SiC expansion in Rožnov that directly feeds EV, renewables and data-center power stacks. onsemi+2investor.onsemi.com+2

4. Sector economics remain resilient at the top line (CZK 1.57 tn sales) with strong wage and capability signals at OEMs, indicating room to pull suppliers up the value ladder if incentives and demand certainty align. autosap.cz

Four weaknesses (longer, candid sentences)

1. Demand concentration on the EU—especially Germany—creates macro-exposure, so changes in EU standards, sentiment or credit conditions transmit immediately into Czech order books and capacity utilisation. Ministerstvo financí ČR

2. The product mix remains ICE-heavy while EV demand is volatile, which squeezes parts makers tied to engines/exhaust and forces complex capex retooling into motors, inverters, and battery systems just as margins are tight. autosap.cz

3. Supplier profitability and skills are stretched, with parts & accessories employing the majority yet posting chronically lower returns on assets, making the EV transition financially and organisationally harder at the tier-2/3 level. Ministerstvo financí ČR

4. Policy/standards risk is elevated in a fast-moving regulatory arena, from EU emissions targets to trade and tariff gyrations that can whipsaw planning for electrified platforms and upstream inputs. Ministerstvo financí ČR

Five international examples — what to copy

1. Germany: Institutionalise OEM–supplier co-engineering programs (multi-year process-engineering roadmaps, tooling support, and digital quality gates) tied to measurable OEE/scrap/PPM improvements; this is how the German Mittelstand sustains global niches in components. (Context from EU/OECD and German industry data.) Ministerstvo financí ČR

2. Slovakia: Emulate focused EV program consolidation—fast permits, workforce pipelines tied to specific plants—and keep per-capita output leadership discipline (Slovakia remains world #1 per capita despite 2024 dip). European Alternative Fuels Observatory+1

3. Hungary: Study battery-chain anchoring (cells→packs→recycling) around CATL/others, pairing land, utilities and grid capacity with predictable incentives to shorten supplier distances for EV platforms. Reuters+1

4. Sweden: Pair green-power PPAs and fossil-free materials with auto supply (think HYBRIT/SSAB), using CO₂-intensity as a sourcing differentiator in OEM Scope-3. Climate Action+1

5. Japan: Codify TPS/lean routines upgraded with AI vision and predictive QA, so small suppliers achieve near-zero defects, faster changeovers, and stable takt at lower WIP. トヨタ自動車株式会社 公式企業サイト+1

Five priorities for Czechia (longer programmatic paragraphs)

1. Lock-in the EV & power-electronics pivot with a “4-node” cluster strategy.
   Designate 3–4 EV supplier parks (e.g., Mladá Boleslav corridor, Kolín–Kutná Hora, Ostrava region, Plzeň triangle) with pre-built utilities, wastewater, and guaranteed high-capacity grid connections plus green PPAs, and target a complete stack: e-motors, inverters, DC-DC, BMS, thermal, harnessing, and Si/SiC module packaging feeding onsemi’s Czech footprint; tie incentives to production energy-intensity, PPM, and supplier localisation milestones to derisk OEM capacity planning. onsemi

2. Digitise quality at scale through a national PPAP/APQP rail.
   Mandate machine-readable PPAP across new sourcing waves and co-fund adapters for the top MES/ERP used by SMEs; stream real-time SPC and vision-QA events to OEM portals so deviations trigger joint 8D acts within hours; publish anonymised benchmarks (OEE, scrap, energy per unit) to create friendly competition and give banks evidence for automation loans.

3. Re-skill the core with Dual-VET 2.0 and targeted immigration.
   Build plant-anchored micro-credentials (PLC, robot programming, GD&T, battery safety, high-voltage) stackable into technician diplomas, and run fast-track visas for shortage occupations (robot techs, process engineers, SiC process specialists) with recognisable national badges that OEMs and T1s can trust on day one. Ministerstvo financí ČR

4. De-risk energy and sites to defend margins through the cycle.
   Pre-permit brownfields with grid capacity and rail access, standardise long-term green PPAs for auto parks, and introduce “flex credits” for demand response and behind-the-meter storage, allowing suppliers to cut peak costs and meet OEM decarbonisation scorecards without bespoke negotiations each time.

5. Finance the transition with outcome-based incentives.
   Offer super-deductions and concessional credit only where firms commit to KPI-backed upgrades—e.g., +4–6 pp OEE, −30–50% defects, and a defined share of electrified drivetrain components within 24–36 months—so public money accelerates measurable competitiveness rather than sunk cost.

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2) Machinery & Equipment (NACE 28)

Status quo (2025)

Machinery is the engineering backbone that sells into autos, electronics, food, energy and construction: >5,200 companies, ~126,000 jobs, and an ~85% export ratio, with Czechia consistently ranking among Europe’s machinery specialists. czechinvest.gov.cz
Industrial momentum has re-accelerated in mid-2025 (machinery among the gainers), but fragmentation and mid-tech bias make scale-ups and brand-building uneven across sub-segments (machine tools, pumps, materials-handling, HVAC, packaging). ING Think

Size & share of GDP (what we can evidence)

• Headcount & footprint: ~126k employees, >5,200 firms, ~85% exports (engineering/machinery). czechinvest.gov.cz

• Manufacturing context: Manufacturing VA is roughly ~20% of GDP (multi-year average); within manufacturing, NACE 28 accounts for a meaningful single-digit share by sales and employment. That places direct NACE 28 VA in the low-single-digits of GDP (order-of-magnitude guide), consistent with Czech structural stats and Eurostat breakdowns. World Bank Open Data

Note: Eurostat/CZSO don’t publish a single headline “C28 % of GDP” each year; the above triangulates from official manufacturing shares and division-level weights (a transparent, conservative method).

Four strengths (longer, diagnostic sentences)

1. Breadth across general- and special-purpose machinery, with high customisation capability, makes the sector a natural “problem-solver” to Czech industry, and the ~85% export share proves its ability to meet demanding EU spec and certification regimes. czechinvest.gov.cz

2. Tight adjacency to the auto and electronics complexes gives small and mid-caps steady demand and fast feedback loops, so process improvements (precision machining, surface treatment, assembly automation) diffuse quickly across customer sets. ING Think

3. A long engineering tradition and dense vocational/university pipeline enable rapid prototyping of fixtures, tooling, and special machines, shortening lead times and supporting profitable custom jobs even when volumes are small. czechinvest.gov.cz

4. Near-shoring to the EU is structurally favourable to Czech machinery, because customers increasingly want EU law-compliant equipment, responsive service, and reliable spare parts within 24–48 hours. ING Think

Four weaknesses (longer, candid sentences)

1. Fragmentation and a mid-tech product mix limit pricing power, so many firms stay stuck as build-to-print suppliers rather than scaling into platform OEMs with service revenues (retrofits, predictive maintenance, remote support). (Pattern flagged across CEE manufacturing.) OECD

2. Capex and R&D intensity lag German/Italian peers, which shows up in slower adoption of digital twins, advanced controls, and mechatronic integration, and ultimately in weaker global branding. vdma.org+1

3. Energy and grid constraints can delay expansions for heat/process-intensive shops, while financing conditions mean smaller firms postpone productivity-enhancing upgrades when rates are high. ING Think

4. An ageing workforce and persistent shortages in CNC, PLC, and robotics skills increase delivery risk and labour costs, putting SMEs at a disadvantage versus better-capitalised EU competitors. EURES (EURopean Employment Services)

Five international examples — what to copy

1. Germany (machine tools): Copy structured supplier upgrading with export-credit backed demo lines, service-centric business models, and industry associations publishing open KPIs (OEE, MTBF) that help mid-caps close gaps; Germany’s VDW/VDMA transparently track volumes, prices and service to steer investment. vdma.org+1

2. Italy (packaging machinery): Emulate narrow-niche global leadership (food/pharma packaging, end-of-line robotics) plus aggressive export promotion and after-sales networks; Italy’s sector tops €10 bn with ~80% exports, powered by small firms that sell platforms, not just metal. wemakepackaging.it+2millingandgrain.com+2

3. Switzerland (MEM industries): Borrow quality-premium positioning and standards leadership (documentation, validation, safety) while offering EU-priced manufacturing from Czechia; Swissmem’s constant KPI tracking shows how discipline and certification sustain margins. Swissmem+1

4. Japan (automation & controls): Import design-for-maintainability and modular controls culture (FANUC-style simplicity, standard interfaces) so Czech machines are easier to service remotely, allowing global reach with lean service teams. (General TPS/lean canon.) トヨタ自動車株式会社 公式企業サイト

5. Austria (regional clusters): Build high-trust mechatronics clusters (Upper Austria model) that orchestrate joint R&D, training, and export missions, turning small firms into credible systems integrators for DACH markets. clustercollaboration.eu+1

Five priorities for Czechia (longer programmatic paragraphs)

1. From job-shops to platform OEMs: scale a “Czech Platforms” program.
   Select 50 machinery mid-caps across sub-sectors (machine tools, HVAC, materials handling, packaging, energy systems) and co-fund a two-year lift into platform businesses: add standardised control stacks, remote diagnostics, spare-parts portals, and performance-based service contracts (RaaS). Success metrics should include services ≥20% of revenue, export wins in 3 new EU markets, and MTBF/uptime guarantees aligned with German/Italian competitors. OECD

2. Digital twins & controls as the default.
   Offer a super-deduction for investments in digital twins, CNC/PLC upgrades, and sensorized retrofits, but only when firms publish anonymised before/after KPIs (cycle time, scrap rate, energy per unit) to a national benchmarking hub; align with university labs so SMEs can rent simulation time and controls expertise rather than hiring full-time specialists.

3. Precision manufacturing corridors with guaranteed power and water.
   Pre-permit industrial zones with stable grid capacity, compressed-air/water infrastructure, and rail access, and bundle standard environmental permits for heat-treat, coating, and machining fluids so expansions happen in months; link green PPAs to export marketing (“low-carbon equipment made in CZ”) to satisfy EU buyers’ Scope-3 filters.

4. Skills flywheel anchored in plant needs.
   Co-design micro-credentials (CNC programming, GD&T, metrology, robot commissioning, safety PLC, CE/UKCA compliance) with named employers; award portable badges recognised by banks and buyers to reduce perceived delivery risk; fast-track work visas for mechatronics/controls engineers to stabilise order books in peak cycles. EURES (EURopean Employment Services)

5. Export acceleration with proof-of-value.
   Stand up a Machinery Export Sprint that subsidises in-customer pilots (e.g., a Czech palletising cell running in a German food plant for 90 days) and pre-pays third-party certifications (CE/UKCA/UL) and functional safety audits; success equals repeatable case studies, referenceable customers, and 12-month conversion into multi-line orders, not brochureware.

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3) Electronics & Semiconductors (mainly NACE 26 + power-focused 27)

Status quo (2025)

Electronics in Czechia is moving from contract manufacturing toward power-electronics and semiconductor value-add, anchored by onsemi’s end-to-end SiC expansion in Rožnov (vertically integrated wafers→devices→modules) and a National Semiconductor Strategy aligned with the EU Chips Act. Modest growth returned in 2024 after a 2023 slump, supported by external demand and policy momentum; within manufacturing, electronics/electrical engineering remain among the largest divisions by output. cefic+3onsemi+3mpo.gov.cz+3

Size & share of GDP

• Electronics/electrical engineering account for >14% of total manufacturing output, making the segment one of the country’s top industrial pillars; manufacturing as a whole is ~20% of GDP, so the direct GDP share of NACE 26/27 is non-trivial and rising as power-electronics scales. (Eurostat/CZSO don’t publish a single “C26/C27 % of GDP” headline; the manufacturing share and division weights are the correct basis for triangulation.) Mauritius Trade Easy+1

Four strengths

1. A credible anchor in SiC and power semiconductors now exists, giving Czechia a strategic position in EV drivetrains, renewable inverters, industrial motion, and data-center power where demand visibility is strongest. onsemi

2. Policy alignment is unusually tight (national strategy + EU Chips ecosystem), which shortens the path from lab assets to pilot lines and makes Czechia legible to global suppliers considering EU footprints. mpo.gov.cz

3. A deep industrial customer base sits next door—auto, machinery, and energy firms that can absorb power devices and modules—so “sell-local first” pathways for new products are realistic. Statistika

4. Established electronics manufacturing capabilities and logistics make it feasible to scale OSAT/test, module packaging, and power-electronics assembly with competitive costs and lead times. Mauritius Trade Easy

Four weaknesses

1. Engineering and operator depth in front-end semiconductor processes is still thin, so wafer-fab ramp-ups face skills bottlenecks without targeted talent programs and selective immigration. mpo.gov.cz

2. Supplier lattice for specialty inputs (SiC substrates, gases, CMP, metrology) is incomplete, raising import dependence and supply risk for advanced nodes in power devices. onsemi

3. Global cycle exposure is real—electronics is volatile and capex-intensive; Czech SMEs need buffers and export credit to ride down-cycles without derailing programs. Statistika

4. Permitting and utility lead times at industrial sites can still lag investor expectations, especially for high-power, high-purity facilities that require robust grid capacity and water management. mpo.gov.cz

Five international examples — what to copy

1. Taiwan: Build supplier enablement playbooks for chemicals, tools, and metrology tied to anchor fabs; co-locate certification and rapid-response service cells so downtime is measured in hours, not days.

2. Germany (Infineon/Siemens/Fraunhofer): Pair power-semi manufacturing with strong application labs (e-mobility, industrial drives) so device design is pulled by real platform roadmaps.

3. United States (CHIPS hubs): Use milestone-based incentives (tool move-in, yield, qualification) and prioritize OSAT/test and module packaging to create jobs quickly while front-end capacity ramps.

4. Japan (Rohm/Fuji Electric): Institutionalize SiC process know-how diffusion—structured training ladders from epitaxy to reliability—so yield learning survives staff turnover.

5. South Korea: Combine clustered power, water, and clean-room utilities with export-finance instruments so local module makers can win Tier-1 EV/energy contracts without balance-sheet constraints.

Five priorities for Czechia (long form)

1. Lock in a four-node power-electronics cluster (Rožnov–Ostrava–Mladá Boleslav–Plzeň) with pre-permitted sites, guaranteed high-capacity grid connections, wastewater and gas infrastructure, and standard green-PPA templates. Tie incentives to SiC/Si device yield milestones, module qualification with EU OEMs, and local supplier share, so public support converts into sticky capability rather than one-off construction. onsemi

2. Stand up a national “SiC Academy” and fast-track visas for epitaxy, diffusion, CMP, implant, and reliability engineers; publish portable micro-credentials for technicians (clean-room protocol, metrology, high-voltage safety) that employers and banks can trust in hiring and equipment financing. mpo.gov.cz

3. Create an “applications pull” program that co-funds in-country reference designs—motor drives, traction inverters, DC-fast chargers, PV/hybrid inverters—with local OEMs; success equals qualified BOMs containing Czech power modules and public case studies that de-risk export sales cycles.

4. Build an OSAT/test and module-packaging ecosystem first, where learning curves and capex per job are favorable, while front-end wafer capacity scales; weave in reliability labs that certify to automotive and grid codes to raise switching costs for buyers.

5. Finance the ramp with outcome-based tools—export credit linked to PPM, efficiency, and thermal performance targets; loan guarantees that step down as yield and customer diversification thresholds are met; and a semiconductor supplier matching fund to localize gases, parts, and services within 18–24 months.

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4) Chemicals & Pharmaceuticals (NACE 20 + 21)

Status quo (2025)

Chemicals remain one of Czechia’s largest manufacturing complexes by sales, spanning petrochemicals, basic and specialty chemicals, rubber/plastics, and pharma inputs; the sector was hit by Europe’s energy shock but has been adapting through energy efficiency and product-mix shifts. Pharmaceuticals are structurally pro-export and recovered in 2024; e-Prescription penetration is near-universal, strengthening compliance and real-world-data opportunities that matter for clinical research and market access. cefic+2Statistika+2

Size & share of GDP

• Chemicals (integrated view NACE 19.2/20/21/22): traditionally #2 manufacturing industry by sales; ~13.5% of total industrial production (indicative share, CEFIC). cefic

• Pharmaceuticals: exports reached ≈ US$4.4 bn in 2024, a series high; the domestic market is ~US$5.4–5.5 bn in 2025 by private-sector estimates, growing mid-single-digits. (Direct “NACE 21 % of GDP” is not published as a single headline; export and market-size data are the defensible proxies.) Trading Economics+1

Four strengths

1. Chemicals remain a diversified, nationally distributed base industry with strong clusters in North-West Bohemia, North Moravia, and Central Bohemia, giving the country broad materials self-reliance and exportable intermediates. cefic

2. Pharma has resilient export dynamics and an active clinical-research footprint, with hundreds of trials annually and growing capabilities in complex generics and contract manufacturing. České Noviny

3. Near-universal e-Prescription infrastructure creates clean integration points for pharmacovigilance, adherence programs, and pharmaco-economics analytics that are difficult to build elsewhere. ePreskripce

4. Proximity to DACH markets and strong logistics make Czechia attractive for fill-finish, secondary packaging, and CDMO activities that prize EU compliance and dependable lead times. Trading Economics

Four weaknesses

1. Chemicals are energy- and carbon-exposed, so cost curves remain vulnerable to gas/power volatility and to CBAM/ETS pass-throughs unless electrification and fuel-switching accelerate. schp.cz

2. Scale disadvantages in originator pharma and biologics limit the local pipeline; without focused niches, the country risks staying a peripheral manufacturing site rather than capturing higher-margin development work. cefic

3. Regulatory and pricing frameworks can compress margins, discouraging investment in complex products without predictable, data-driven market-access pathways. ČT24

4. Skilled-labor bottlenecks in GMP operations, QC/QA, and process analytics slow expansions and increase the cost of quality, especially for SMEs. cefic

Five international examples — what to copy

1. Ireland (innovator & biologics hub): Combine predictable market-access and talent visas with bioprocess training centers; require published process KPIs (batch yields, deviations) as part of incentives so capability sticks.

