Report on implementation

of the Export Strategy

of the Czech Republic 2012 - 2020

Executive Summary

(April 2014)

In accordance with Czech Republic Government Resolution No. 154 of 14 March 2012 on the

Export Strategy of the Czech Republic 2012-2020 (hereinafter referred to as “Export Strategy”), the

Ministry of Industry and Trade presents for information of the Czech Republic Government members

an annual report on implementation of the Export Strategy in 2013 (hereinafter referred to as

“Report”).

The Report contains information on measures taken to implement the Export Strategy and

executive summary of specific activities undertaken to promote exports, investment and trade

policies that are placed in the broader context of the world economy development, and it opens up a

space for further changes.

X X X

The Czech Republic is a small, open economy that, like most developed economies, currently

has no alternative but to export, in order to ensure sustainable long-term prosperity and economic

growth. Anything produced in the Czech Republic must be largely exported; conversely, crucial part

of the input into economy comes from imports. In global comparison, the Czech Republic even

belongs amongst countries with the largest ratio of exports of goods and services to GDP and this

dependence continues to increase. While in 1995 the export of goods and services contributed to

the gross domestic product by 51%, in 2000 this figure rose up to 63% and in 2010 it was almost 79%.

In comparison, Germany, that is our largest trading partner, the exports comprise less than 50% of

GDP.

Czech foreign trade is sensitive to changes in global markets. Risk lies in the fact that the vast

majority of Czech exports are destined to the EU market. That is why any deceleration of European

economy always results in complications for Czech companies, and the Czech Republic should take

this fact into account. Globalisation and diversification of our foreign economic relations, in

particular of the relations outside the EU, is therefore crucial for the future of the Czech economy.

The primary role of the state is to promote Czech firms in their effort to acquire contracts on global markets. The state should strive to ensure identical of similar conditions and support that their competitors receive, including the equal standing of our exporters in the target market environment. The state should also implement suitable measures and support to increase the numbers of Czech exporting firms and also the share of small and medium-sized enterprises (SMEs) on Czech exports. This is the purpose of the active support to exports of goods and services, which is included in the Export Strategy.

In order to fulfil the objectives of the Export Strategy, the key factor is the active involvement of respective ministries and institutions as well as of the business community, which must become an equal partner to the government (Project No. 8 - Management and communication platform), because economic diplomacy, which is an integral part of promoting exports, is the most successful when based on alliance of businessmen and politicians, representatives of employees and of the government.

2

From 2012 when 12 Export Strategy project teams had been established1, their members have been striving to fulfil the tasks of the Export Strategy. In 2013 the MIT international network was expanded, information services were developed and provided to exporters, diversified exports to non-European countries were supported, export funding was provided for, marketing support in foreign countries and business missions in foreign countries under the auspices of the Czech Republic’s top representatives were provided.

The Steering Committee to implement the Export Strategy2 met once in the last year, on 13

September. The next Steering Committee meeting, which had originally been scheduled to December 2013, was held on 9 January 2014. At both its meetings the Steering Committee evaluated cooperation in fulfilling the Export Strategy objectives and identified new obstacles and challenges for exporters. The Steering Committee members agreed on the need to jointly provide for efficient promotion of our economic interests in foreign countries through the mediation of central administration bodies and institutions established by them, which closely cooperate with each other, are aware of each other, have clearly defined tasks and operate in mutual partnership. It will be necessary in 2014 to newly set up certain directions of the Export Strategy in relation to the current development and discuss the agenda with partners in the Steering Committee; its roles and powers could also be reassessed and adjusted to the new needs.

Global diversification of Czech exports

In 2013 the MIT continued fulfilling tasks to diversify Czech exports (Project No. 3 - Global

diversification of exports). Conditions were created to expand Czech exports to non-European

countries and increase the number of export branches with higher added value, involve more small

and medium enterprises in exports and facilitate their access to foreign markets.

In compliance with the Export Strategy, expert teams for the 12 priority countries3 continued

their activities. Action plans for each priority country were supplemented and updated during the

year. In order to improve information of Czech exporters about priority markets, interactive profiles

of all 12 priority countries were prepared, which include detailed information on the trade conditions

and business, action plans for each territory, reference to leaders of the expert teams and links to

other information sources. Furthermore, interactive profiles of the 26 countries of interest4, which

also have significant potential for the Czech exports, were also completed and updated. This

information was posted at the official Internet portal for business and exports BusinessInfo.cz.

