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A Proposal for a Standard With Innovation Management System

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Ladislav Ludvík and Jindra Peterková<br />

3. The size structure and innovation activities of enterprises in the Czech<br />

Republic<br />

3.1 The size structure of enterprises<br />

There are more than 1.1 million entrepreneurially active businesses (in 2011) in the Czech Republic.<br />

This means that one company gets a share of 10 residents. Over the past five years (2007-2011), the<br />

number of active entrepreneurial subjects has increased by almost 24%. The statistical distribution of<br />

enterprises by size groups is very uneven (see Table 1). The biggest number is represented by microenterprises<br />

(nearly 95%). Small enterprises (10-49 employees) represent about 4%, medium-sized<br />

enterprises 1%. Only two enterprises out of a thousand belong to the group of large enterprises. Over<br />

the past five years, the most noticeable growth has been seen in the group of micro-enterprises (more<br />

than 25%), within which enterprises without employees have been on the increase (an increase of<br />

33%). The remaining groups more or less have stayed the same in numbers.<br />

A group of micro, small and medium-sized enterprises, known as SMEs, represents 99.8% of all<br />

enterprises in the country. In addition to its significant abundance and diversity it has special features.<br />

It is significant in terms of employment in the corporate sector. It produces about 60% of employment.<br />

In value added, as an important indicator of economic activity, it is involved in approximately 54%, in<br />

per<strong>for</strong>mance 50% per<strong>for</strong>mance, 50% in exports etc.<br />

Large enterprises, which numerically create only 0.2%, realise the remaining "half" of the Czech<br />

economy. They decisively influence real economic and corporate events. It could be said they <strong>for</strong>m a<br />

substantially different business world. This applies particularly in companies that are affiliates of large<br />

transnational corporations.<br />

Similar relationships among large enterprises and SMEs are characteristic <strong>for</strong> the EU countries with<br />

regard to some of the specifics of their development.<br />

Table 1: The development of quantity of enterprises by size groups<br />

1)<br />

Active enterprises which demonstrated their size in the number of employees<br />

Source: Own processing based on the statistical data of Czech Statistical Office<br />

3.2 Innovative activities of enterprises<br />

What about innovation activities in the corporate sector in the Czech Republic? <strong>Innovation</strong> Statistics<br />

Office conducts a selective investigation in two-year cycles. The Czech Republic in the harmonization<br />

process in 2002 joined the EU-wide statistical survey on innovation. <strong>With</strong>in the EU the first innovation<br />

survey was in 1993. Over the years there have been some changes in the<br />

trace. Last survey was<br />

conducted<br />

<strong>for</strong> the period 2008-2010. Interesting findings result from them.<br />

Between 2004 and 2010 the share of innovative enterprises in all enterprises is around 50%, which<br />

means that every other enterprise innovated (see Figure 1). The period 2006-2008 appears to be<br />

favourable <strong>for</strong> innovations, in the next period there is a decrease in innovative activity. In enterprises<br />

that were developing innovations by an activity, the dominant were the non-technical innovations. The<br />

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