2. Switzerland (innovation premium): Emulate documentation discipline, global QA culture, and regulatory science depth; offer fast-track support for CMC changes and comparability packages to attract late-stage transfers.

3. Denmark (biotech + devices): Build end-to-end diabetes/obesity and sterile-fill clusters where university labs, hospitals, and manufacturers co-design trials, data, and manufacturing protocols.

4. Belgium (vaccine & cell/gene network): Copy the GMP campus model with shared QC/QA labs and third-party testing, lowering capex for SMEs and enabling faster tech-transfer.

5. Slovenia (export-oriented generics): Adopt focus-niche excellence (e.g., complex generics, HPAPI handling) with disciplined global marketing and post-approval quality systems that make small countries competitive.

Five priorities for Czechia (long form)

1. Decarbonise chemicals with project-finance-ready playbooks—electrified steam, heat-pump integration, hydrogen for specific processes, and standard green-PPA templates for chemical parks—so plants can defend margins under ETS/CBAM while winning Scope-3-sensitive buyers; publish anonymised energy-per-ton and CO₂-per-ton benchmarks to unlock cheaper capital. schp.cz

2. Scale a Czech CDMO/bioprocess corridor that targets sterile fill-finish, lyophilisation, and controlled-release generics, co-funding shared QC/QA and validation labs and a GMP talent academy; success is measured by tech-transfers landed, right-first-time batches, and EU/US approvals within 24–36 months.

3. Exploit e-Prescription rails for real-world evidence (RWE) and adherence, integrating pharmacy data (with consent) into outcomes-based agreements; make Czechia a pilot market for value-based contracts that pay for clinical outcomes, not only volume. ePreskripce

4. Clinical-trials magnet program—fast ethics turnaround, single-contract templates, central study-startup teams, and tax offsets tied to patient recruitment speed and protocol adherence—to raise the country’s share of global trials and anchor later manufacturing steps. České Noviny

5. Regulatory predictability for complex products—publish transparent timelines and data expectations for price/reimbursement of biologics, biosimilars, complex generics, and ATMPs; align SÚKL processes with HTA best practice and set service-level targets that reduce investor uncertainty. SÚKL

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5) Metals & steel (basic metals + fabricated metal products)

Status quo (2025)

Czech steel and metals are in a difficult but pivotal transition: crude steel output fell to about 2.4 Mt in 2024, the lowest in modern statistics, reflecting weak EU demand, high energy prices, and the deep troubles of LIBERTY Ostrava (court-approved reorganisation/insolvency proceedings and repeated idling), while Třinecké železárny maintained production and the large fabricated-metals ecosystem (cutting, machining, stamping, welding) stayed busy thanks to automotive and machinery orders, albeit on thinner margins; policy pressure from EU ETS Phase IV and CBAM is rising, pushing producers to electrify, use more scrap, and invest in DRI/H₂ pathways and energy-efficiency upgrades even as access to affordable low-carbon electricity remains the binding constraint. Statistika+3ReportLinker+3Statistika+3

Size & share of GDP (what’s a reasonable, current view)

• Crude steel: ~2.4 Mt in 2024 (down sharply from pre-2022 levels). ReportLinker

• Industry weight: Using Eurostat national accounts by detailed industry, C24–C25 (basic metals + fabricated metal products) typically generate roughly one-tenth of Czech manufacturing value added; with manufacturing at ~20% of GDP, that maps to ~2–3% of GDP for metals/fabricated metals, depending on the year and price effects (range is deliberate to avoid false precision). European Commission+1

Four strengths (longer sentences)

1. Deep capabilities across the full value chain mean Czechia can go from steel slab and long products to highly precise fabricated components under one roof or within a short truck drive, which gives OEMs in autos and machinery a responsive, quality-controlled supply base that is unusually dense for a country of 10.9 million people.

2. Export-embeddedness into Germany, Austria and the wider DACH supply chains provides steady volumes, certification know-how (EN 1090, IATF 16949) and process discipline, which is a harder-to-copy advantage than hourly labour cost alone.

3. Scrap availability and EAF tradition in portions of the sector create a credible platform for faster decarbonisation through higher scrap charges and EAF upgrades, which is the most capital-efficient near-term path to lower CO₂ steel in Central Europe.

4. A large fabricated-metals SME base is already digitising (CNC/robotic cells, MES, inline QC), which makes it easier to layer AI for scheduling, NDT image recognition and energy optimisation, thereby improving delivery reliability and specific energy consumption per tonne.

Four weaknesses (longer sentences)

1. Energy price volatility and grid constraints have eroded cost competitiveness versus producers with long-term fixed price PPAs or access to very cheap hydro/nuclear, which makes every decarbonisation decision also an electricity-procurement decision rather than purely a technology choice. czechtradeoffices.com

2. Balance sheets stretched by 2022-2023 energy shock and demand softness limit the sector’s ability to co-finance major capex (DRI modules, EAF replacements, waste-heat-to-power), which risks a slow transition compared with peers benefiting from massive state-aid packages. czechtradeoffices.com+1

3. Policy risk from CBAM + ETS is material because exporters into the EU who cannot prove low embedded emissions will face rising carbon costs at the border or in allowances, and certification/admin burden is non-trivial for SMEs. Statistika

4. Concentration risk around a few big sites and customers means any outage or OEM model change can propagate quickly into layoffs and cash-flow stress across many smaller fabricators tied to that node.

Five international examples — what to copy

1. Sweden (HYBRIT / H2 Green Steel): Pair steel decarbonisation with secure, large-scale green-power access and hydrogen storage; copy: anchor projects that bundle permits, grid upgrades, H₂ logistics and offtake with vehicle OEMs. HYBRIT+2Vattenfall+2

2. Germany (tkH₂Steel at Thyssenkrupp, SALCOS at Salzgitter): Use targeted state-aid and EU approvals to de-risk first-of-kind capex and tie milestones to emissions cuts; copy: a Czech scheme focused on EAF retrofits, scrap sorting and waste-heat, aligned with EU rules. thyssenkrupp+1

3. Austria (voestalpine greentec steel): Sequence transition with EAF first, DRI later, combined with grid reinforcement and EIA certainty; copy: plan Czech switching windows around maintenance cycles and grid build-out. GreenSteelWorld.com+2voestalpine AG Annual Report 2024/25+2

4. Basque Country, Spain (Industrial Super-Cluster): Build cross-cluster decarbonisation platforms (energy, skills, data) that serve metals, machine tools and chemicals together; copy: Moravian-Silesian “green industrial cluster” with shared services. SPRI+1

5. Italy (Brescia-Lombardy long-products & circularity): Scale high-quality scrap management and by-product valorisation to cut costs and emissions; copy: national quality protocol for scrap, slag and off-gas utilisation for Czech EAFs. feralpi-stahl.com+1

Five priorities for Czechia (longer, actionable)

1. Lock in predictable low-carbon electricity for industry by combining state-backed long-term PPAs from Czech nuclear/RES, accelerated grid upgrades in Moravia-Silesia and Olomouc, and priority connection queues for EAF and heat-pump projects, because decarbonisation economics hinge on €/MWh and connection timing, not only on furnace technology. czechtradeoffices.com

2. Create a Metals Transition Contract (MTC) that co-funds EAF retrofits, high-grade scrap sorting, oxy-fuel upgrades and waste-heat recovery, with disbursements tied to verified tCO₂e reductions and CBAM reporting readiness, so SMEs move in lock-step with primes and capture carbon premia in tenders. Statistika

3. Stand up a national ‘green-steel’ procurement playbook for public works and rail/defence that recognises near-zero material EPDs, thereby giving first domestic offtake for low-emissions sections, wire rod and plate, which helps unlock project finance similar to German and Austrian models. thyssenkrupp+1

4. Digitise the fabricated-metals backbone by co-funding AI scheduling, inline vision for weld/edge defects, and energy-MES modules for 2,000+ metal SMEs, because cycle-time and scrap-rate improvements of even 3–5% compound into sector-level competitiveness and lower embodied emissions.

5. Build a circular-materials market that standardises scrap grades, slag applications and by-product exchanges with guaranteed quality specs and quick payment rails, reducing raw-material volatility while improving EAF charge stability, emulating the Brescia-style ecosystem. feralpi-stahl.com

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6) Food & beverage manufacturing (incl. beverages; NACE C10–C12)

Status quo (2025)

Czech food & beverage manufacturing is stable, resilient and domestically oriented, with standout export niches in brewing and malt, while 2023–2024 brought intense margin pressure from energy and packaging costs and a sluggish consumer that only started to recover in 2024; even so, breweries posted record exports in 2024 and the retail market is consolidating with a rising share of private labels, and the policy conversation is shifting from acute inflation relief to automation, reformulation, and sustainability certification to keep pace with EU peers. ocelarskaunie.cz+1

Size & share of GDP (what’s a reasonable, current view)

• Beer benchmark: Czech breweries produced ~20.9 million hl in 2024 (↑ ~4%), with exports ~5.9 million hl (record) and strong non-alcoholic growth. ocelarskaunie.cz+1

• Retail context: Food retail revenue was ~$25.1 bn in 2024 (value terms), signalling the downstream market scale that processors serve. USDA FAS Applications

• Industry weight: Eurostat’s national-accounts breakdown (C10–C12) typically places food & beverages at roughly a tenth of manufacturing value added, implying ~2% of GDP in Czechia given ~20% manufacturing share (again, range not a point estimate). EU-wide, food & drink is ~11.4% of manufacturing VA, which supports this order of magnitude. European Commission+1

Four strengths (longer sentences)

1. World-class brewing and malting capabilities give Czechia a globally recognised premium category with strong brand equity and technical depth, which spills over into packaging innovation, process control and export marketing skills that other subsectors can reuse. ocelarskaunie.cz

2. Dense supplier networks in dairy, meat processing, bakery and confectionery allow short lead times and reliable sourcing, which is a structural advantage when European logistics are disrupted or when retailers push frequent assortment changes.

3. Food safety culture and EU compliance maturity reduce risk for international buyers and make it easier to expand private-label contracts that demand consistent HACCP/BRC/IFS performance.

4. Fast-growing non-alcoholic and better-for-you lines (e.g., NA beer, reduced-salt bakery, high-protein dairy) indicate an innovation muscle that can be redirected to reformulation and nutritionally profiled products for export retailers.

Four weaknesses (longer sentences)

1. Energy, packaging and labour cost shocks in 2022–2024 squeezed margins and deferred capex, so a chunk of the sector is running with older lines and lower automation than peers in Denmark or the Netherlands, which shows up in higher unit costs and more volatile quality. foodnet.cz

2. High dependence on a few big retail chains and on private labels compresses manufacturer bargaining power, which makes it harder to finance brand-building and to pass through commodity spikes without volume loss. foodnet.cz

3. Fragmented SME structure means many plants are sub-scale for advanced robotics and in-house data teams, so the “digital leap” to AI-enabled QC, predictive maintenance, and end-to-end traceability is slower than in top EU clusters.

4. Limited international marketing and origin programmes outside beer leaves value on the table in cheeses, cured meats, bakery and convenience foods, especially when compared with highly coordinated PDO/PGI regions. investinemiliaromagna.eu

Five international examples — what to copy

1. Ireland (Origin Green): A national sustainability programme aligning farms, processors and brands with measurable targets unlocked export resilience — copy the single label + audited KPIs model to earn retail shelf space and green-procurement points. Bord Bia+1

2. Netherlands (Foodvalley NL): A networked innovation ecosystem that accelerates protein transition, upcycling and healthier foods; copy shared testbeds, scale-up kitchens and pilot lines so Czech SMEs can trial products without full capex. Foodvalley+2Foodvalley+2

3. Denmark (Food Nation & automation culture): Robotics, hygienic design and data-driven processing pushed costs down while lifting quality and sustainability; copy sector playbooks for automated cutting, pick-and-place, and CIP optimisation. Food Nation+1

4. Italy (Emilia-Romagna ‘Food Valley’): Strong origin systems (PDO/PGI) tied to export storytelling lift margins and defend against private-label substitution; copy origin-linked branding for Czech categories with authentic terroir and processes. investinemiliaromagna.eu

5. Singapore (SFA): End-to-end digital food-safety infrastructure (e-certs, risk-based inspections, operator grading) reduces compliance overhead; copy digital first licensing and inspection to lower SME admin burden while raising trust. Default+1

Five priorities for Czechia (longer, actionable)

1. Stand up “Origin Czechia – Food” as a single, audited, export-facing sustainability and quality mark that aggregates existing schemes (KLASA, regional foods) into a retailer-friendly label with hard KPIs on emissions, water, nutrition and packaging, because a one-stop proof point is now a commercial prerequisite in Northern Europe and can lift private-label tender win-rates. Bord Bia

2. Create three national food-tech pilot hubs (Prague, South Moravia, Moravian-Silesian) with shared robotics cells, vision-QC labs, and clean-room test kitchens priced for SMEs, so processors can trial NA beverages, high-protein dairy and ready-meals on semi-industrial lines without risking balance sheets, mirroring Dutch and Danish shared-infrastructure models. Foodvalley+1

3. Digitise compliance and traceability end-to-end by rolling out e-certificates, digital batch passports (GS1 EPCIS) and risk-based inspections, so that audits become data pulls rather than paper chases and Czech exporters can integrate seamlessly into UK/EU retailer portals. Default

4. Target five export “hero categories” beyond beer (e.g., lactose-free dairy, fermented bakery, better-for-you snacks, infant/clinical nutrition components, and premium ready-to-eat) with co-marketing, reformulation grants and shelf-access programmes in DE/AT/NL, because focused category bets beat thin, general support. FoodDrinkEurope

5. Back an automation & AI refresh across 1,000 SME plants with 40–60% grants/loans for hygienic robotics, automated packaging, inline spectroscopy and AI-based QC, coupled with energy-efficiency upgrades, to cut unit costs 5–10%, raise OEE, and free scarce labour for higher-value tasks — measurable, not aspirational. Food Nation

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7) Energy & utilities (electricity, gas, heat & related networks — NACE D35)

Status quo (2025)

Czechia is in the middle of a structural energy pivot: nuclear remains the system backbone while the country advances a coal phase-out by 2033, adds renewables, and prepares major new nuclear capacity at Dukovany (KHNP selected as preferred bidder in July 2024, with legal protests since then largely cleared in April 2025, allowing contracts to proceed). The policy direction is clear—CEZ targets a coal exit by 2033 and large-scale decarbonisation of power and heat—yet execution hinges on grid build-out, predictable clean-power pricing, and timely delivery of generation and storage. Skupina ČEZ - Produktová sekce+3Radio Prague International+3World Nuclear News+3

Size & share of GDP (what we can evidence)

• In national accounts, Electricity, gas, steam & AC supply (NACE D35) contributes a low single-digit share of GDP/GVA in Czechia (think ~3–4% by order of magnitude in recent years), with volatility driven by energy prices and margins; Eurostat/CZSO publish the GVA by industry series, but not as a single headline percent each year. The order-of-magnitude statement is consistent with Eurostat’s “GVA by main industry” tables and CZSO sector notes. European Commission+1

• Directionally important system facts: coal is being phased out by 2033; new nuclear at Dukovany is the flagship baseload project; CEZ’s plan is to cut the coal share to ~12.5% by 2030 and fully exit by 2033, while increasing zero-carbon generation and storage capacity. Beyond Fossil Fuels+2Reuters+2

Four strengths (longer sentences)

1. A robust nuclear backbone gives Czechia a rare base of low-carbon, dispatchable generation in Central Europe, which stabilises wholesale prices and supports industrial competitiveness compared with peers that rely heavily on imported gas or weather-dependent generation. IEA

2. A clear long-term build signal exists—new units at Dukovany and potential at Temelín—paired with a dated but actionable coal-exit timeline, which creates planning certainty for manufacturers and network operators to size investments in electrification, storage, and demand response. World Nuclear News+1

3. The national champion CEZ has an articulated decarbonisation strategy with SBTi-aligned targets, meaning capital markets, municipalities, and large customers have a credible counterpart for long-dated PPAs and grid-support projects. Skupina ČEZ - Produktová sekce

4. Power-system learning from the 2022–2023 shock has improved risk management and efficiency on both the supply and demand sides, with consumption and gas use reductions creating headroom for a cleaner build-out without near-term adequacy risk. eru.gov.cz

Four weaknesses (longer sentences)

1. Connection queues and grid reinforcement remain a binding constraint for large loads and new generation, so timelines for industrial electrification, data centres, and storage still depend as much on substations and lines as on turbines and reactors.

2. Exposure to legal and procurement risk around the nuclear programme injects timing uncertainty, which can delay complementary investments (supplier parks, heat-pump conversions, e-mobility charging) that depend on firm delivery dates for low-carbon baseload. AP News

3. District-heating and CHP assets are heterogeneous in age and fuel mix, making the heat decarbonisation path plant-specific and administratively heavy unless a template solution set (electrification, waste-heat, large heat pumps) is scaled.

4. Retail and network tariff structures have been volatile (post-crisis cost reallocation), complicating corporate PPA decisions, on-site generation economics, and SME investment planning. eru.gov.cz

Five international examples — what to copy

1. France (nuclear + PPAs): Use sovereign-backed, standardised long-term nuclear PPAs for industry to anchor electrification, giving CFO-grade price certainty that unlocks capex in metals, chemicals and mobility.

2. Finland/Sweden (grid & flexibility): Copy rapid grid reinforcement with transparent queue management and capacity markets so batteries/DR get bankable revenue stacks, reducing curtailment and balancing costs.

3. UK (CfD model for RES & storage): Extend Contracts for Difference beyond wind/PV into long-duration storage pilots, de-risking merchant exposure and accelerating firm clean capacity.

4. Slovakia/Hungary (nuclear project delivery): Replicate single-purpose project vehicles and state-utility cooperation to keep schedules and interfaces tight on nuclear builds, while ring-fencing supply-chain localisation.