1 Project teams are comprised of experts from government and business leaders who work together to implement specific measures aimed

at supporting Czech exports. A bidirectional dialogue runs between the teams, which is crucial for implementation of those measures that have the capacity to offer real assistance to our exporters on foreign markets. 2 The Steering Committee is a top body to implement the Export Strategy, dealing mainly with strategic and conceptual issues. The Steering

Committee is chaired by the Minister of Industry and Trade. The members are comprised of Deputy Minister of Foreign Affairs, Deputy Minister of Finance, Deputy Minister for Regional Development, Deputy Minister of Agriculture, Deputy Minister of the Environment, Deputy Minister of Defence, President of the Confederation of Industry of the Czech Republic, President of the Czech Chamber of Commerce, Chairman of the Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic, Chairman of the International Chamber of Commerce of the Czech Republic, Chairman of the Board of Directors of the Association of Small and Medium Enterprises and Crafts of the Czech Republic. 3 Brazil, People’s Republic of China, India, Iraq, Kazakhstan, Mexico, Russian Federation, United States of America, Serbia, Turkey, Ukraine,

Vietnam. 4 Angola, Argentina, Australia, Azerbaijan, Belarus, Egypt, Ethiopia, Chile, Ghana, Croatia (Croatia is an EU member country from 1 July

2013), Indonesia, Israel, Japan, Republic of South Africa, Canada, Colombia, Morocco, Moldova, Nigeria, Norway, Peru, Senegal, Singapore, United Arabian Emirates, Switzerland and Thailand.

3

An analysis of the development of foreign trade in priority countries and countries of

interest and a debate on potential modifications or additions will be included in the further update

of the Export Strategy. A discussion on more distinct focusing of the Czech export sector priorities

will also be initiated.

Business missions were prepared together with associations of entrepreneurs, which took

place in connection with official foreign trips of the MIT representatives, during state visits abroad of

other senior officials of the Czech Republic or during meetings of the joint intergovernmental bodies

for economic cooperation. In 2013, there were 22 business missions to 26 countries (11 missions to

priority countries and 4 to countries of interest). Consistent support has been provided to pro-export

interests of the Czech Republic in the form of preparation of meetings of joint inter-departmental

and inter-governmental bodies under the sponsorship of the MIT. In 2013, there were 20 sessions of

joint bodies for economic cooperation (6 addressing issues in priority countries, 4 in countries of

interests). Within the framework of other pro-export-oriented activities, there were a total of 196

events in the last year in which Czech companies participated (74 in priority countries and 20 in

countries of interest).

2013 was a record year for Czech exports. The total Czech exports amounted last year to CZK

3.157 trillion, which is the highest value in the history of the separate Czech Republic. Compared to

2012, Czech exports increased by 2.8%.

Czech foreign trade results for the past year also show that in spite of not too favourable

conditions of economic development in the Czech Republic and continuing stagnation on many

global markets, the started process of Czech export diversification continued also in 2013, though in

a slower pace rather than in the preceding period. Nevertheless, growth rates in Czech exports to

both priority countries and countries of interest exceeded the growth of total Czech exports as well

as the growth of exports to EU markets. According to available data Czech exports to priority

countries increased by 3.2% and to countries of interest by 6.4%, while total Czech exports went up

by 3.5% and by 2.4% to EU markets in the same period.

Data for the first two starting years of the Export Strategy should also be given for the

purposes of general comparison. The data indicate that compared to 2011 Czech exports to priority

countries and countries of interest increased in 2013 by 28.6% and 20.1%, respectively, while total

Czech exports went up by 9.7% and by 6.6% to EU markets in the same period.

4

The ratio of EU-28 countries5 in total Czech exports amounted to 83.31% in 2011 to decline

to 81.22% in 2012 and further down to 80.96% in 2013. Conversely, in the case of priority countries

this ratio increased in the same years to 9.42% (2011), 10.99% (2012) and 11.04% (2013), and in the

case of countries of interest to 5.15 (2011), 5.44% (2012) and 5.64% (2013). These single-digit

percentage changes may seem small; it should, however, be noted that one percentage point in

terms of the total Czech exports is roughly equal to CZK 30 billion.

Making full use of the European Union instruments to support Czech exports

The MIT commercial policy (Project No. 9 - EU trade policy and exports to a single internal

market) focused in the past year in particular on instruments designed to implement specific Export

Strategy objectives, which include diversifying exports to countries outside the EU and shifting

Czech exporters up the value chains into segments and sectors with higher added value, by

removing barriers in accessing new markets and providing cheap inputs into production.

