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With the growing size of enterprise the share of their focusing only on regional<br />

market is decreasing and the share of their focusing on EU, EFTA and other countries market<br />

is increasing. The biggest difference is between enterprises with different owners. While<br />

Czech firms operate especially on the regional and national market (90 % of firms), the firms<br />

of foreign owners more often operate on foreign market (for 36.5 % of them the foreign<br />

market is more important) (CZSO, 2010).<br />

Factors hampering innovation activity<br />

Similarly to Eurostat also the Czech statistical office (CZSO, 2008d and CZSO,<br />

2008c) analyses factors hampering innovation activity. These factors are divided into three<br />

groups: market factors (2 factors), knowledge factors (4) and cost factors (3). Generally (and<br />

also with regard to Eurostat) it is possible to pronounce that the cost factors are the biggest<br />

barriers for Czech innovative enterprises (especially two of them: lack of finance within<br />

enterprise and innovation costs too high). In regards market factors 50 % of innovative firms<br />

consider the first factor (market dominated by established enterprises) as high or medium<br />

relevant and 41.4 % of innovative firms consider the second factor (uncertain demand for<br />

innovation goods or services) as high or medium relevant. The knowledge factors are the less<br />

limitative factors for Czech innovative enterprises. The factor of the lack of qualified<br />

personnel is the most important knowledge barrier for Czech innovative firms (37.3 %).<br />

CONCLUSIONS<br />

At the sight of individual group of indicators (so called dimensions) it was found out,<br />

that the Czech Republic is doing well especially in the dimension Economic effects where the<br />

CR ranks on the second place. In no other dimension the Czech Republic ranks better than on<br />

the 8 th place. On the contrary, the Czech Republic is doing poorly in the dimension of Finance<br />

and support (the second worst place from the selected countries) and in the dimension of<br />

Throughputs (European Commission, 2010).<br />

The Czech Republic has below-average share of innovative firms. The share of<br />

innovative enterprises is higher in manufacturing than in services and it is increasing with the<br />

size of the firms. In the group of enterprises with foreign owners the share of innovative<br />

enterprises is higher than in the group of enterprises with Czech owners. In the period 2006–<br />

2008 the share of technical innovative enterprises on total number of economic active<br />

enterprises in the Czech Republic was 31.6 %. The Pardubice region and the Hradec Kralove<br />

region have the highest share of enterprises within the Czech Republic. It is possible to<br />

pronounce that the cost factors are the biggest barriers for Czech innovative enterprises<br />

(CZSO, 2010).<br />

The main weaknesses of the Czech Republic in the field of innovations are lack of<br />

the capital (especially risk capital for very young firms), insufficient using of intellectual<br />

property rights and low cooperation between firms and research institutes. If the Czech<br />

Republic wants to reduce these disadvantages, the authors would like to recommend<br />

concentration efforts on support of risk capital, cooperative projects of firms and research<br />

organizations and patenting. Evaluation of effectiveness of the government support is very<br />

important, too.<br />

REFERENCES<br />

1. Commission Regulation No 973/2007 of 20 August 2007 amending certain EC Regulations on specific<br />

statistical domains implementing the statistical classification of economic activities NACE Revision 2.<br />

2. Commission Regulation No 753/2004 of 22 April 2004 implementing Decision No 1608/2003/EC of the<br />

European Parliament and of the Council as regards statistics on science and technology.<br />

3. Commission Regulation No. 1450/2004 of 13 th August 2004, by which the Decision of the European<br />

Parliament and the Council No. 1608/2003/EC about creation and development of the Community statistics<br />

in the field of innovation.<br />

4. Czech statistical office (CZSO) (2008a). Innovation Activities of Firms in the Czech Republic in 2004–2006.<br />

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