5. Denmark (heat decarbonisation): Scale large heat pumps, thermal storage and waste-heat capture in district-heating, standardising procurement and controls to reduce LCOH and speed replication.

Five priorities for Czechia (long form)

1. Make grid capacity a product, not a process. Create a national grid build-plan with quarterly published heatmaps and firm connection windows, prioritising industrial zones and renewable clusters; pair this with accelerated permitting and standard substation packages, so factories and IPPs can synchronise equipment orders with grid delivery, cutting 12–24 months off lead times.

2. Lock in clean baseload price certainty for industry. Launch standard long-term PPA templates indexed to nuclear output (and bundled RES where appropriate), available to qualified industrials and municipal utilities, with state credit support that tapers as the system decarbonises; this converts the nuclear pipeline into immediate capex triggers for electrification across metals, machinery and e-mobility supply chains. World Nuclear News

3. Scale a ‘heat transition kit’ for district heating. Publish reference designs for converting coal CHP to combinations of large heat pumps, electric boilers, thermal storage and waste-heat integration, with model business cases and standardized tenders; tie subsidies to delivered gCO₂/kWh-heat and LCOH improvements, not to capex alone.

4. Turn flexibility into a bankable market. Enhance ancillary services and capacity remuneration for batteries and demand response, permitting multi-year contracts that meet lender requirements; require open telemetry so SMEs can join aggregators without bespoke IT, and publish curtailment/imbalance dashboards to guide siting.

5. De-risk the nuclear schedule interface. Maintain transparent milestone reporting (tender challenges, site works, long-lead components) and publish dependency maps (e.g., when supplier-park PPAs can be signed) so private investors can move in parallel; this is cheap policy that cuts the real option value firms currently hold back due to timing fog. Reuters

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8) Construction & real estate (construction — NACE F; real estate — NACE L)

Status quo (2025)

After a tough 2022–2023, construction output rebounded through 2024 into 2025, with CZSO reporting CZK ~695.8 bn of construction works (current prices) in 2024 and strong y/y prints at the end of the year even as housing starts lagged; on the commercial side, Prague offices saw a vacancy drop to ~7.3% in Q4 2024 amid the lowest new-supply year on record, indicating demand for quality space but chronic permitting and delivery bottlenecks. Civil engineering is supported by EU funds, rail and road programmes, yet capacity and inflation risks persist. Statistika+2Statistika+2

Size & share of GDP (what we can evidence)

• Construction works (current prices): CZK 695.8 bn in 2024, a useful scale marker (note: “works” is gross output, not value added). Statistika

• In GVA terms, narrow construction typically accounts for ~5% of GDP, and real-estate activities for ~9% (illustratively 2020 shares from the European Construction Sector Observatory), placing the broad construction-real-estate complex among the largest contributors to the economy. Recent CZSO quarterly notes confirm construction’s positive y/y contribution in late-2024. Internal Market & Industry+1

• Prague offices: Vacancy ~7.3% in Q4 2024 with historically low completions, which tightens prime space and supports rent resilience. assets.cushmanwakefield.com+1

Four strengths (longer sentences)

1. A diversified ecosystem across building, civil engineering, and specialised trades allows Czechia to execute complex transport and utility projects, while a deep bench of contractors and design firms sustains competitive tendering and rapid mobilisation when financing is clear. Statistika

2. The Prague office market’s low new-supply and declining vacancy signal durable demand for high-quality, energy-efficient buildings, which creates a price umbrella for deep retrofits and encourages institutional capital to back green-premium assets. assets.cushmanwakefield.com

3. EU-funded civil works and national programmes provide multi-year visibility for rail, roads, and municipal infrastructure, letting firms invest in equipment, BIM capability, and workforce development with greater confidence. Statistika

4. A growing base of BIM-literate designers and contractors is emerging, making it feasible to scale digital delivery (4D/5D scheduling, clash detection, as-built data) that lowers risk, shortens schedules, and improves whole-life asset performance.

Four weaknesses (longer sentences)

1. Permitting remains a systemic bottleneck, especially for housing and larger urban redevelopments, leading to long pre-construction periods that inflate risk premia, delay cash flows, and depress overall supply responsiveness.

2. SME fragmentation and uneven adoption of BIM and digital QA/QC leave coordination gaps on multi-trade projects, increasing rework, change orders, and disputes that ultimately raise delivered costs for both public and private clients.

3. Input-cost volatility (materials, labour, financing) since 2022 has compressed contractor margins, so firms often defer capex in equipment and training, perpetuating productivity gaps versus EU leaders.

4. Residential market affordability remains strained as mortgage qualification and price-to-income ratios deter demand, which feeds back into lower starts and a more cyclical construction orderbook.

Five international examples — what to copy

1. Denmark (digital-first delivery): Mandate BIM for public works with open standards and publish model exchange information requirements (EIRs), which cut rework and speed approvals.

2. Netherlands (planning & infrastructure): Use integrated corridor programmes that bundle rail/road/utility upgrades with standard environmental baselines so multiple projects can proceed under one strategic EIA, slashing permitting time.

3. Austria (prefab/off-site): Scale industrialised construction (timber, modular, MEP skids) to lift productivity and reduce site risk in housing and schools, while meeting energy codes affordably.

4. UK (contracting models): Adopt alliancing/NEC-style contracts with shared KPIs and pain/gain mechanisms for complex public works, aligning incentives across client, designer, and contractors.

5. Germany (green leases & retrofit codes): Tie performance-based retrofits to finance via green-lease clauses and standard measurement & verification, crowding private capital into deep energy upgrades of existing stock.

Five priorities for Czechia (long form)

1. Fast-track permitting with standardised digital pathways. Stand up a national digital permitting portal with pre-filled data from cadastral and utility maps, publish statutory response SLAs, and roll out pattern-book approvals for repeatable housing typologies; the goal is to take months off approvals while preserving environmental due diligence.

2. Make BIM non-negotiable for public works and incent it for private projects. Require open-BIM deliverables (IFC, digital twins, asset data dictionaries) on central-government projects and co-fund SME adoption (training + software) tied to verifiable reductions in RFIs/rework; link as-built data directly to facility management to capture whole-life value.

3. Create “prefab corridors” and industrial parks for off-site construction. Pre-permit brownfields with rail access, crane yards, and logistics, and tender framework agreements for schools, clinics, and municipal buildings using modular kits; this pulls demand forward for Czech prefab manufacturers and flattens project risk profiles.

4. Retrofit at scale with performance guarantees. Launch a deep-retrofit programme for public and multi-family stock that co-funds works only when accompanied by energy-performance contracts and robust M&V, channelling EPC providers and green lenders into a repeatable playbook that steadily upgrades the national building stock.

5. Stabilise delivery economics with smart risk sharing. For large projects, adopt alliancing contracts that cap downside through shared contingency and give upside for verified schedule/energy-performance gains; pair this with indexed materials clauses and access to state-backed guarantees so healthy mid-caps can bid confidently even in volatile markets.

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9) Transport, logistics & CEP (NACE H: transportation & storage, incl. road/rail/air/warehousing/CEP)

Status quo (2025)

Czechia’s freight system remains road-dominant with rail as a strong secondary mode and air playing a growing role for belly cargo and high-value traffic; 2024 saw a broad recovery in transport & storage sales (+4.6% y/y) led by land transport and warehousing, while rail freight volumes were dented by the September 2024 floods that temporarily interrupted the main corridor to Ostrava, and air transport demand finally exceeded 2019 levels as Prague Airport handled 16.35 million passengers, +18% y/y, serving 181 destinations—a demand backdrop now feeding into new long-haul routes and a multi-year airport modernization. Statistika Letiště Václava Havla Praha, Ruzyně

Size & share of GDP (what we can evidence)

• Scale indicators: In 2023, CZSO reports 64,806 million tonne-km for road freight performance, 82,433 million tonne-km total goods-transport performance across modes, 2.50 billion passengers carried in public passenger transport, and 38,236 million passenger-km—useful order-of-magnitude anchors for the sector’s throughput. Prague Airport processed 16,353,522 passengers in 2024 with 134,609 movements. Statistika+2Statistika+2

• GDP/GVA framing: In national accounts, Transportation & storage (NACE H) generally contributes a mid-single-digit share of GVA in Czechia (order of ~5%), varying by cycle and price effects; Eurostat’s nama_10_a10 dataset is the primary source for the exact annual shares. A useful structural datapoint is that the job-vacancy rate in transportation & storage was 4.5% in 2023—well above the EU average (2.2%)—signalling chronic labour tightness. European Commission+1

Four strengths (longer sentences)

1. A central European location with dense cross-border motorway and rail links gives Czech shippers and 3PLs reliable, same-day reach into Germany, Austria, Poland and Slovakia, which supports export manufacturing and makes the country a natural consolidation point for regional distribution.

2. A resilient road-freight base and competitive warehousing/support activities provide capacity and flexibility to absorb shocks and seasonal peaks, with sales in warehousing and support activities rising in 2024 and CEP networks continuing to mature around Prague and key industrial zones. Statistika

3. Rail retains one of the higher EU modal shares among landlocked countries (around 21.5% of freight t-km in 2023), which gives policy makers a credible platform for decarbonisation and intermodal growth without starting from scratch. European Commission

4. Air connectivity recovered strongly and is now expanding beyond Europe via new long-haul routes, which not only boosts tourism but also raises belly capacity for time-sensitive exports and high-value imports tied to electronics, pharma and luxury goods. Letiště Václava Havla Praha, Ruzyně

Four weaknesses (longer sentences)

1. Labour shortages—especially HGV drivers, mechanics and dispatchers—constrain growth and raise operating costs, with vacancy rates in transport and storage well above the EU average and limited domestic slack to tap. Economy and Finance

2. Rail faces reliability and capacity bottlenecks on key corridors and is vulnerable to weather-related disruptions, as evidenced by the 2024 flood-related interruption to the Ostrava corridor that rippled through schedules and customer SLAs. Statistika

3. Digital paperwork and data exchange across the logistics chain remain fragmented, so shippers, carriers and authorities still juggle PDFs and portals rather than truly interoperable data rails despite an EU push to standardise. EUR-Lex+1

4. Airport surface access is still suboptimal because the long-planned rail link to Václav Havel Airport is only now moving into delivery, creating avoidable frictions for passengers and (to a lesser extent) for high-value logistics until the new underground station opens around 2030. Prague Daily News+1

Five international examples — what to copy

1. Netherlands / EU eFTI (paperless freight): Implement fully paperless freight with eFTI-ready processes, mandating digital acceptance of documents by authorities and standard APIs between shipper, carrier and customs; this reduces dwell times and audit costs. Mobility and Transport

2. Poland (road-freight scale & toll digitalisation): Borrow the e-TOLL playbook and enforcement cadence to keep road networks funded and safe while using toll data for network planning and emissions analytics. e-TOLL

3. Austria (rail modal share & intermodal): Emulate consistent rail-freight policy and terminal investment that lifted rail’s share close to 30%—focus on paths, terminals, last-mile sidings and reliable pricing. European Commission

4. Germany/Austria (open rail access with strong national operators): Encourage competitive access plus capable incumbents (e.g., Rail Cargo Group) to run high-frequency, corridor-based services and partner with ČD Cargo/Metrans for network effects. Rail Cargo Group

5. Singapore (integrated air-cargo/CEP community): Build a true cargo community system around PRG linking handlers, airlines, customs and CEPs for slotting, traceability and one-touch clearance.

Five priorities for Czechia (long form)

1. Make intermodal the default on export corridors. Publish a corridor-level plan (DE/CZ/PL/SK interfaces) that ties terminal expansions, siding grants and freight-path capacity to a five-year timetable; subsidise first/last-mile rail sidings at industrial parks and condition grants on verified modal shift and service reliability KPIs.

2. Turn paper into data—end-to-end. Mandate eFTI-compliant data exchange for regulatory reporting, require public authorities to accept electronic freight data and co-fund eCMR rollout for SMEs; create a national logistics data hub offering secure APIs, audit trails and consent management so shippers can share once and reuse everywhere. EUR-Lex+1

3. Close the airport access gap. Keep the Prague–Airport–Kladno rail programme on a transparent milestone dashboard (permits, PPP award, works windows) and align terminal, cargo apron and road upgrades with the rail opening to maximise passenger and cargo benefits from day one. Prague Daily News+1

4. Professionalise capacity markets and resilience. Expand heavy-vehicle rest facilities, driver amenities and safe parking, implement dynamic winter/weather response playbooks on rail/road, and publish real-time capacity heatmaps to steer shipper behaviour during disruptions.

5. Skill up the workforce and automate the boring bits. Fast-track HGV and rail-operations training visas, co-fund automation and vision-based QA in warehouses, and create micro-credentials for dispatchers, intermodal planners and customs clerks to lift productivity and service quality across the chain.

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10) Tourism & hospitality (NACE I: accommodation & food service)

Status quo (2025)

Tourism has fully rebounded and broadened beyond Prague: 22.8 million guests stayed in Czech accommodation in 2024, spending 57.3 million nights, with a strong finish in Q4 2024 (≈5 million guests; +7% y/y) and continued route expansion at Prague Airport (16.35 million pax, 181 destinations in 2024) that is now being reinforced by 2025 long-haul additions and a multi-year access upgrade. Domestic tourism remains a slim majority by arrivals, but foreign nights are rising faster and pushing higher-value segments back to pre-pandemic norms. czechtourism.cz+2Statistika+2

Size & share of GDP (what we can evidence)

• Scale indicators (2024): 22.8 million guests; 57.3 million overnights nationwide (all collective accommodation), a record since 2012 according to CzechTourism citing CZSO. czechtourism.cz

• GDP/GVA framing: Accommodation & food service (NACE I) is a low-single-digit GVA contributor in Czechia (order of ~2%), but with outsized employment and spillovers into retail, culture, transport and real estate; for exact annual shares, use Eurostat’s nama_10_a10 series. In Q4 2024, the broad trade+transport+accommodation group added +0.5 pp to y/y GVA growth, highlighting services’ role in the recovery. European Commission+1

Four strengths (longer sentences)

1. A globally recognised city brand (Prague) anchored in architecture, culture and affordability creates a robust base of year-round international demand, which cascades to secondary cities and heritage towns through day-trips and short regional circuits.

2. A diversified offer that combines UNESCO sites, spa-wellness traditions, mountain/outdoor product and festivals allows operators to target distinct segments across seasons, lifting load factors and average spend even when any single niche softens.

3. Air connectivity is improving in both breadth and frequency with new long-haul services and stronger European links, which raises the addressable market for higher-spend long-haul visitors while also smoothing weekend peaks from short-haul travel. Letiště Václava Havla Praha, Ruzyně

4. The accommodation base has matured post-pandemic with better inventory mix and digital distribution, so Prague and key regions can price more confidently and monetise via city cards, experiences and off-peak promotions.

Four weaknesses (longer sentences)

1. Demand remains heavily concentrated in Prague during peak months, leading to crowding, resident pushback and yield volatility elsewhere, which means the national portfolio underperforms its potential on a per-visitor-spend basis.

2. Labour shortages and turnover in hospitality depress service quality and constrain opening hours, especially outside the capital and in shoulder seasons, which drags on reviews and repeat visitation.

3. SME operators face fragmented digital tools and compliance steps (e.g., registrations, taxes, reporting) that eat into margins and leave data under-used for coordinated destination management.

4. Place-making and transport links are uneven across secondary destinations, so otherwise strong assets (spa towns, nature parks, industrial heritage) struggle to convert awareness into high-yield stays.

Five international examples — what to copy

1. Austria (integrated city/regional passes): Create Prague-plus and regional cards that bundle transit + top attractions + timed entries + dynamic offers, following Vienna City Card and Salzburg Card models to lift yield without raising headline prices. vienna.info+1

2. Slovenia (national sustainability scheme): Adopt a country-level “Czechia Green” certification akin to Slovenia Green, linking marketing visibility and incentives to verified environmental and social criteria for destinations and providers. slovenia-green.si+1

3. Croatia (eVisitor one-stop registration): Implement a single national visitor & accommodation registry with APIs for PMS/OTAs, reducing admin for hosts and giving authorities real-time demand data. Government of Croatia

4. Japan (seamless visitor mobility): Offer unified transport/payment cards and digital passes that work across rail, metro, bus and attractions to simplify travel and spread visitors beyond the core. Japan Guide

5. Portugal & peers (digital-nomad programmes with guardrails): Pilot remote-worker visas and residency offers in under-touristed regions, paired with housing safeguards and local-benefit conditions, to stabilise off-season demand without overheating city cores. Business Insider

Five priorities for Czechia (long form)

1. De-concentrate Prague demand with “two-centre” itineraries and guaranteed mobility. Package Prague + region (e.g., Karlovy Vary spa, Bohemian Switzerland, Olomouc, South Bohemia) with timed entries to headline attractions, bundled rail/bus passes, and city/regional cards; commit to marketing weight and operator incentives that reward nights outside Prague, and measure success in share of nights beyond the capital rather than just arrivals.

2. Go national on sustainability—make it visible, measurable and commercial. Launch “Czechia Green” with tiered destination and provider labels, link participation to co-op marketing, concessional finance for retrofits, and procurement preference, and publish an open dashboard of ESG metrics so travellers can filter and book greener options with confidence. slovenia-green.si

3. Build a single digital spine for tourism data and compliance. Create an eVisitor-style national registry with APIs for PMS/channel managers, one-time identity and tax capture, and privacy-preserving analytics for demand management; integrate with CZSO survey modules to reduce duplication and raise data quality for policy and marketing. Government of Croatia

4. Fix the mobility experience from runway to region. Keep Prague Airport rail on schedule and use the opening to launch through-ticketing to regional destinations, integrated baggage and check-in where feasible, and wayfinding in top languages; in parallel, co-fund last-mile shuttles and bike/scooter share in pilot towns to make car-free visits easy. Prague Daily News

5. Professionalise workforce pipelines and product quality. Stand up hospitality academies with micro-credentials for front-of-house, culinary, and experience design; offer seasonal work visas tied to accredited employers and wage top-ups for certified skills; create match-funds for SME tech (PMS, dynamic pricing, review response, upsell tools) in exchange for data-sharing to the national platform.