Within the framework of a multilateral trading system, the most important documents were

adopted by the Ninth World Trade Organization (WTO) Ministerial Conference, which was held on 3

to 6 December 2013 in Bali. Negotiations regarding the first global agreement from the

establishment of the WTO and Doha Development Agenda (DDA), in particular the Trade Facilitation

Agreement, were completed. Implementation of the DDA is expected to result in approx. 10%

savings for economic entities due to reduced costs. Czech exporters will have a better access to the

partners’ markets and they will be informed better about custom clearing procedures. The

commitments in the area of transit will not affect our bilateral agreements in the road transport. The

Ninth Ministerial Conference also adopted other documents pertaining to agriculture and trade and

development within the DDA. The Agreement on Agriculture (AGRI) will be positive for Czech

exporters because it generates higher pressure on removing all forms of export subventions of WTO

members and, partially, improves access to partners’ markets by forcing the full use of tariff quotas.

The ministers’ decision to prepare a WTO working agenda for DDA negotiations could unlock the

negotiations on the priority issues for the Czech Republic. Those include particularly the Non-

Agricultural Market Access (NAMA), trading in services and protected geographical indication (GIs).

Negotiations regarding revision of the Information Technology Agreement (ITA) and negotiations

regarding the Multilateral Trade in Services Agreement (TISA) continued, but were not completed.

Regarding bilateral relations, the negotiations regarding free trade agreements resulted in the

start of implementation of agreements with Central American countries and with Peru and

Colombia. Czech firms acquired a number of new opportunities, both in areas where cooperation

already existed as well as in entirely new fields. Preliminary estimates indicate that the agreements

with Peru and Colombia should lead to an increase of Czech exports to these countries by 12% and to

estimated savings on tariffs for our exporters of around CZK 50 million.

5 After its accession to the EU Croatia, originally included among countries of interest, is reported among EU countries (EU 28), which fact

was recalculated also for the past periods for the data to be comparable. Since the Croatian ratio in total Czech exports is about 0.3%, the ratio of EU countries increased and the ratio of countries of interest in total Czech exports decreased accordingly. In spite of this change the ratio of EU Countries in Czech exports shows a decreasing trend, while priority countries and countries of interest keep increasing.

5

The beginning of negotiations on free trade agreements with the USA (so-called TTIP) and

Japan were another crucial measure. With regard to their European significance, both agreements

have an enormous potential and they promise opening up new opportunities for Czech firms on

those markets as well as significant simplification and cheapening of business cooperation. Political

consensus was achieved in negotiations with Canada and agreements with Moldova and Georgia

were signed in 2013.

The MIT makes every effort to consult and communicate issues with the business community

during all stages of creation and application of trade policy instruments, both in the form of seminars

and roundtable discussions, as well as in the form of publishing information on its website or in

professional journals. Expert teams for agreements with the USA and Japan began their activities

(seven meetings of those teams took place in 2013; in addition to those the teams communicate in

an electronic form). As regards the agreement with the USA, special sections at the web portal

BussinessInfo.cz6 and MIT website7 were created.

The MIT implemented in 2013 a number of measures seeking increased support to exports to

the European single internal market aiming to improve services for businesses operating on the EU

internal market. These measures include particularly a continued project for accelerated procedure

for internally transferred employees of foreign investors. This project contributes to faster transfers

of highly qualified staff and managers from third countries that are temporarily seconded by their

mother company to subsidiaries in the Czech Republic. Ninety-seven applications were received and

positively resolved in 2013. In cooperation with CzechInvest the MIT also launched in 2013 the

Welcome Package project with the aim to improve efficiency of the procedure for receiving and

employing key foreigners who need to be granted very quickly work and residence permits so as to

place investments in the Czech Republic.

In 2013 the MIT continued offering services to entrepreneurs and citizens, which considerably

facilitate their involvement in the internal market. In particular, these include services of the Single

Point of Contact (SPC), the SOLVIT Centre and the Contact Point for Products (ProCoP). These three

services are combined in the Czech Republic into a single advisory system so that Czech

entrepreneurs do not need to worry what office to contact in case of problems. A promotional

strategy was prepared and an Internet-based campaign of pay-per-click (PPC) type for SPC, SOLVIT

and ProCoP services was launched in 2013 to improve awareness of those services and increase the

numbers of their users. Further intensification of information and promotional activities for the

services of the single advisory system is expected in 2014.

The SPC provides information on the service conditions in the Czech Republic and in other

Member States and facilitates contact with relevant national authorities. The main benefit of the SPC

is the ability to obtain all necessary information and complete all formalities related to starting a

business in the service sector in one place and in electronic form. To improve the user-friendliness,

the English version of the electronic SPC at Businessinfo.cz was revised.