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11) ICT / software & digital services (NACE J: 58–63; plus relevant spillovers into M/N)

Status quo (2025)

Czechia’s ICT sector is a structural bright spot: turnover reached CZK 1.066 trillion in 2023 with ~202,000 people employed (of whom ~176,000 in ICT services) and momentum sustained by cloud, cybersecurity, and embedded software for industrial clients; the country boasts near-universal 5G coverage (≈99% in 2024) yet still lags the EU frontier on very-high-capacity fixed networks (VHCN fibre coverage ≈36.1%) and gigabit take-up, which creates a split between strong mobile availability and uneven fixed-line depth for data-heavy services. Regulators also continue to map 5G/LTE performance on motorways and rail corridors, with incremental improvements reported in 2024–2025. Czech Telecommunication Office+4Statistika+4Ministry of Industry and Trade+4

Size & share of GDP (reasonable, evidenced view)

• Scale: CZSO’s ICT sector account reports CZK 1.066 tn turnover (2023) and ~202k employees, with the services side (software, IT services, telecoms) the dominant share. Statistika

• GDP/GVA framing: Eurostat’s nama_10_a10 shows Information & communication (NACE J) as a low-to-mid single-digit share of national GVA in EU economies; Czechia is in that range, and quarterly CZSO notes repeatedly list “information and communication” among positive contributors to GVA growth through 2023–2025. (For precise annual shares, use the Eurostat series; point estimates vary by year and revision.) European Commission+2Statistika+2

Four strengths (longer sentences)

1. A large, export-oriented software and IT-services base is deeply intertwined with manufacturing clients, so Czech providers build embedded software, industrial data stacks and test automation that are “must-run” for OEMs, which gives resilience across cycles because these systems underpin production and compliance rather than discretionary pilots.

2. Human-capital depth in programming, systems integration and cybersecurity keeps labour productivity high even when headcount growth slows, with ICT pay premia reinforcing talent retention and creating strong internal training ladders that smaller EU peers struggle to match. Ministry of Labor and Social Affairs

3. Mobile-side connectivity is excellent—5G coverage effectively nationwide—so location-based and field-service applications scale well without custom infrastructure, which reduces deployment friction for industrial IoT, logistics, and public-safety apps. Ministry of Industry and Trade

4. R&D intensity in ICT has risen materially over the last decade, with business-sector ICT R&D spend up from ~CZK 9–15 bn in the late 2010s to ~CZK 20 bn+ by 2021, which enlarges the local bench for platform engineering and deep tech rather than just implementation services. AAVIT

Four weaknesses (longer sentences)

1. Fibre/VHCN rollout and gigabit take-up are still patchy relative to leaders, which constrains data-heavy B2B services (e.g., high-bit-rate media, AI training data pipes) outside major cities and forces firms to over-rely on mobile or leased lines, raising unit costs. Digital Strategy

2. SME digitalisation is uneven, with many smaller firms still on legacy ERPs and manual workflows, so the domestic market for advanced SaaS/AI remains shallower than the talent base would suggest, pushing many providers to export earlier than ideal.

3. Tight labour markets and visa frictions keep wage inflation elevated in core roles (cloud, security, data), which erodes price competitiveness for long projects and encourages offshoring by multinationals when headcount needs jump.

4. Fragmented data standards across public administration and regulated sectors complicate integration, so vendors spend disproportionate effort on “plumbing” and compliance rather than reusable product features, extending delivery timelines and capping margins.

Five international examples — what to copy

1. Estonia (e-Residency & digital identity): Package cross-border digital identity + company formation + e-signatures into a unified service that lets foreign founders operate from Czechia entirely online; adapt onboarding and KYC from Estonia’s playbooks. e-Residency+1

2. Singapore (Singpass & MyInfo): Build a single sign-on and consented data-sharing layer for citizens and firms so banking, tax, licensing and benefits can be automated end-to-end; copy the API and trust-framework model rather than just UX. Government Technology Agency (GovTech)+1

3. India (UPI as digital public infrastructure): Treat instant payments as a public rail and open it widely to fintech/merchant ecosystems, catalysing low-cost innovation while keeping settlement resilient and auditable. NPCI+1

4. Finland (Business Finland Tempo): Create fast, non-dilutive seed grants for product-validation with simple milestones, enabling earlier export tests for Czech SaaS and game tools companies. Business Finland

5. UK (Creative/Tech expenditure credits framework): Borrow the expenditure-credit model to crowd in private capital for domestic software products (e.g., safety-critical toolchains, cybersecurity), not just film/TV. GOV.UK

Five priorities for Czechia (longer, specific)

1. Close the fixed-network gap with a “Gigabit for Industry” programme. Pre-permit ducts and corridors, publish a geocoded VHCN needs map tied to industrial zones and university campuses, co-finance open-access fibre where private ROI is marginal, and require dark-fibre offers and standard APIs for wholesale access so edge compute and private 5G can be layered in rapidly. Digital Strategy

2. Stand up a national digital-identity and consent layer for business. Extend BankID-style verification into a full B2B trust framework with machine-readable mandates, e-seals, and data-sharing consents, so procurement, invoicing, customs, and benefits become push-button; make conformance a condition in public tenders to drive ecosystem uptake. Government Technology Agency (GovTech)

3. Create a “Public Code & Data” portfolio. Identify 20 high-impact public-sector systems (licensing, registries, environmental reporting) to refactor as open APIs + reference clients under modern licensing, publish SLAs and sandbox data, and fund SME integrators to build vertical solutions—turning the state into an anchor customer for Czech product companies.

4. Ease the human-capital constraint with targeted visas and re-/up-skilling. Launch fast-track tech visas tied to accredited employers and micro-credentials; fund conversion bootcamps in security, data engineering and SRE for mid-career workers, with wage co-funding during training to protect SME capacity.

5. De-risk enterprise AI adoption with common rails. Provide sovereign-hosting options, standardised model-risk and privacy controls, and a shared library of sector-specific evaluation datasets (health, justice, manufacturing), so CIOs can move beyond pilots; tie tax credits to measured productivity (e.g., OEE gains, cycle-time cuts) rather than spend.

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12) Creative industries (media, film/TV/animation, gaming, design, music, advertising, publishing)

Status quo (2025)

Czech creative industries are diversified and globally visible in specific niches: the games industry counts ~170 studios and ~2,765 employees, with turnover ~CZK 5.57 bn in 2023 and an expected return to ~CZK 6.5 bn in 2024 after the 2022 correction; audiovisual production entered 2025 with a major incentives reform—cash rebates raised to 25% (and to 35% for animation/digital-only) and the per-project cap tripled to CZK 450 m—which strengthens Prague’s role as a European production hub; broader CCI mapping is underway nationally to produce consistent, up-to-date statistics across regions and sub-sectors. screenvoice.cz+4gda.cz+4filmcommission.cz+4

Size & share of GDP (reasonable, evidenced view)

• Games benchmark: ~CZK 5.57 bn turnover in 2023; ~170 studios; ~2,765 employees; export share reportedly ~98%. gda.cz

• Audiovisual incentives (from 1 Jan 2025): 25% general rebate; 35% for animation/digital; CZK 450 m cap; applications on a rolling basis under the Czech Audiovisual Fund. fondkinematografie.cz

• GDP/GVA framing: Prior culture-satellite accounts indicated culture/creative-adjacent GVA ≈2–2.5% in earlier years; a comprehensive 2024–2025 mapping exercise is in progress to refresh national CCI totals and harmonise definitions. (Order-of-magnitude statement; final share depends on scope and will be updated by the Ministry of Culture projects.) Cultural Policies+1

Four strengths (longer sentences)

1. A globally recognised games cluster with both indie artistry and AA/AAA experience provides export-driven, IP-based revenues, and the talent base—design, engineering, art, audio—has repeatedly shipped successful titles, which anchors supplier ecosystems in tools, QA and localisation that spill over into other creative tech segments. gda.cz

2. Prague’s film/TV infrastructure—experienced crews, stages, heritage locations and now stronger incentives—offers predictable delivery for international productions, which stabilises employment across camera, VFX, post and set construction while raising the international profile of Czech creative services. fondkinematografie.cz

3. High artistic reputation in animation and design supports premium positioning, so studios can command better margins in advertising, motion design and boutique animation, particularly when paired with the 35% rebate for digital-only projects. fondkinematografie.cz

4. Dense university and private-school pipelines feed technical and creative roles, and cross-pollination with ICT (engines, real-time rendering, AI tools) accelerates productivity in both sectors, which is strategically important as content becomes more tool-driven.

Four weaknesses (longer sentences)

1. Financing for original IP is thin and episodic, so many studios and producers depend on work-for-hire or foreign service work that caps long-term upside and limits ownership of global franchises.

2. Skills bottlenecks in senior production, narrative design and live-ops monetisation remain acute, which slows scaling and forces costly international hires or remote partnerships. gda.cz

3. Fragmented measurement and policy coordination across sub-sectors obscures the true economic footprint, making it harder to design targeted instruments (e.g., export guarantees, growth loans) and to defend budget asks. screenvoice.cz

4. Infrastructure constraints—limited large sound stages, intermittent VFX capacity spikes, and uneven regional creative hubs—cause project queuing and opportunity loss during global demand peaks.

Five international examples — what to copy

1. United Kingdom (Video Games Expenditure Credit, VGEC): Adopt a clear, rules-based expenditure-credit for domestic game development tied to cultural tests and capped by qualifying spend, improving bankability; the 34% credit has become the UK’s anchor for new projects. GOV.UK+1

2. France (TRIP for international production): Use tiered rebates (30% / 40% for VFX-heavy) as a model for upsizing post/VFX capacity and attracting high-complexity shoots; pair with workforce ladders and stage investments. CNC

3. Canada–Ontario (stackable federal + provincial film/TV credits): Study federal-provincial stacking to smooth project finance and local spending, and mirror Ontario’s labour-based provincial credit to steer hiring. Canada.ca+1

4. Poland (GAMEINN R&D grants): Introduce a dedicated, multi-year game-tech R&D track to co-fund engine tools, AI localisation and networked gameplay infrastructure, improving Czech studios’ technology base. ITKeyMedia

5. Finland (Business Finland Tempo for creative tech): Provide fast, non-dilutive grants/loans for early export validation of creative-tech products (tools, middleware, engine plugins), with simple KPIs and rapid disbursement. Business Finland

Five priorities for Czechia (longer, implementation-ready)

1. Operationalise the new audiovisual incentives into a full “film city” plan. Publish rolling milestone dashboards for the incentive queue and cash-flow windows; co-finance additional stages and virtual-production volumes; and tie support to training and local spend so capacity grows alongside demand without overheating crews or supply chains. fondkinematografie.cz

2. Create a Games Growth Scheme built on three pillars. (i) Prototype grants for teams with playable vertical slices; (ii) recoupable, pari-passu growth loans for production with revenue-share; and (iii) export guarantees for marketing and distribution, with cultural-test criteria to keep funds focused on Czech IP. Model the legal/financial structure on the UK VGEC environment to ease co-financing with publishers. GOV.UK

3. Build a national Creative Tech Campus network (Prague–Brno–Ostrava). Equip hubs with motion-capture, volumetric capture, render farms, and QA labs, co-located with vocational academies offering micro-credentials in production management, live-ops, and monetisation; use open booking and transparent pricing so SMEs can access facilities without prohibitive capex.

4. Fix measurement and make it pay. Complete the national CCI mapping and institutionalise an annual satellite account; require any supported project to submit standardised data (jobs, spend, exports, IP ownership), then push results to an open dashboard so ministries and regions allocate support on evidence, not anecdotes. screenvoice.cz

5. Export Czech creative services with bundled offers. Launch “Czechia Creates” missions with bundled packages (studio + post + VFX + sound + locations + incentives concierge) and framework agreements with streamers and publishers; measure success in repeat clients, export revenue and retained IP, not just project counts.

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13) Healthcare & Medtech (health services = NACE Q; medtech manufacturing mainly C32.5)

Status quo (2025)

Czechia’s health system is universal, insurance-based, and comparatively efficient for the spend level; it emerged from the pandemic with doctors and nurses per 1,000 slightly above the EU/OECD averages, very high hospital-bed density (≈6.7 per 1,000), and heavy primary-care utilisation (≈7.8 doctor consultations per capita), but it still faces geographic maldistribution of staff and rising long-term cost pressures as the population ages. On the digital side, e-Prescription is essentially universal and regulatory capacity has matured (SÚKL, HTA), creating fertile rails for AI-enabled adherence, pharmacovigilance and outcomes-based contracting; medtech demand has normalised after the COVID spike, with steady exports and a domestic market that is small by EU big-5 standards but sophisticated and EU-compliant. OECD+2OECD+2

Size & share of GDP (hard numbers or best-evidence framing)

• Health spending: OECD puts Czech health expenditure at ≈9.1% of GDP (USD PPP $4,512 per capita), with 4.3 doctors/1,000 and 6.7 hospital beds/1,000 (2023 edition with latest country page). This places Czechia close to OECD averages on spend, above average on capacity. OECD

• System scale indicators: 160 acute hospitals with 49,218 beds (2023); 25,478 independent physician surgeries. These are recent CZSO structural anchors. Statistika

• Digital rails: e-Prescription handles >98% of prescriptions (paper is the exception), with >70 million e-scripts/year in 2021 and growth since; SÚKL’s 2024 annual report summarises the national footprint. PMC+1

• Medtech trade: U.S. Commercial Service estimates medical-equipment exports ≈ $1.1 bn and imports ≈ $1.35 bn (2023, HS 9018/9019/9021/9022)—indicative of an advanced but net-importing market positioned as an EU-compliant test bed and regional assembler. Trade.gov

Four strengths (longer, diagnostic sentences)

1. Czechia combines above-average clinical capacity (beds and physician density) with a universal insurance model and strong primary-care utilisation, which translates into reliable access and manageable waiting times in many specialties compared with EU peers at similar GDP per capita. OECD

2. The country possesses one of Europe’s most mature e-Prescription ecosystems, embedded in routine care and pharmacy workflows, making it uniquely straightforward to build audited, privacy-safe digital therapeutics, adherence programs and pharmaco-economics analytics on top of real-world drug data. PMC

3. Regulatory and payer institutions (SÚKL/HTA) have developed robust processes and data discipline, which lowers market-entry uncertainty for innovators and allows pilots in value-based pricing, risk-sharing, and device-as-a-service to be evaluated credibly. Euro Health Systems Observatory

4. Medtech demand is stable and sophisticated despite market size, thanks to export-oriented hospitals and clinical centres that operate to EU standards, enabling SMEs to validate advanced devices, software and services domestically before scaling to DACH and Nordics. Trade.gov

Four weaknesses (longer, candid sentences)

1. Workforce maldistribution and ageing create access deserts outside major cities, so adding spend or beds doesn’t automatically convert into delivered care without targeted workforce and telehealth models that rebalance capacity. OECD

2. The financing mix relies heavily on public insurance with limited private co-financing, which constrains capex cycles for cutting-edge equipment and slows adoption of higher-priced innovations unless they demonstrate clear budget impact or outcomes improvements. OECD

3. Hospital-centric legacy and high bed density can entrench inpatient care even when ambulatory or home-based models would be cheaper and more patient-friendly, raising long-run sustainability risks as chronic disease burdens grow. OECD

4. Domestic medtech manufacturing depth is uneven and fragmented across HS codes, leaving Czech providers dependent on imported imaging, implants and monitors and exposing them to FX and supply-chain volatility. Trade.gov

Five international examples — what to copy

1. Denmark (hospital-at-home & digital primary care): Copy scaled remote monitoring, nurse-led protocols and hospital-at-home bundles that shifted chronic care out of wards while maintaining outcomes; anchor in Czech e-Rx and insurer payments so documentation and reimbursement are “click-through.”

2. Israel (health-data R&D frameworks): Emulate privacy-preserving, consent-based health-data sandboxes co-run by insurers and MoH—clear governance, de-identification pipelines, and research contracts that return validated algorithms to the health system.

3. Netherlands (value-based procurement): Adopt outcomes-based tenders for devices and digital services (e.g., orthopaedics, diabetes) with transparent PROMs/PREMs, aligned coding and patient-reported data capture to make higher-value solutions financeable.

4. Ireland (life-sciences cluster scaling): Build GMP academies and validation/test hubs jointly financed by industry, to support medtech manufacturing upgrades and reduce time to qualification for exports into DACH/US.

5. Estonia (e-health rails): Integrate e-prescriptions, e-referrals and imaging reports into a single patient-consent framework with strong audit trails so telehealth providers can operate at scale with payer trust.

Five priorities for Czechia (long form)

1. Re-balance care by industrialising hospital-at-home and tele-specialty models. Use the existing e-Rx backbone and insurer contracts to deploy disease-specific remote-care bundles (cardio-metabolic, COPD, oncology follow-up) with certified devices, logistics, nurse protocols and escalation playbooks; reimburse per-episode with quality gates (readmissions, symptom scores) and pipe structured data back to registries—this frees beds, raises patient satisfaction and protects budgets as the population ages.

2. Create a national health-data trust with consent and audit baked in. Stand up a privacy-by-design platform where payers, SÚKL and providers deposit de-identified datasets (claims, e-Rx, labs) accessible to accredited researchers and Czech companies under model contracts; fund federated-learning pilots so innovation can happen without centralising raw data, and require that validated models return to the system under open evaluation reports. Euro Health Systems Observatory

3. Professionalise outcomes-based procurement. Publish template tenders in 5 categories (orthopaedics, diabetes, heart failure, oncology follow-up, wound care) with PROMs/PREMs and total-cost metrics; train hospital buyers and suppliers in evidence generation and contracting mechanics; allocate a pooled outcomes fund to de-risk first-of-kind contracts and crowd in vendors.

4. Scale the medtech manufacturing base through focused niches. Pick three Czech-achievable niches (e.g., surgical instruments & endoscopy sub-assemblies, in-vitro diagnostics disposables, digital patient-monitoring kits), co-finance ISO 13485 upgrades, clean-room capacity and regulatory filings, and pair with export credit for first DACH buyers; success is measured in qualified audits and repeat orders, not just grant uptake. MedTech Europe

5. Fix the workforce geography problem with new roles and visas. Introduce tele-present specialists and advanced practice nurses with expanded scopes, targeted visa lanes for shortage roles, and portable micro-credentials; add pay uplifts tied to underserved-area service, and monitor through quarterly access maps (waits and travel time) so policy can be tuned in real time. OECD

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14) Education & Research (higher education = NACE P; R&D across sectors)

Status quo (2025)

Czechia’s education and research base is solid and improving in key places: PISA 2022 shows students scoring above the OECD average in mathematics, reading and science, with maths at 487, reading 489, and science 498 points; higher education enrolment has risen modestly and internationalisation is strong, with ~315,000 university students in 2024 and nearly 1 in 5 holding foreign citizenship. On the research side, R&D expenditure reached CZK 139.7 bn in 2023 (1.83% of GDP), with business funding providing >60%, and R&D personnel ~85.5k FTE—good scale for a mid-sized economy, yet short of EU innovation leaders. Statistika+3OECD Education GPS+3Statistika+3

Size & share of GDP (hard numbers or best-evidence framing)

• GERD (R&D spend): CZK 139.7 bn (2023) = 1.83% of GDP, majority business-funded. This is the authoritative CZSO series used by OECD/Eurostat. Statistika

• R&D personnel: ~85.5k FTE (2023); total headcount ~123k engaged in R&D. Statistika

• Tertiary system scale: ~315k students in 2024, ~18% foreign students; OECD PISA confirms above-average basic skills. Czechia also has an unusually high share of doctoral students (≈6.1% of tertiary) relative to EU norms. Statistika+2OECD Education GPS+2

Four strengths (longer, diagnostic sentences)

1. Student achievement in core skills is above the OECD average and relatively stable in reading and science, which provides a dependable baseline for STEM pipelines, even though maths eased versus 2018—this resilience matters for a manufacturing-heavy economy that needs reliable feeder cohorts. OECD Education GPS

2. The university system is meaningfully internationalised (≈18% foreign students) and large enough to support specialised programmes, making it easier to run English-language STEM and applied research tracks that attract faculty, industry projects, and grant funding. Statistika

3. Business bears the majority of national R&D spending and employs a large share of researchers, which accelerates technology diffusion and increases the chances that public research translates into products and processes with measurable productivity effects. Statistika

4. Doctoral intensity is comparatively high for an EU mid-sized country (≈6.1% of tertiary students), supporting the scale of research groups and industry PhD collaborations needed for deep-tech domains (power semiconductors, industrial AI, materials). European Commission

Four weaknesses (longer, candid sentences)

1. GERD at 1.83% of GDP still trails EU innovation leaders (2.5–3.5%), constraining world-class lab infrastructure and long-horizon investigator-led research, and leaving universities dependent on competitive funds that can fragment effort across small projects. Statistika

2. Academic career paths and tech-transfer incentives are inconsistent, so translational projects often stall between proof-of-concept and product; equity rules, IP sharing and conflict-of-interest policies are not yet uniform or entrepreneur-friendly across institutions.

3. Dropout and time-to-degree issues reduce throughput, especially in engineering and CS, which wastes early investments and weakens the graduate pipeline right when firms need mid-career up-skilling and entry-level talent simultaneously. Expats.cz

4. Fragmented data standards and weak interoperability between academia, funding agencies and industry hamper collaboration, causing transaction costs in contracting, reporting and data sharing that discourage SMEs from becoming repeat R&D partners.

Five international examples — what to copy

1. Finland (Business Finland, SHOKs/Ecosystems): Copy fast, milestone-driven grants/loans for product validation and export, with simple governance and clear continuation/termination rules; pair with themed ecosystems (e.g., power electronics, automation).

2. Germany (Fraunhofer model): Build applied research institutes with majority contract funding from industry, KPI’d on solved problems and licences, not papers; co-locate with industrial parks to shorten tech transfer.

3. Israel (Yeda/WisGate style TTOs): Professionalise tech-transfer offices with standard equity/licensing templates, founder-friendly policies and rapid deal cycles; train TT staff as a recognised profession.

4. United Kingdom (doctoral training centres & expenditure credits): Scale cohort-based doctoral training centres with embedded industry rotations; adopt expenditure-credit-style tax instruments for software/deep-tech R&D spending to crowd in private capital.

5. Netherlands (open science & data infrastructure): Mandate FAIR data and provide shared national repositories and compute credits so research outputs are reusable by firms and start-ups without bespoke integration.

Five priorities for Czechia (long form)

1. Lift GERD to ≥2.3% of GDP by 2028 with a “40/40/20” mix: +0.3–0.4 pp from public core and competitive funds, +0.2–0.3 pp from targeted tax credits/expenditure credits, and the remainder from crowd-in via mission-oriented programmes (power semiconductors, industrial automation, health data). Publish an annual GERD dashboard by source and mission to keep the promise measurable and bankable for universities and firms. Statistika

2. Create 6–8 Czech Applied Research Institutes (C-ARIs) on the Fraunhofer playbook. Each C-ARI should be >50% industry-funded by year 5, co-located with industrial clusters (e.g., Rožnov/Ostrava for power electronics; Mladá Boleslav for e-mobility; Brno for cyber/AI), running shared labs, pilot lines, and testbeds; governance should guarantee IP clarity, fast contracting, and KPI-based renewals.

3. Standardise tech-transfer and founder equity across universities. Publish a national TTO term-sheet (option pools for academic founders, royalty/equity norms, conflict-of-interest rules), pre-clear it with ministries and auditors, and make adherence a condition for selected grants; fund proof-of-concept vouchers that bridge lab results to investable spin-outs.

4. Fix talent throughput with micro-credentials and modular degrees at scale. Give stackable credentials (robotics, PLC, data engineering, materials characterisation) portable value for employers and banks; fund conversion programmes for mid-career reskilling with wage co-funding; expand doctoral training centres with industry residencies so PhDs exit with production-grade skills rather than purely academic CVs. European Commission

5. Turn public data and compute into rails for research & startups. Build a sovereign research cloud offering secure data enclaves, FAIR repositories and compute credits; require open APIs and machine-readable licences for publicly funded datasets; measure success by external reuse (citations, licences, start-up usage) rather than only publications.

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15) Public sector, defence & security (NACE O84 for public admin/defence; defence industry spans C25–30, C32)

Status quo (2025)

Czechia locked in defence spending at ≥2% of GDP by law (effective 2024) and actually met that threshold last year; the government has since signalled a gradual lift toward ~3% of GDP by 2030, reflecting the security environment and NATO alignment. Reuters+2Reuters+2
On the industrial side, the defence ecosystem has been scaling fast: arms exports surged to about USD 2.6 bn in 2023, major primes (e.g., CSG) report record order backlogs (€11–14 bn range in 2024–2025) and acquisitions, and Colt CZ Group lifted 2024 revenue to CZK 22.4 bn (+50.6% y/y) after consolidating Sellier & Bellot ammunition. Serial integration of CAESAR 8×8 howitzers in-country starts 2025, while ammunition initiatives for Ukraine have highlighted Czech brokering capacity and munitions scale-up. Reuters+5CzechTrade Offices+5Reuters+5
On the public-digital rails, adoption is broad: Bank iD now counts ~5 million users, and the Data Box (datová schránka) system exceeded 4.0 million active boxes and 1.48 billion cumulative messages as of September 2025, with ~152 million transactions in 2024 alone. Radio Prague International+2info.mojedatovaschranka.cz+2

Size & share of GDP (what we can evidence)

• Public administration & defence (NACE O84) is typically a mid-single-digit share of GVA in EU economies; Eurostat nama_10_a10 is the reference series for exact Czech shares by year. European Commission

• Defence budget anchor: ≥2% of GDP since 2024 (by law); the cabinet’s 2030 glidepath points to ~3% of GDP if maintained. Reuters+1

• Industrial scale markers: Arms exports ≈ USD 2.6 bn (2023); CSG backlog €11–14 bn (2024–25); Colt CZ revenue CZK 22.4 bn (2024). coltczgroup.com+3CzechTrade Offices+3Reuters+3

Four strengths (longer, diagnostic sentences)

1. A binding 2%-of-GDP floor, moving toward ~3%, gives long-horizon planning certainty to both the armed forces and industry, allowing multi-year procurement synchronized with domestic capacity ramp-ups instead of ad-hoc purchases that erode supplier confidence and price discipline. Reuters+1

2. A rapidly scaling defence-industrial base with strong ammunition, vehicles, and small-arms pillars (CSG, Colt CZ, STV Group) provides export revenues and credible surge capacity, which improves alliance value and creates technology spillovers into precision engineering, explosives chemistry, and logistics. Reuters+1

3. Mature e-government rails (Bank iD + Data Boxes) give Czechia unusually ‘transaction-ready’ public digital identity and legally robust messaging, lowering friction for secure-by-default defence procurement, permits, and classified-adjacent workflows compared with peers that still rely on paper. Radio Prague International+1

4. Geographic proximity and interoperability with DACH/CE allies shorten supply chains and testing cycles, letting Czech integrators iterate with NATO customers while benefiting from EU programmes and joint procurement. (EU/Eurostat structural context.) European Commission

Four weaknesses (longer, candid sentences)

1. The orderbook is concentrated in a few primes and product families (large-calibre munitions, vehicles), so a sudden mix shift or donor fatigue could expose SMEs that scaled around current conflict-driven demand without diversified civil/military pipelines. Reuters

2. Programme management and certification capacity are uneven across the supplier lattice, which slows qualification to NATO standards and can delay export deliveries when quality systems or documentation are stretched by rapid hiring waves.

3. Public-sector IT remains heterogeneous beyond identity and secure messaging, meaning defence-adjacent agencies still operate siloed registries and bespoke portals that raise integration costs and complicate security accreditation. Statistika

4. Energy and environmental externalities of rearmament are non-trivial, exposing the sector to future carbon and disclosure pressures unless low-carbon power and material choices are built into procurement and plant upgrades from the outset. The Guardian

Five international examples — what to copy

1. Estonia (digital state & cyber): Copy whole-of-government digital identity, consented data-sharing and zero-trust by default for defence-adjacent services, plus regular national cyber-exercises that include private critical-infrastructure operators.

2. United Kingdom (DASA): Emulate the Defence & Security Accelerator model—rapid, open calls with milestone-based grants that push prototypes into user trials within 6–12 months.

3. Finland (reserve & total defence): Institutionalise reservist refresh, distributed logistics and civil-military planning so surge capacity is a trained routine, not a contingency.

4. South Korea (localisation & export financing): Pair offset-driven localisation with export credit and supplier development so SMEs climb into avionics, sensors and precision parts, not only hulls and shells.

5. United States (DIU & Other Transaction Authorities): Borrow fast contracting lanes and OTAs to trial dual-use tech (AI/ISR, counter-UAS, energy) with Czech units, then scale successful pilots via multi-year frameworks.

(These are programmatic models rather than numeric claims; they are widely documented by the respective governments.)

Five priorities for Czechia (long form)

1. Turn the 2→3% glidepath into bankable, multi-year programmes. Publish ten-year capability roadmaps (munitions, GBAD, C2/ISR, mobility, cyber, space) with sovereign-PPA energy plans for plants and domestic content & export milestones, so primes and banks finance lines, tooling and workforce at scale; build penalty/bonus rails around schedule, MTBF and learning-curve targets. Reuters

2. Scale munitions and vehicles with supplier professionalisation. Stand up a Supplier Readiness Office to co-fund NATO-grade QA (AQAP), test equipment, cybersecurity accreditation (NIS2), and documentation, targeting Tiers-2/3 where schedule risk actually lives; tie grants to successful first-article inspections and export licences won.

3. Exploit digital rails: identity-first procurement and secure messaging by default. Require Bank iD login and Data Box delivery for the entire supplier lifecycle (pre-qual → contracting → change orders → acceptance), shrinking cycle time and audit effort; add machine-readable contract data to enable real-time programme dashboards. Radio Prague International+1

4. Derisk energy and carbon in defence manufacturing. Offer long-term green PPAs and capex support for electrified processes, heat recovery and solvent capture for defence plants, exchanging support for EPDs and life-cycle emission reporting that will increasingly be demanded by EU buyers. The Guardian

5. Create a Dual-Use Tech Bridge. Fund rapid OTAs for AI vision, EW/counter-UAS, secure edge compute and resilient comms; run 12-month prove-and-scale cycles with Czech Armed Forces units, then convert to framework orders; build export coalitions with DACH/Nordic buyers to stabilise post-conflict demand.

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16) Agriculture & food systems (primary agriculture = NACE A; links tightly to C10–C12)

Status quo (2025)

After the energy/price shocks, primary agriculture shrank slightly in 2024 as the value of agricultural output fell by 2.7% to CZK 172.1 bn (preliminary CZSO), with weather variability and input costs weighing on yields; mid-2025 brought renewed drought alerts from the Intersucho monitoring network. Milk intakes were broadly stable on the year, while 2024 cereal harvests were ~7–9% below recent averages per CZSO estimates. Statistika+2Radio Prague International+2

Size & share of GDP (what we can evidence)

• Agricultural output (current prices): CZK 172.1 bn in 2024 (−2.7%). Statistika

• Direct GVA share of agriculture, forestry & fishing: ~1.7% of GDP in 2023 (Eurostat/CEIC), typical for a highly industrialised EU economy. CEIC Data

• Selected scale markers: 2024 cereal production estimates at mid-year of ~6.8–6.8 Mt (−7–9% vs. 5-yr average); milk purchases in 2024 quarters hovered around prior-year levels. Statistika+2Statistika+2

Four strengths (longer, diagnostic sentences)

1. A well-organised, EU-compliant farm base with solid dairy, cereals and rapeseed pillars provides reliable inputs to domestic processors and export channels, and the shared language of CAP rules, quality schemes and traceability reduces transaction costs with EU buyers compared with non-EU suppliers. Statistika

2. Tight integration with Czech food & beverage manufacturing and proximity to DACH retail chains shorten logistics and enable responsive contract farming, so growers can pivot acreage and specs faster when retailers shift assortments or when processors need reformulated inputs.

3. A mature drought-monitoring and agrometeorology capability (Intersucho) gives data-rich situational awareness, which, when paired with insurer and lender programmes, can turn weather risk from a shock into a managed variable. intersucho.sk

4. Farm structure and mechanisation levels support rapid adoption of precision-ag tools (variable-rate, remote sensing, AIS-linked machinery) where economics pencil out, building on decades of machinery sophistication in the broader Czech economy.

Four weaknesses (longer, candid sentences)

1. Climate volatility and localised droughts continue to erode yield stability and raise insurance costs, with mid-2025 maps again showing large areas under severe dryness—meaning investments in water, soil and genetics are not optional but foundational to margin resilience. Radio Prague International

2. Primary agriculture’s small direct GDP share (≈1.7%) masks its systemic exposure to price swings and policy changes, so even modest shocks propagate to processors and rural employment given thin operating margins. CEIC Data

3. Fragmented downstream bargaining power vis-à-vis large retailers keeps farmgate price pass-through incomplete, hampering reinvestment cycles in irrigation, storage, and automation when interest rates or energy costs spike.

4. Patchy on-farm data standards and interoperability slow the scaling of agritech and carbon-farming programmes, forcing integrators to spend money on bespoke plumbing instead of measurable yield, water, and emissions outcomes.

Five international examples — what to copy

1. Netherlands (horticulture & water): Copy integrated water governance with basin-level planning and reuse, paired with high-tech greenhouse and storage know-how to stabilise yields and quality under weather stress.

2. Denmark (co-op model & sustainability): Emulate farmer-owned cooperatives that drive export branding and invest in shared labs, genetics and logistics, turning thin farm margins into IP-backed value across the chain.

3. Israel (irrigation tech & data): Borrow sensor-driven irrigation, fertigation and drought-resilient cultivars, and make extension services the channel that converts tech into yield gains for mid-sized Czech farms.

4. France (risk management): Adopt multi-peril, public–private crop insurance with parametric triggers tied to official drought indices (e.g., Intersucho) and incentivise on-farm water retention as a covered mitigation.

5. Ireland (Origin Green for farms/processing): Build a single audited sustainability label that retailers trust and that underwrites green-premium export contracts for Czech dairy, cereals and hops.

Five priorities for Czechia (long form)

1. Water, water, water—treat it like grid capacity. Stand up regional water-security plans (storage, small reservoirs, reuse, modernised canals, micro-irrigation) with standard designs and permitting templates, and co-fund on-farm retention (ponds, hedges, contouring); make subsidies contingent on verified evapotranspiration and yield-stability gains using Intersucho data. Radio Prague International

2. Precision-ag at scale, not boutique pilots. Offer a super-deduction or grant stack for variable-rate tech, GNSS/autosteer upgrades, soil-moisture sensing and satellite analytics, but only when farms commit to open data standards and share anonymised KPIs (yield variance, input intensity, water use) into a national benchmarking hub that lenders can use to price risk.

3. Risk-transfer that actually pays out. Launch parametric drought insurance indexed to Intersucho and local rainfall, with public co-reinsurance to bring premiums down; require risk-mitigation plans (cover crops, water retention, cultivar mixes) as part of eligibility, and integrate with CAP eco-schemes to prevent duplication. intersucho.sk

4. Post-harvest & storage modernisation. Co-finance drying, cold-chain, controlled-atmosphere storage and quality sensors for grains, potatoes, fruit and hops, linked to dynamic contracts with processors that reward improved specs (protein, moisture, defects) and reduce waste—a direct hedge against weather-induced variability.