6 http://www.businessinfo.cz/cs/clanky/transatlanticka-dohoda-o-obchodu-a-investicich-mezi-eu-a-usa-ttip-40811.html#!&chapter=1

7 http://www.mpo.cz/dokument144198.html

6

Further development of the SPC is consulted with social partners, in particular with the

Confederation of Industry of the Czech Republic, which covers this agenda within the framework of

its activities in the European Economic and Social Committee. A revision of the Czech version of the

electronic SPC and a major upgrade of the SINPRO information system are expected to make the

work of the SPC even more efficient. In 2013, the SPC responded to 3258 queries of entrepreneurs.

The SOLVIT Centre offers Czech citizens and entrepreneurs a possibility to amicably resolve

their complaints against actions of Czech and foreign authorities, which may be contrary to the

principles of free movement of goods, services and people. The Centre solves these problems free of

charge, within a period of maximum 10 weeks. In 2013, the Czech SOLVIT Centre received 165

complaints. Most complaints concerned usual matters and they were successfully handled by the

SOLVIT Centre.

The Contact point for products (ProCoP) provides information to entrepreneurs about

technical requirements on products whether subject to national or European regulations during

introduction of the product in the Czech or another EU country market. Among other, entrepreneurs

may learn whether their product distributed in the Czech Republic is subject to the prior approval or

registration. ProCop also provides general information on the functioning of the regulation of mutual

recognition and the application of the principle of mutual recognition. In 2013, ProCoP responded to

272 queries. Because of a promotional campaign in progress higher numbers of queries are expected

in 2014.

MIT Foreign Network

The MIT foreign network is one of the key instruments to support exports. Aiming to support

Czech exporters and their activities in priority countries and countries of interest, the MIT (Project

No. 10 – Optimizing network abroad) began creating, respectively restructuring and optimizing the

existing disparate structures into a uniform foreign MIT network.

Beginning on 1 August 2012, the MIT created a MIT foreign network by merging foreign offices

of CzechTrade and CzechInvest agencies. CEBRE8 representation in Brussels was added in March 013.

The MIT foreign network now includes 47 offices and their staff-members are regular MIT

employees. With regard to integration and effective coordination of MIT capacities, this number was

originally intended to grow up to 70. The recent development of the territorial priorities and Czech

exporters’ needs indicated that the final number of foreign offices could be about 60. There will be

no need for additional funding from the state budget as all the development of integrated network

will be financed by departmental funds.

8 CEBRE – Czech Business Representation to the EU was founded by the Czech Chamber of Commerce, Confederation of Industry of the

Czech Republic and Confederation of Employers’ and Entrepreneurs’ Associations to present and advocate Czech business interests before European institutions and European business federations directly in Brussels. To achieve its objective CEBRE received support by the MIT through CzechTrade.

7

Integration focuses primarily on increased capacity for exporters (primarily to the priority

countries and countries of interest), concentration of commerce and investment into one place,

unification of foreign investment and export strategy marketing, increased quality of services for

exporters, sectorial and territorial specialization, and increased efficiency and flexibility of the

network. The primary objective of the network and MIT foreign representations is to generate

commercial opportunities for Czech businesses and render intelligence and assistance on the spot.

The project aims to cover all important markets, in particular in priority countries and countries of

interest.

New services for exporters

The portfolio of services for exporters included in 2013 four main sections: consulting,

education, information services and MIT foreign network services (Project No. 1 - Shared Services

and Intelligence for Export; Project No. 4 – Services for Exporters; and Project No. 11 – Foreign

Network Services).

Development of information services rendered to exporters free of charge was stressed. That

is why a joint portal named Intelligence for Export9 was created with parallel Client and Partner

Zones, which provide for quick and simple information sharing by firms. In addition to the MIT

institutions, which primarily focus on support for exports, the joint portal partners include other

organisations, such as the Confederation of Industry of the Czech Republic, Czech Economic

Chamber, Association of Small and Medium Enterprises and Crafts of the Czech Republic,

International Chamber of Commerce in the Czech Republic, which can support Czech exporters with

their information and services. There is a space to involve in the future new partners and expand the

offer of information services.

Advisory services based on assistance to exporters abroad through the MIT network were

rendered in the form of export packages. Firms expressed their satisfaction with the new system of

services. 455 packages were processed in 2013, which is by 139 more rather than in 2012. Advisory

services will be rendered in the form of export packages reflecting size of firms and significance of

the territories in question also in 2014. That exporters are interested in the services is demonstrated

by the growing numbers of export consultations, by 54% as compared to 2012. CzechTrade

rendered its services to 1,692 clients in 2013, including 503 cases of new clients.