5. Make sustainability data commercial. Create “Origin Czechia – Farm” with audited farm-level emissions/water/nature metrics and digital product passports (GS1/EPCIS) that flow into processor and retailer systems; reward verified performance with procurement preference and export-promotion support, turning compliance into shelf access and price premia.

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17) Finance & fintech (banking, insurance, capital markets, payments — NACE K)

Status quo (2025)

Czech finance is liquid, well-capitalised, and conservatively run by regional standards: the CNB’s latest Financial Stability Report (approved June 2025, data to 31 Dec 2024) keeps the system on a stable footing with strong capital buffers and stress-test headroom; non-performing loans remain low by EU standards and macroprudential tools (countercyclical buffer, borrower-based limits) are routine, which dampens credit exuberance and keeps banks resilient across the cycle. At the same time, the payments layer is modernising fast: the CNB’s 2025 working paper documents broad adoption of instant payments in CERTIS and bank apps, making 24/7 rails mainstream for consumers and SMEs. A growing fintech scene (200+ firms/projects by 2025) spans payments, SME finance, wealth tools and regtech—moving from “feature add-ons” to regulated businesses. CzechTrade Offices+4Czech National Bank+4Czech National Bank+4

Size & share of GDP (what we can evidence)

• GVA share: Eurostat’s nama_10_a10 puts Financial & insurance activities (NACE K) at a low-to-mid single-digit share of Czech GVA in recent years; the 2025 cut of the dataset confirms the order of magnitude (around ~4–5%). For precise annual points, rely on the Eurostat table. European Commission+1

• Scale markers: Quarterly GVA for NACE K reached a series high in Q4 2024 (≈ CZK 67 bn, SA)—consistent with strong profitability through the rate cycle. CEIC Data

Four strengths (longer sentences)

1. The banking system’s capital, liquidity and profitability metrics give it thick shock-absorbers, so credit continues flowing to households and SMEs even when rates and growth whipsaw—this is underpinned by predictable CNB stress-testing, conservative provisioning, and macroprudential discipline honed since 2008. Czech National Bank+1

2. Payment infrastructure is on a modern footing thanks to widespread instant-payment availability and central-bank stewardship of CERTIS, which shortens cash cycles for SMEs, reduces failed-payment risk for retailers, and gives fintechs a credible, 24/7 backbone to build on. Czech National Bank+1

3. A growing, regulation-aware fintech base provides competitive pressure and product variety without destabilising the core, because many players hold CNB licences or operate adjacent to regulated entities, bringing innovation with compliance rather than outside it. CzechTrade Offices

4. Household balance sheets and corporate treasuries are familiar with digital channels and secure e-ID (BankID) flows, lowering KYC/AML friction and enabling straight-through onboarding and consented data-sharing once APIs are standardised across banks and public registries. European Commission

Four weaknesses (longer sentences)

1. Capital-market depth is thin (shallow corporate bond and equity issuance versus banking intermediation), so growth finance for scaling firms defaults to bank loans or foreign equity—this dependence raises cyclicality and slows innovation investment when credit standards tighten. (Macro context from CNB stability reports.) Czech National Bank

2. Open-finance rails are fragmented and uneven across institutions, which forces fintechs and corporates into bespoke connections and limits real-time cash-visibility, payment initiation, and credit analytics at scale.

3. Insurance penetration and product innovation lag Western EU benchmarks in some lines, leaving households and SMEs under-insured for income, catastrophe, and cyber risks that are rising with climate and digital exposure.

4. Talent and vendor lock-in on legacy cores make bank change-programmes slow and costly, so new features (e.g., granular consent, real-time data services) roll out unevenly and keep integration costs high for third parties.

Five international examples — what to copy

1. United Kingdom (Open Banking / Open Finance): Copy the mandatory API standard + dispute/availability SLAs + conformance testing so TPPs can rely on uniform performance rather than bank-by-bank workarounds.

2. Brazil (Pix + Open Finance): Combine free/near-free instant payments with a unified consent dashboard and credit-data portability to explode competition in payments and unsecured credit, while keeping fraud controls centralised.

3. India (UPI + Account Aggregator): Treat payments and data-sharing as digital public infrastructure with common rails and strong governance, which catalyses low-cost innovation for SMEs and retail without sacrificing auditability.

4. Lithuania (EMI hub): Use fast, transparent licensing and supervisory sandboxes to attract e-money and payments firms, then tie licences to local hiring, capital and resilience tests that build a real ecosystem, not just brass plates.

5. Singapore (MAS sandboxes & FAST/PayNow): Pair real-time rails with clear model-risk and cloud-risk guidance, giving banks and fintechs confidence to deploy AI scoring, regtech and embedded finance at regulated speed.

Five priorities for Czechia (long, programmatic)

1. Make open finance real, uniform and auditable. Mandate a single Czech Open-Finance API standard (accounts, payments, cards, lending, investments) aligned with EU rules; stand up a conformance suite and uptime SLAs, require bank-hosted consent dashboards, and certify “super-connectors” so SMEs can plug in once and reuse everywhere; measure success by API latency/uptime and TPP adoption rather than press releases.

2. Turn instant payments into the default for commerce and the state. Require instant rails acceptance for public-sector receipts/refunds and incentivise merchants/utilities to price-prefer instant pay; encourage request-to-pay for invoices and integrate with e-invoicing (ISDOC) and Data Boxes so small businesses get cash-in in seconds with clean audit trails. Czech National Bank

3. Deepen markets beyond bank credit. Expand covered-bond and SME securitisation frameworks, introduce growth-share or profit-participation instruments with retail access through pension/insurance wrappers, and back a market-making scheme for high-grade corporate paper to improve liquidity; success equals lower spreads and more non-bank funding for mid-caps.

4. Insurance modernisation where risks are rising. Fast-track parametric and cyber products with sandbox guidance, co-fund risk-data utilities (weather, flood, cyber telemetry) and let employers bundle portable wage-insurance and health top-ups through payroll with clean consumer protections.

5. Supercharge regtech & risk controls as public rails. Publish model-risk, fraud-risk, and data-retention reference controls (open source where possible), provide privacy-preserving KYC/AML utilities keyed to BankID, and require machine-readable reporting so supervisors can monitor risk in near-real time with less manual effort.

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18) Retail & consumer services (wholesale/retail trade, e-commerce, personal services — mainly NACE G + parts of S)

Status quo (2025)

After two hard years for consumers, real wages turned positive again in 2024–2025 as inflation fell toward target, and retail volumes recovered: CZSO reports retail trade sales +2.5% y/y in July 2025 (real, excl. autos), with non-food leading and food still soft; the rebound tracks CNB commentary on rising real wages (+5.3% y/y in 2025 Q2). E-commerce regained growth in 2024—Heureka/APEK put online turnover at CZK 194 bn (+5% y/y)—and large platforms continue to shape logistics, payments, and consumer expectations. The macro pulse is supportive (Q1-2025 GDP +2.2% y/y), although tariff uncertainty clouds export-linked categories. Reuters+4Statistika+4Czech National Bank+4

Size & share of GDP (what we can evidence)

• GVA share: Eurostat’s nama_10_a10 places Wholesale & retail trade; repair of motor vehicles (NACE G) at a mid-single-digit share of Czech GVA (order of ~10% for wholesale+retail together, varying by year). Use the dataset for exact annual points. European Commission

• Scale markers: Retail trade +2.5% y/y (July 2025, real); Czech e-commerce turnover CZK 194 bn in 2024 (+5% y/y); online share estimates commonly ~10–16% of retail (method-dependent). ECDB+3Statistika+3heureka.group+3

Four strengths (longer sentences)

1. A dense, modern brick-and-mortar network complemented by strong local e-commerce champions (Alza, Heureka marketplace, Rohlik) gives Czech shoppers wide assortment, fast fulfilment and competitive pricing, which disciplines costs and raises the baseline digital literacy on both demand and supply sides. Trading Economics

2. Payments and identity are friction-light by regional standards, with instant payments maturing, BankID adoption high, and retailers comfortable with mixed tender types, reducing checkout friction and returns while enabling secure loyalty and financing flows. Czech National Bank

3. Retailers are battle-tested from the inflation shock and energy spike, so procurement, private-label development and dynamic pricing capabilities improved materially, leaving a more analytical industry that can handle volatility.

4. Tourism recovery and route growth at Prague Airport broaden footfall and demand for premium and travel-retail assortments, creating opportunities for experiential formats and higher-margin services. Reuters

Four weaknesses (longer, candid sentences)

1. Labour scarcity and wage drift keep store operating models tight, making it harder to extend hours and staff service-heavy formats without automation or margin compression.

2. Fragmented data plumbing across POS, e-shop, marketplace, and last-mile partners creates blind spots in inventory, returns and customer lifetime value, so too many decisions happen with stale or siloed data.

3. Supplier bargaining remains concentrated in a handful of grocery chains and top marketplaces, squeezing manufacturers and smaller retailers and increasing exposure to private-label cannibalisation.

4. Physical logistics in city cores (curb space, emissions zones, returns congestion) is getting tougher, raising last-mile costs and lowering NPS when delivery windows slip at peak.

Five international examples — what to copy

1. United Kingdom (retail media + omnichannel): Build retail-media networks on first-party data (loyalty + POS + app) and use click-&-collect density to raise online profitability.

2. Netherlands (grocery productivity): Emulate lean store ops and dark-store hybrids to support high pick-rates and reliable same-day service without untenable labour costs.

3. South Korea (last-mile & live-commerce): Combine dense micro-fulfilment with shoppertainment/live video to lift conversion and reduce returns.

4. Japan (convenience formats): Copy small-box, high-service stores with strong food-to-go, ticketing and bill-pay, which perform well in transit nodes and mixed-use districts.

5. Brazil (Pix ubiquity): Use zero-fee/low-fee instant pay and request-to-pay to cut card fees and fraud while enabling small merchants to settle instantly.

Five priorities for Czechia (long, implementation-ready)

1. Wire up the data spine so decisions happen in real time. Co-fund standard APIs and event streams between POS/ERP, e-shops, marketplaces and carriers; require EPCIS/GS1 digital product passports for top categories so inventory, returns and compliance data flow end-to-end; publish an open connector kit SMEs can adopt without bespoke IT.

2. Normalise instant payments and request-to-pay at checkout. Offer interchange-like incentives and tax-deductible fee relief for merchants that default to instant rails; integrate invoice QR / request-to-pay into utilities, rents and subscriptions so households shift recurring bills off cards—improving cash flow and reducing chargebacks. Czech National Bank

3. Lift store productivity with targeted automation. Co-fund computer-vision shrink control, smart self-checkout, planogram compliance and tasking apps for 2–3,000 stores; make grants contingent on hours reallocated to service and measured shrink/OOS reductions, not just kit purchases.

4. Fix city logistics with regulated curb space and consolidation. Pilot urban consolidation centres with time-windowed curb allocations, e-van/bike incentives and parcel lockers; publish slot heatmaps and dynamic pricing for curb usage so last-mile becomes schedulable instead of chaotic.

5. Export Czech retail tech and formats. Create a Retail Tech Export Sprint pairing mid-caps (POS, OMS, last-mile, pricing engines) with reference retailers; fund in-market pilots in DACH/CEE and build case libraries that convert into multi-country roll-outs—measuring GMV processed and error-rate cuts rather than vanity metrics.

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19) Aerospace & space (aircraft/aerostructures = mainly NACE C30.3; space = multi-NACE, ESA supply chain)

Status quo (2025)

Czech aerospace has shifted from a “quiet supplier” to a visible tiered ecosystem: aircraft manufacturing and aerostructures (e.g., Aero Vodochody fuselages/wingsets) are back in serial rhythm, and L-39 programme deliveries plus Airbus/Embraer work packages have lifted revenues and confidence; in parallel, the space value chain has scaled from a small club to a broad network of 150+ companies & institutions, helped by rising national contributions to ESA and consistent deal-flow from instruments, avionics, structures and data services showcased every Czech Space Week. Airforce Technology+2Aero+2

Size & share of GDP (what we can evidence)

• Scale markers (aircraft): Aero Vodochody 2024 turnover ≈ CZK 6.0 bn on the back of L-39 deliveries and aerostructures; a useful anchor for the aircraft sub-segment’s regained momentum. Airforce Technology

• Space ecosystem breadth: 150+ firms & academic orgs active; Czech Space Alliance lists ~19 member companies in advanced niches; ESA contribution rising to ~CZK 1.7 bn in 2025—all signaling durable pipeline rather than one-off grants. czechinvest.gov.cz+1

• GDP/GVA framing: Aircraft/space together are a small but strategic slice of manufacturing GVA (low single digits), with outsized spillovers into precision engineering, materials, electronics and software; for precise annual GVA shares, use Eurostat industry tables.

Four strengths (longer sentences)

1. A dual engine of legacy airframe capacity and modern aerostructures gives Czechia repeatable, certifiable production know-how, so programmes can scale from prototypes to rate production without relocating critical processes—a credibility signal that shortens sales cycles with primes and Tier-1s.

2. The supplier lattice spans metals, composites, machining, wiring harnesses, hydraulics and avionics integration, meaning a Czech anchor can source many sub-assemblies domestically, compressing lead times and enabling joint quality regimes that are hard to reproduce in dispersed supply chains.

3. The space side has deepened from occasional ESA projects to an identifiable cluster with SMEs in sensors, radiation-hard cameras, timing, ground segment and downstream data analytics, which increases resilience across budget cycles because revenue now comes from multiple segments, not a single instrument line. Czech Space Portal

4. Policy momentum (higher ESA tickets, national showcases such as Czech Space Week) consistently pulls new entrants and foreign partners into the pipeline, narrowing the gap with CEE peers and giving students and engineers a visible career path into space-adjacent R&D and production. czechinvest.gov.cz

Four weaknesses (longer, candid sentences)

1. Programme concentration risk is real because a handful of aircraft platforms and work packages drive most volumes, so delays, certification hiccups or export licensing issues can ripple quickly through sub-suppliers’ cash flows.

2. Depth in DO-178/DO-254 software, safety-critical electronics and system-of-systems integration is thinner than in long-established hubs, which caps the value captured per airframe and raises dependence on foreign primes for high-margin work.

3. Testing and certification infrastructure (iron-bird rigs, large environmental/EMI chambers, flight-test ranges) is still relatively limited, forcing expensive foreign slots that extend schedules and reduce learning-by-doing locally.

4. The talent funnel is tight for senior programme managers, DERs, flight-test engineers and space-grade manufacturing operators, so firms either overpay on the open market or stretch staff across too many roles, which increases quality and schedule risk.

Five international examples — what to copy

1. Portugal (Óbidos/Évora aerostructures): Cluster composites + metallics + MRO around one or two primes with shared training and test assets, turning small countries into sticky Tier-1 locations.

2. Austria (FACC & ESA portfolio): Pair serial aerostructures with upstream space electronics/sensors, using public R&D calls that insist on flight heritage and export-ready IP.

3. Finland (New Space downstream): Build downstream data businesses (SAR, GNSS augmentation, EO analytics) off modest upstream participation—Czechia can copy this to diversify beyond hardware.

4. Canada (NRC/Innovation superclusters): Co-fund pre-competitive testbeds (icing, structural, EMI/EMC) that SMEs book by the hour, cutting qualification costs for export contracts.

5. Japan (monozukuri + certification discipline): Institutionalise A3 problem-solving, SPC and configuration control to sustain rate increases without quality drift across multi-tier suppliers.

Five priorities for Czechia (long form)

1. Create an Aerospace Test & Certification Campus (EMI/EMC chambers, structural & fatigue rigs, avionics benches, thermal-vacuum for space) with bookable slots, accredited labs and a national DER pool, so SMEs stop losing months and margin to foreign facilities and primes get local qualification pathways.

2. Upgrade the value-capture mix from metal to systems. Launch a “Systems 100” programme to grow 100 Czech engineers into safety-critical software (DO-178C), airborne electronics (DO-254) and ARP4754A systems engineering, with paid rotations at primes and a salary-top-up for SMEs that host trainees into permanent roles.

3. Anchor a downstream space corridor. Co-fund EO analytics and PNT augmentation products with Czech end-users (agriculture, insurance, logistics), publish reference datasets and APIs, and measure success in ARR from software/services, not just hardware revenue.

4. De-risk capital expenditure for serial growth. Offer investment credits and export-credit lines tied to OTD, FPY and PPM improvements for firms expanding composite and metallic sub-assembly lines, so banks price loans on operational KPIs rather than only collateral.

5. Institutionalise a Czech Space/Avionics Challenge series. Run annual ESA-aligned calls with paid flight heritage (sub-orbital/LEO rideshare, UAV test flights), and require open technical reports so know-how compounds nationally instead of staying locked in single firms.

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20) Water, waste & circular economy services (water/sewer = NACE E36–E37; waste/material recovery = E38–E39)

Status quo (2025)

Czechia’s waste and circular transformation is mid-flight: recycling of municipal waste has been rising (EU-method) and policy has hardened via the new Waste Act (effective 2021) and a circular-economy framework to 2040, while municipal waste factsheets show steady gains since 2017 but a remaining gap to EU leaders; cities (notably Prague) now run circular strategies to 2030, and national targets are tightening as EU CBAM/packaging rules push producers toward data-rich, material-efficient systems. European Environment Agency+2European Environment Agency+2

Size & share of GDP (what we can evidence)

• Municipal waste trend: EEA notes CZ “prepare for reuse & recycling” up from ~32% (2017) to ~44% (2021) under new reporting rules—solid progress but short of top-quartile EU peers. European Environment Agency

• EU context: The EU-27 averaged 511 kg municipal waste per capita in 2023 and ≈48% recycled—useful benchmarks for Czech targets and investment cases. European Commission

• Policy anchors: Circular Czechia 2040 (national framework) and the 2021 Waste Act (EPR systems, targets) are the core rails; Prague has a published Circular Prague 2030 plan that municipalities can copy. European Environment Agency+2European Environment Agency+2

• GDP/GVA framing: Water & waste services together are a low-single-digit share of GVA, but strategically important for industry cost curves and ESG compliance; exact annual shares are in Eurostat national accounts.

Four strengths (longer sentences)

1. A comprehensive legal and EPR backbone (packaging, WEEE, tyres, batteries, PV) already exists and has been recently refreshed, which means investors in collection, sorting and re-processing can underwrite projects against clear producer-responsibility flows rather than discretionary municipal budgets. European Environment Agency

2. Measured gains in municipal recycling and separate collection demonstrate operational learning within utilities and city companies, so scaling new fractions (bio-waste, textiles) is more about capex and service design than inventing new institutions from scratch. European Environment Agency

3. Industrial demand for low-carbon, traceable materials is rising fast under CBAM and corporate Scope-3 targets, which creates bankable offtake for high-quality scrap, recycled plastics and paper, giving Czech re-processors a path to premium contracts instead of commodity pricing.

4. Municipalities (e.g., Prague) already run published circular strategies, providing templates for procurement, construction waste, reuse and food-waste pilots that smaller cities can adapt rather than design anew. klima.praha.eu

Four weaknesses (longer, candid sentences)

1. Landfilling remains materially higher than in EU leaders and bio-waste capture is uneven, so methane and lost nutrient/energy value persist despite legal targets—closing this gap requires collection redesign, local treatment capacity and citizen UX improvements, not only awareness campaigns. MDPI

2. Sorting and re-processing capacity for complex plastics and textiles is thin, which forces exports or down-cycling and weakens the economics of separate collection when commodity prices soften.

3. Data interoperability across EPR schemes, municipalities and producers is limited, so auditors, lenders and buyers cannot easily trace material passports from bin to bale to pellet to product, which depresses prices for recyclate and slows “recycled-content” procurement.

4. Water and wastewater infrastructure faces renewal needs and climate stress (droughts/floods), and project delivery can be slowed by permitting and tariff uncertainty, delaying advanced treatment, reuse and leakage reduction investments.

Five international examples — what to copy

1. Austria (high-capture bio-waste & residual sorting): Pair door-to-door organics with residual-waste fine-sorting and enforce contamination standards to raise overall recycling without relying only on citizen perfection.

2. Netherlands (digital product passports & plastics hubs): Build regional plastics-to-polymers hubs with mandated product passports so manufacturers can specify recycled content with quality guarantees.

3. Denmark (waste-to-energy with carbon cuts): Run WTE plants with best-available energy recovery, flue-gas cleaning and CCUS pilots, keeping landfilling very low while addressing emissions transparently.

4. Belgium/Flanders (Fost Plus system): Use a single national packaging compliance scheme with performance KPIs and standard data reporting, squeezing system costs while lifting capture.

5. Finland (water reuse & leakage control): Deploy smart metering, pressure management and reuse pilots at municipal scale to hedge drought risk and postpone capex by saving water.

Five priorities for Czechia (long form)

1. Make bio-waste capture universal and convenient. Standardise bin sizes, pick-up frequency and contamination enforcement for organics nationwide; co-fund decentralised composting/AD capacity and require digestate quality standards, then tie municipal support to verified capture-rate and methane-avoidance outcomes.

2. Build plastics/textiles re-processing where offtake is bankable. Co-finance washed-flake, rPET/rPP compounding and fibre-to-fibre pilots at two or three regional hubs; publish long-term offtake tenders (public procurement + retailers) so plants can debt-finance against contracted demand rather than spot markets.

3. Turn waste data into material passports. Mandate GS1/EPCIS-style digital product passports for priority categories (packaging, electronics, construction products), create a national materials ledger that EPR schemes must feed, and require machine-readable reporting so lenders and buyers trust recycled-content claims.

4. Cut landfill with engineered alternatives and pricing. Phase in escalating landfill taxes, ban landfilling of separately collected recyclables and untreated bio-waste, and approve modern WTE with CCUS pilots where life-cycle analysis proves net benefit versus long-haul export or uncontrolled methane. VTEI

5. Water resilience as core infrastructure. Fund district metering, pressure management and leak detection, support industrial and municipal reuse (cooling, irrigation, street cleaning), and publish basin-level water-stress maps to prioritise projects; tie tariff support to delivered loss-reduction and reuse KPIs rather than inputs.

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21) Professional & business services

(professional, scientific & technical activities = NACE M; administrative & support services incl. BPO/GBS = NACE N)

Status quo (2025)

Czech professional & business services form a broad “brains-and-ops” backbone—from law, accounting, engineering and marketing (NACE M) to shared services, BPO, call centres, facilities and temp staffing (NACE N). The global business services (GBS/BPO/IT services) sub-sector alone employs ~175,000 people (2024) with centres planning toward ~200,000 jobs by 2025, and is rapidly automating: ABSL’s 2025 report highlights 72% of centres using RPA and ~59% deploying gen-AI in production, with ~43% foreign employees underscoring the sector’s international talent mix. absl.cz+2absl.cz+2

Size & share of GDP

• Order of magnitude: Eurostat national accounts (nama_10_a10) put NACE M + N together at a mid-to-high single-digit share of GVA in Czechia (yearly point values fluctuate; see dataset). European Commission

• Scale markers: The GBS/BPO community is ~380–400 centres and expanding, with 2024 headcount ~175k and the sector tracking toward ~200k jobs (ABSL). absl.cz+1

Four strengths (longer sentences)

1. A large, export-oriented pool of multilingual professionals—now with deep benches in finance, analytics, cybersecurity and software—lets Czech providers sell complex, 24/7 services into DACH, Nordics and the UK, making the sector resilient because revenue is diversified across geographies and functions rather than tied to any single domestic cycle. absl.cz

2. Operational maturity in process excellence (Lean/Six Sigma, ITIL, ISO) and regulatory compliance means Czech centres run business-critical workflows rather than low-value overflow, so switching costs for clients are high and renewals come with scope expansion.

3. Technology adoption is fast by EU standards—RPA at scale and early gen-AI use in knowledge work—so productivity gains compound into better SLAs and margin headroom even as wages drift up with talent scarcity. absl.cz

4. Tight links to local universities and strong city ecosystems (Prague, Brno, Ostrava, Plzeň) provide stable graduate pipelines, enabling centres to move up the value chain from transactional processing to design, engineering and product-adjacent roles. Expats.cz

Four weaknesses (longer, candid sentences)

1. Fibre/VHCN and fixed gigabit coverage lags EU leaders, which can constrain data-heavy services and increase reliance on leased lines or private links—raising unit connectivity costs for advanced workloads outside the core metros. European Commission

2. Visa and housing frictions slow international talent inflows just as centres chase 30-language coverage, so teams either pay premiums, extend delivery times, or offshore parts of the stack to keep SLAs. absl.cz

3. The domestic client base (SMEs) still under-outsources and under-digitalises, capping local demand for higher-margin consulting, design and managed services and leaving growth overly reliant on foreign mandates.

4. Legacy cores inside some large banks/insurers and public entities make integrations brittle and costly, so providers spend too much on “plumbing” versus reusable productised services, slowing margin expansion.

Five international examples — what to copy

1. UK (Open Banking / open-finance market rules): Make mandatory, uniform APIs with uptime SLAs a national norm in finance and then other verticals, so Czech service firms build repeatable products on top.

2. Portugal (Tech Visa & startup residence): Create transparent, fast tech visas and spousal work rights to widen the language/skills mix that GBS needs.

3. Ireland (IDA model): Tie investment support to training & progression ladders, so foreign centres commit to moving from Tier-1 support to design/engineering over a 3–5-year horizon.

4. Finland (Business Finland “Tempo” grants): Offer rapid validation grants for Czech professional-services firms turning internal tools into exportable SaaS.

5. Estonia (e-government rails): Use digital identity & data-sharing to shrink KYC/AML and onboarding friction, letting Czech providers deliver compliant services faster across borders.

Five priorities for Czechia (long form)

1. Scale talent fast with visas + micro-credentials. Stand up Tech & Services Fast-Track visas (decision in 15 working days), portable micro-credentials in financial crime, SAP S/4, cloud ops and data engineering, and fund conversion bootcamps for mid-career switchers—publish quarterly dashboards on time-to-hire and credential completions to prove throughput.

2. Make open data + APIs the default across regulated verticals. Extend BankID into a B2B consent and e-seal framework; mandate standard APIs for registries, taxes, customs, and procurement; certify super-connectors that SMEs can plug into once. The outcome is a home market that rewards Czech firms that productise services. European Commission

3. Give centres a productivity runway. Offer super-deductions for AI/RPA only when matched to measured cycle-time and error-rate improvements and when playbooks are shared (anonymised) via an ABSL library, so learning compounds nationally rather than within single firms. absl.cz

4. Lift fixed connectivity where it matters. Publish a VHCN needs heatmap for GBS clusters and industrial parks, co-finance open-access fibre with dark-fibre obligations, and measure gigabit passings and take-up quarterly. European Commission

5. De-risk city ecosystems (office + housing). Coordinate grade-A office pipeline with housing permits and transport access in Prague/Brno, including mid-market rentals and student beds, to keep labour markets liquid and salary inflation contained; track time-to-permit and rent levels as lead indicators.

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22) Housing & urban services

(housing outcomes, rental/homeownership markets, permitting & local public services that shape liveability; links to construction but focused on residents and operators)

Status quo (2025)

Housing affordability remains the binding constraint on liveability and labour mobility: Deloitte’s 2025 Property Index ranks Prague the 3rd-least affordable major EU city for ownership, at ~15 gross annual salaries for a 70 m² flat, while asking rents in Prague have climbed to ~CZK 438/m² in early 2025 (vs. ~CZK 395/m² end-2023). After a price cool-off in 2023, CZSO’s real-estate statistics still show very high absolute levels (2023 average flat sale ~CZK 58,641/m²; Prague ~CZK 103,693/m²); completions fell in 2024, and 2025 YTD shows fewer completed dwellings even as permits/value of permitted works rebounded, highlighting pipeline frictions. Global Property Guide+4Expats.cz+4CIJ Europe+4

Size & share of GDP

• Housing effort & pressure indicators: Eurostat’s housing cost overburden series is the standard lens (share spending >40% of disposable income on housing), with city-rural splits published in the 2024 “Housing in Europe” compendium; Czech rates are lower than EU worst-cases but rising in cities. European Commission+1

• Activity pipeline: CZSO monthly/quarterly notes show volatile but improving permit values in 2024–25, alongside weak completions—a mix consistent with slow approvals and financing headwinds after the rate shock. Statistika

Four strengths (longer sentences)

1. A deep, reliable statistical base (CZSO) and private indices (Deloitte Rent/Property) give policymakers and investors high-frequency telemetry on prices, rents, permits and completions, which shortens feedback loops when adjusting policy levers or calibrating municipal investments. Deloitte+1

2. Urban utilities and services (water, waste, transit) are generally high-quality and EU-compliant, so adding housing in serviced corridors can ride on existing capacity if permitting and grid connections are coordinated.

3. A strong rental demand base (students, young professionals, expats) supports professionalised rental platforms and PRS pilots, which can broaden tenure options beyond ownership in high-pressure markets. CIJ Europe

4. Mortgage markets remain functional and rates have eased from 2023 peaks, improving transaction feasibility for some households and enabling developers to restart shelved projects when pre-sales return. CIJ Europe

Four weaknesses (longer, candid sentences)

1. Permitting timelines and appeals remain the system’s choke point, so even when demand, land and finance align, projects sit in queues—raising holding costs and ultimately end-prices or rents. Deloitte

2. Housing production is pro-cyclical and concentrated in a few metros, making supply slow and uneven relative to job growth; completions fell in 2024 and early 2025 despite rising permit values, confirming pipeline frictions. Statistika+1

3. Affordability in Prague is among the worst in Europe by salary-to-price ratios, pushing key workers to longer commutes or out of the city and eroding productivity via labour-market mismatch. Expats.cz

4. Fragmented digital plumbing across registries (planning, cadastre, utilities) and municipalities keeps approvals paper-heavy, raising transaction costs for both small and institutional developers.

Five international examples — what to copy

1. Vienna (social/limited-profit housing at scale): Long-horizon land policy + limited-profit developers + predictable subsidies keep a permanent affordable stock.

2. Helsinki (zoned land + quota model): A/B/C quotas (market/rental/subsidised) on city land ensure mixed tenure and predictable pipeline across cycles.

3. Netherlands (digital permitting + pattern books): Standardised typologies and open-BIM submissions cut months off approvals; municipalities reuse approved “pattern books” for small/mid projects.

4. France (Pinel-style PRS incentives & REITs): Tax-efficient PRS vehicles crowd in patient capital for rentals with quality standards and tenant protections.

5. Japan (TOD + small-unit prefab): Transit-oriented rezoning and industrialised small-unit construction deliver compact, affordable supply fast where rail access is excellent.

Five priorities for Czechia (long form)

1. Turn permitting into a digital, time-boxed pipeline. Launch a national planning portal that pre-fills cadastral/utility data, enforces statutory SLAs, and accepts open-BIM/IFC submissions; publish queue dashboards by municipality and require reason-coded rejections to create accountability and learning across planning teams.

2. Scale tenure diversity with a professional PRS/affordable stack. Create tax-efficient PRS vehicles (REIT-like) with minimum quality and tenant-protections, co-fund municipal land-lease projects with rent covenants, and pilot key-worker housing near hospitals/schools; success equals occupied, regulated rental units added per year, not just approvals.

3. Industrialise mid-rise housing. Pre-permit pattern-book designs (mid-rise, timber/steel modular) and stand up prefab corridors with rail access; tie support to verified build-time and cost reductions and to operational energy intensity below code, so affordability and sustainability move together.

4. Make affordability visible and investable. Publish monthly affordability dashboards (price-to-income, rent-to-income, commute time) and attach automatic policy triggers (e.g., extra density on public land when ratios breach thresholds); allow impact-linked financing where lenders get a small rate step-down if projects hit rent caps and delivery dates. Deloitte+1

5. Unlock “last-mile” municipal capacity. Fund city delivery teams that coordinate utilities, grid connections, curb management and inspections; pay for results (units occupied, average approval time) and require open data feeds so developers, utilities and the public can plan around real timelines.

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23) Environmental tech & clean industry

(cleantech hardware/software, recycling & circular systems, low-carbon industrial processes, water & wastewater solutions)

Status quo (2025)

Czechia’s cleantech landscape is maturing from project-by-project upgrades into a policy-anchored transition: the state has fixed a coal phase-out by 2033 and is pushing nuclear + renewables + grid as the backbone; CEZ’s 2024/25 disclosures emphasise decarbonisation, RES build-out, and electrification services for industry, while the Ministry of Environment’s 2023/24 report shows steady progress (with gaps) across air, water, waste and biodiversity indicators. In parallel, “Circular Czechia 2040” frames economy-wide shifts in materials, product design and waste systems, giving local vendors (energy efficiency, power electronics, recycling, water) clearer demand signals from policy and corporate Scope-3 pressure. OECD+3European Commission+3Skupina ČEZ - Produktová sekce+3

Size & share of GDP (evidence-based framing)

• There isn’t a single “cleantech GDP” line in national accounts; use system markers: Czechia cut net GHG emissions ~25.6% (2005→2023); renewables’ share of electricity in 2024 was ~15.9% (EU method); nuclear ~40% of generation in 2024; and distribution operators connected ~763 MW of new small-scale generation in 2024, mostly PV — all signals of a scaling market for clean hardware/software and services. ČEZ Distribuce+3European Parliament+3European Commission+3

• Market context: the U.S. ITA clean-tech brief highlights regulation-driven opportunities in renewables, grids, waste and water; CzechInvest’s EcoTech portfolio targets foreign/direct investment into these niches. Trade.gov+1

Four strengths (longer sentences)

1. Clear long-term decarbonisation anchors (coal exit 2033; nuclear and RES expansion) reduce policy ambiguity for investors and industrial offtakers, so Czech vendors can plan multi-year capacity in PV, storage, efficiency and waste-heat recovery with greater confidence than during the 2022–23 energy shock. European Commission+1

2. A dense base of export-oriented manufacturers in autos, machinery and chemicals creates immediate domestic demand for clean-process retrofits (electrified heat, solvent capture, advanced controls), which lets Czech cleantech firms prove solutions at home before scaling into DACH and Nordics. Ministry of the Environment

3. Circular-economy policy has a concrete horizon (“Circular Czechia 2040”) and upgraded waste law/EPR schemes, so materials tech (sorting, re-processing, digital passports) can underwrite plants against regulated flows rather than municipal discretion. OECD

4. Power-electronics and semiconductor momentum (e.g., SiC) meshes with electrification needs, enabling local supply of drives, inverters and smart-grid components that raise industrial energy productivity while opening export channels. (Sector interplay from prior evidence.) Skupina ČEZ - Produktová sekce

Four weaknesses (longer sentences)

1. Renewables’ electricity share remains among the lowest in the EU (≈15.9% in 2024), so grid flexibility, siting and permitting must accelerate in sync or Czechia risks importing clean equipment while lagging in domestic deployment. European Commission

2. Project delivery is often gated by grid connections and permitting rather than technology availability, which stretches timelines for PV/storage, heat-pump electrification, and industrial energy-efficiency retrofits even when the business case is clear. Skupina ČEZ - Produktová sekce

3. Re-processing depth for difficult fractions (complex plastics, textiles) is still thin, leaving value on the table and exposing municipalities and producers to volatile export markets when commodity prices soften. (Policy context in circular-economy sources.) OECD

4. SME capital and engineering capacity are uneven, so many potential adopters defer upgrades without templated financing and turnkey delivery models that compress risk for small balance sheets. Trade.gov

Five international examples — what to copy

1. Denmark (district heat & large heat pumps): Publish reference designs and standard tenders for coal-to-heat-pump conversions with thermal storage, then rinse-and-repeat in municipal systems.

2. Netherlands (digital product passports & plastics hubs): Mandate GS1/EPCIS-based passports for packaging/electronics and co-finance regional plastics-to-polymers hubs with long-term offtake from retailers/CPGs.

3. Austria (high-capture organics + residual fine-sorting): Scale organics collection and residual fine-sorting to push recycling without relying on perfect citizen sorting.

4. Finland (energy-efficiency contracting): Use performance-guaranteed EPCs with public credit support so SMEs can electrify heat and recover waste energy without upfront capex shock.

5. United Kingdom (CfD for storage pilots): Extend contract-for-difference logic to long-duration storage pilots, de-risking merchant exposure while building system flexibility.

Five priorities for Czechia (long form)

1. Make grid capacity and permitting “productised.” Publish quarterly connection heatmaps, pre-permit substation packages in industrial zones, and offer standard connection contracts with firm dates; pair with fast-track RES/storage permitting templates so private capex can move on a schedule rather than in a queue. Skupina ČEZ - Produktová sekce

2. Turn circular policy into bankable plants. Run two or three plastics/textiles re-processing hubs with 10-year public/retail offtake tenders; require digital passports and independent mass-balance audits, lifting recycled-content prices above commodity levels. OECD

3. Industrialise efficiency/electrification for SMEs. Create “Clean Process Kits” (heat pumps, VSD drives, power-quality, solvent capture) with outcome-based subsidies tied to verified kWh/t and tCO₂e cuts; bundle with on-bill finance so upgrades cash-flow from day one.

4. De-risk long-dated clean power for industry. Offer nuclear/RES-indexed PPA templates with sovereign credit wraps that taper as projects de-risk, letting metals/chemicals sign decade-long contracts and trigger electrification capex now. Skupina ČEZ - Produktová sekce

5. Export the stack. Build a Cleantech Export Sprint (target markets DACH/Nordics/Benelux) pairing Czech integrators with finance (export credit) and proof points (case libraries); measure success in foreign MW/MWh upgraded, tCO₂e reduced, and recycled-content tonnes sold rather than grant counts.

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24) Sports, culture & events

(sport participation & performance; festivals, film/TV events, live entertainment; destination events that drive nights & spend)

Status quo (2025)

The events engine is running hot again. Czechia hosted and won the 2024 IIHF Ice Hockey World Championship in Prague/Ostrava—the most attended worlds ever (≈798k spectators)—and 2025 summer festivals (e.g., Colours of Ostrava) and autumn Signal Festival programming underline the breadth from arena sport to open-city culture. On screen, 2025 incentives rose to 25% (35% for pure animation/digital) with a CZK 450 m cap, and KVIFF 2025 drew global press and premieres—altogether signalling that sport + culture are back as demand magnets and soft-power assets with real economic spillovers. AP News+4Wikipedia+4IIHF International Ice Hockey Federation+4

Size & share of GDP (what we can evidence)

• Public sport outlays: CZK 8.7 bn of state-budget support for sport in 2023 (CZSO), roughly two-thirds to general sport, one-third to elite representation—a scale marker for policy inputs. Statistika

• Cultural mapping: A national CCI mapping (2024–2025) is underway to pin down updated sector totals; meanwhile, audiovisual incentives and festival attendance provide high-frequency signals of activity. ScreenVoice

• Events pulse: KVIFF 2025 ran 4–12 July; Signal Festival 2025 is set for 16–19 Oct; large music festivals (e.g., Colours) anchor July; airport and tourism rebounds bolster international attendance. kviff.com+2Signal Festival+2

Four strengths (longer sentences)

1. A globally resonant hockey brand plus recurrent top-tier events (worlds, marathons, indoor tours) generate reliable spikes in visitor nights, broadcast reach and sponsorship, and 2024’s home-ice gold re-set the narrative around Czech sport as elite and event-capable. IIHF International Ice Hockey Federation+1

2. A dense, diverse festival calendar—from KVIFF and Colours to Signal—keeps the country on travel and culture radars year-round, distributing demand beyond a single season and enabling regions like Moravian-Silesian to monetise industrial heritage venues as premium stages. Wikipedia+1

3. Audiovisual policy has become structurally more attractive in 2025 (25–35% rebates, higher per-project cap), which raises the ceiling for international shoots and post/VFX, and feeds a pipeline of crews, suppliers and hospitality spend. Czech Film Center

4. Data and institutions (CZSO sport stats, festival organisations, film fund) are mature enough to plan with evidence, so bids, funding and policing can be tied to credible baselines for attendance, safety and local economic impact. Statistika

Four weaknesses (longer sentences)

1. Venue and urban-logistics constraints (surface access, curb space, crowd circulation) cap the monetisation of peak events, especially around Prague’s historical core and older arenas that weren’t designed for present-day hospitality and broadcast demands.

2. Funding is fragmented across state/region/city/sponsor streams, so rights-holders and promoters burn time on applications rather than product, and co-marketing often lacks consistent KPIs and shared data.

3. Seasonality and staff turnover in events/hospitality reduce service quality outside peaks, hurting reviews and repeat visitation for secondary cities that need shoulder-season traffic most.

4. Measurement of spillovers (nights, ancillary spend, media value) is inconsistent, weakening the case for long-term event franchises and for infrastructure like rail links and district upgrades.

Five international examples — what to copy

1. Austria (Vienna/Salzburg cards): Bundle city cards + timed entries + transit around major events to lift yield without raising ticket prices, integrating rail and festival schedules.

2. UK (EventImpact playbooks): Use standard economic-impact templates and open data so promoters and cities align on KPIs (nights, ADR, F&B, retail footfall) and co-funding.

3. Spain (Bilbao effect for cultural districts): Tie venue upgrades to district placemaking (lighting, wayfinding, food halls), turning crowd flows into neighbourhood renewal.

4. Japan (seamless visitor mobility): Offer through-ticketing and stored-value wallets usable on rail/bus and at venues to smooth peak flows and increase ancillary sales.

5. Canada (film/TV incentives + workforce ladders): Link rebates to craft training hours and diversity targets, growing crew depth while keeping incentives politically durable.

Five priorities for Czechia (long form)

1. Lock in an “Events Spine” calendar with premium rail/air slots. Publish a rolling 3-year bid/host calendar for sport & culture; coordinate airport slots and rail capacity for peaks; bundle Prague + region itineraries during KVIFF/Colours/Signal so nights spread beyond the capital.

2. Standardise measurement and funding. Mandate open impact dashboards (nights, spend, crowd flows, safety) for supported events; channel public support via framework agreements with clear KPIs instead of one-off grants; share the data with DMO partners and hotels to align pricing and staffing.

3. Upgrade access and venue economics. Prioritise Prague Airport rail link milestones and last-mile crowd management (dynamic curb allocations, signage, micro-mobility parking); co-fund venue retrofits (broadcast docks, back-of-house kitchens, digital POS/ID) that raise per-visitor spend without pushing ticket prices out of reach. Signal Festival

4. Professionalise the events workforce. Stand up Event Ops Academies with micro-credentials in safety, production, hospitality revenue management and digital ticketing; tie public support to certified staffing levels on peak days; create seasonal visa lanes for shortage roles.

5. Exploit the 2025 film/TV incentives. Market turn-key “shoot + post + VFX” packages with a concierge for permits and locations; publish monthly incentive-queue transparency (budget left, processing times) to keep producers confident; measure success in repeat productions, local spend, and new IP retained. Czech Film Center

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25) Public administration & the digital state (operations)

(mainly NACE O84; e-ID, data exchange, service delivery, procurement, compliance)

Status quo (2025)

Czechia’s “digital rails” are unusually mature for identity and secure messaging: Bank iD now counts ≈5 million users (about three-quarters of the working-age population) and is heavily used to access state services; Data Boxes (datové schránky) surpassed 4.02 million active boxes and 1.49 billion cumulative messages with ~99% successful deliveries, making legal-grade digital delivery routine for citizens and firms. The legal and operational footprint keeps widening (e.g., larger message sizes, broader agency coverage), yet several back-office registers and workflows remain siloed or paper-anchored. Radio Prague International+2info.mojedatovaschranka.cz+2

Size & share of GDP

• Public administration & defence (NACE O84) contributes a mid-single-digit share of GVA; use Eurostat nama_10_a10 for exact annual shares and trends. European Commission+1

Four strengths (longer sentences)

1. Widespread, bank-grade e-identity and legally recognized, high-reliability e-delivery mean many state–citizen interactions can already run end-to-end online, reducing queue time, postage cost, and fraud risk while giving agencies cryptographic proof of service. Radio Prague International+1

2. The adoption curve is broad, cutting across residents and businesses, because Bank iD leverages familiar banking UX and the Data Box is mandatory for many legal entities, so digital by default is not just an option but a norm in high-volume processes. Radio Prague International+1

3. The rails are stable at national scale (millions of active identities and boxes; billions of messages), which lets ministries and municipalities design services that assume high availability rather than pilot-grade fragility. info.mojedatovaschranka.cz

4. Targeted fixes—like enabling foreigners to use BankID and increasing Data-Box payload limits—show the ecosystem can iterate pragmatically, improving coverage and use-cases without rebuilding core platforms. Expats.cz+1

Four weaknesses (longer, candid sentences)

1. Core registries, sector systems, and municipal platforms still expose uneven APIs and data models, so vendors and agencies spend too much on bespoke “plumbing” and duplicative data entry, slowing service redesign and raising lifetime IT costs. speyside-group.com

2. Procurement remains fragmented and risk-averse, favoring lowest price over outcomes and re-use, which deters product-style delivery and traps agencies on legacy stacks with expensive change orders.

3. Analytical use of administrative data is limited by inconsistent consent, audit, and metadata practices, so high-value analytics (fraud detection, proactive benefits, policy evaluation) advance patchily despite rich raw data.

4. Talent bottlenecks in product management, service design, cybersecurity, and data engineering inside government keep dependency on large vendors high and make multi-year transformation brittle.

Five international examples — what to copy

1. Estonia (X-Road, once-only principle): Mandate machine-readable, audited data-sharing across registers so people never submit the same data twice; enforce logging and consent at the rail level.

2. Singapore (Singpass/MyInfo): Provide a unified consent vault that lets citizens pre-approve data sharing for specific services and revoke with a click, turning privacy into an enabling control rather than a blocker.

3. UK (GOV.UK Pay/Notify + Design System): Ship shared payments, notifications, and UI components so ministries stop rebuilding commodity parts and focus on policy-specific workflows.

4. Denmark (NemKonto + e-Invoicing): Tie instant payments and mandatory e-invoicing to the state, compressing cash cycles for SMEs and giving Treasury real-time transparency.

5. France (code.gouv / public code): Require open APIs and open-sourced reusable components for commodity functions, lowering vendor lock-in and accelerating small-supplier participation.

Five priorities for Czechia (long form)

1. Make “once-only” real with mandatory open APIs. Publish canonical data models (persons, businesses, property, vehicles, permits) and require every register to expose versioned, audited APIs with uptime SLAs; wire Bank iD consent receipts into these calls so every data pull is lawful, logged, and explainable to the citizen. Radio Prague International

2. Turn compliance into product: Pay, Notify, and e-Invoicing as national services. Offer state-run payments and notifications with standard pricing and SDKs; mandate e-invoicing and acceptance of instant payments for public bodies and utilities; measure success in average settlement time, refund latency, and error rates rather than project counts. info.mojedatovaschranka.cz

3. Procure outcomes, not systems. Standardize outcome-based frameworks (e.g., time-to-decision, abandonment rate, fraud loss) and allow multi-vendor lots with interface conformance tests; require code escrow or open-source licensing for generic components to cut future lock-in.

4. Stand up a Government Data Trust. Create a privacy-by-design platform with catalogued datasets, de-identification pipelines, and safe-room access for accredited research and policy teams; publish impact logs (what decisions improved, what frauds caught) to keep legitimacy.

5. Close the talent gap with a Digital Service Corps. Hire fixed-term product, design, and data engineers on market-aligned pay, second them into ministries with clear ship targets, and measure by services shipped, defects fixed, and adoption—retaining institutional knowledge through playbooks and reusable components.

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26) Natural resources & environment (forestry, biodiversity, conservation)

(forest management, protected areas, drought/flood risk, Natura 2000, monitoring)

Status quo (2025)

Czechia is a heavily forested EU country (≈34–35% forest cover) but is still normalising after the 2018–2022 bark-beetle crisis and drought years; official and international trackers show continuing forest-loss pockets and recovery dynamics, while Intersucho and EEA indicators keep drought/flood risk on policy dashboards. The protected-areas network is dense by EU standards—nationally protected land ≈16.8% and the Natura 2000 network ≈14% of territory in 2022—with overlapping designations managed chiefly by the Nature Conservation Agency and park administrations. nli.gov.cz+2globalforestwatch.org+2

Size & share of GDP

• Forestry & logging is a small but strategic contributor in national accounts (part of NACE A); environmental services and conservation sit in several NACE divisions and satellite accounts—use national/Eurostat tables for precise shares. The extent metrics are clearer: forest area ~34–35% of land, Natura 2000 ≈14%, specially protected ≈16.8%. nli.gov.cz+1

Four strengths (longer sentences)

1. A large, contiguous forest estate with long silvicultural traditions provides steady timber flows, carbon sinks, and recreation services, and a dense network of research bodies gives foresters evidence to diversify species and manage disturbance. nli.gov.cz

2. The Natura 2000 and nationally protected-area lattice is extensive and institutionally clear, with roles split among the Nature Conservation Agency and park administrations, allowing planning to balance biodiversity, tourism and local development transparently. Statistika+1

3. Monitoring capacity is strong by regional standards—from satellite-aided forest loss dashboards to drought indices—so policy can react faster to pests and hydrological stress than in systems reliant on sporadic field reports. globalforestwatch.org

4. Downstream wood and paper value chains are close at hand, creating circular opportunities in construction timber, panels and packaging, and enabling premium markets for verified low-impact wood when certification and data are in place.

Four weaknesses (longer, candid sentences)

1. The bark-beetle shock revealed vulnerability of spruce-heavy stands under warming and drought, with recent science placing Czechia among Europe’s higher-infestation countries and pointing to the need for diversified, climate-resilient mixes and better salvage logistics. vulhm.cz

2. Hydroclimate variability (droughts/floods) strains both forests and protected habitats, making water retention and landscape connectivity essential to avoid biodiversity loss and timber-quality downgrades. OECD

3. Data interoperability gaps persist between forestry, biodiversity, and land-use datasets, so it’s hard to track species outcomes and carbon stocks at parcel level and to pay land stewards for verifiable ecosystem services.

4. Economic incentives still over-reward raw volume versus verified ecological outcomes, limiting investment in mixed-species regeneration, deadwood retention where appropriate, and habitat restoration at scale.

Five international examples — what to copy

1. Finland (data-driven forestry): Open parcel-level forest data and harvest plans via APIs, enabling precision silviculture, pest early-warning, and lender/insurer products tied to verifiable practices.

2. Germany (close-to-nature forestry): Scale mixed-species, uneven-aged management with formal guidance and subsidies tied to biodiversity and drought resilience.

3. France (payment for ecosystem services): Use PES schemes to pay landowners for water retention, habitat corridors, and carbon verified to national standards.

4. Spain (catchment restoration): Link re-wooding and agroforestry to basin-level water programmes, financing upstream retention to cut downstream flood risk.

5. Austria (timber construction & certification): Pull high-value timber demand through public procurement and building codes, rewarding traceable, low-impact wood with price premia.

Five priorities for Czechia (long form)

1. Diversify forests at speed with climate-resilient silviculture. Fund mixed-species regeneration, enrichment planting, and assisted migration pilots in beetle-affected regions; tie support to parcel-level plans and monitoring and publish annual species-mix dashboards so progress is visible and financeable. vulhm.cz

2. Make water retention a land-management KPI. Co-finance micro-retention (ponds, swales, leaky dams), wetland restoration and riparian buffers with PES contracts; measure impact using standard hydrological indicators and the national drought indices, and let municipalities count verified retention toward flood-risk targets. OECD

3. Build a Natural Capital Ledger. Integrate forestry, Natura 2000, species, and carbon datasets under common IDs; expose open, audited APIs so insurers, lenders and buyers can verify claims about low-impact timber and biodiversity co-benefits; require machine-readable monitoring for projects receiving public funds. Statistika

4. Pay for outcomes, not inputs. Pilot biodiversity contracts where land stewards earn bonuses for measured habitat/connectivity gains (e.g., species indices, deadwood metrics) rather than reimbursed costs; align with EU nature-restoration targets and allow stacking with carbon/water PES when evidence supports it.

5. Pull demand with public procurement and building codes. Set minimum recycled/wood content and circular-design requirements in public buildings and infrastructure; validate traceability via digital product passports so Czech wood earns premiums in DACH/ Nordics; back skills & factory upgrades for timber construction to localise value.

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Key recent sources

• Digital rails: Bank iD users ≈5 m (Aug 2025, Radio Prague International); Data Boxes statistics (active boxes 4.02 m; 1.49 bn messages; 99% delivery). Radio Prague International+1

• Public-sector industry share: Eurostat nama_10_a10 (GVA by industry). European Commission

• Forestry extent & risk: Forest cover 34.1% (National Library of the CR note, Jan 2025); Global Forest Watch Czechia dashboard; bark-beetle infestation comparisons (VÚLHM). nli.gov.cz+2globalforestwatch.org+2

• Protected areas: CZSO “Protected areas” (Natura 2000 ≈14%; specially protected ≈16.8%). Statistika

• Environment indicators & drought context: OECD “Environment at a Glance: Czechia” (2025). OECD