9 The MIT prepared a new portal “Intelligence for export”, which is a first joint information portal designed only for exporters. The portal

facilitates access and expands opportunities for receiving all information they need to know about foreign trade. Intelligence for Export is accessible via the official portal for business and exports BusinessInfo.cz. An Internet user interface “Client Zone” was created to offer on-line services as well as other benefits, such as extra information service, administration of services and jobs, etc. A so-called “Partner Zone” is been created for the involved partners (business associations and public institutions); this should be an inter-departmental intelligence system improving significantly the information exchange between public administration entities and removing duplicity to a considerable extent. The MIT responses in this way to the requirements of business associations that the SINPRO shared information space should be more accessible. To operate the Intelligence for Export portal and Partner Zone, an editorial board comprising one representative per involved organisation was established in January 2014.

8

In the field of CzechTrade educational services, firms used 49 events with export topic, in

particular specialised and territorial workshops, and 4 export conferences. The events were attended

by 1,030 participants. A new year of the Business Diplomacy Course took place under participation of

42 participants from the MIT, MFA, CzechTrade and CzechInvest.

The CzechTrade Export Club10 had as many as 549 members in late 2013. A Client Zone within

the Intelligence for Export portal was prepared for the Club members during the year. In 2014 they

will be provided with extra information services. In addition, member firms will be offered specialised

events in export education and they will be presented as a standard in the Directory of Exporters.

Marketing support abroad received an extraordinarily positive feedback from firms. It is one

of the most popular forms of support by Czech firms. In 2013 Czech firms presented themselves

mostly in the form of joint exhibitions under the state auspices, including participation of a MIT

representative. There were 32 Czech official participations at international exhibitions and trade

fairs abroad, which were attended by 376 exhibitors. Two thirds of events took place in priority

countries and countries of interest, other events were organised in EU countries. A questionnaire-

based survey of exhibitors conducted by MIT project managers indicated that contracts amounting

approx. to CZK 5 billion were initiated and signed in connection with participation at those events.

Within the framework of support promoting exports at trade fairs and exhibitions in the

Czech Republic, there were 15 domestic events in 2013, mostly incoming missions. Traditional

participation of the MIT at the 55th International Engineering Fair (MSV) in Brno also took place;

automation was the crucial topic and Turkey was the partner countries this time.

In connection with the 22nd Olympic Games 2014 in Sochi, preparatory works began in 2013 to

implement a presentation of Czech industrial and commercial activities within the project "Czech

Footprint", following up a proven and successful project from 2012 implemented in connection with

the Summer Olympic Games in London.

CzechTrade organises a project "Joint Participation at Specialised Exhibitions and Trade Fairs

Abroad 2013 – 2014" (SVV 2013 - 2014). Entrepreneurs are very interested in this project, which is

demonstrated also by the fact that CzechTrade received to date almost 500 applications for trade

fairs from eligible applicants in 2014. The project objective is to provide through joint participation at

selected specialised trade fairs and exhibitions the target groups (profession organisations and

individual companies, in particular SMEs) with attractive services to enhance competitiveness of

products and services of Czech firms on foreign markets. The Czech firms, which meet conditions for

participation, can be granted support up to 100% of eligible expenditure, the maximum amount

being CZK 120,000 per exhibitor and trade fair.

10

From early 2013 CzechTrade offers Czech firms membership in the Export Club, which is integral part of the Czech Republic’s Export

Strategy. Through the Export Club CzechTrade renders assistance in particular to SMEs. The Club offers extra export services supporting presentation of firms abroad, mediating unique information about opportunities and trends on foreign markets and opportunities to consult specific export plans with professionals.

9

The SVV 2013-2014 project is one of the important instruments of the Export Strategy, which

efficiently supplements the agenda of MIT official participations and CzechTrade foreign events.

Fourteen trade fairs attended by 175 entities were supported under the project in the

second half of 2013. Most Czech firms, 33, presented themselves at the Heim+Handwerk trade fair in

Munich, Germany. The highest interest to date can be seen among Czech firms in the Coneco

building fair in Bratislava to which 55 firms enrolled, and in the ISPO fair of sports goods in Munich,

which will be visited by 42 firms. 76 trade fairs will be supported in 2014 in 25 countries, such as in

Russia, Germany, USA, China, Kazakhstan, Turkey or South Africa.

Within the framework of information activities, the MIT intends to continue with publishing of

“Export in a nutshell” publication, which offers basic information designed primarily for companies

starting to get involved in export from the ranks of small and medium business and with activities of

the Green Line for export, which provides exporters with effective information assistance and

together with the BusinessInfo.cz portal serves as a signpost of state-offered services for exporters.

From its origin eight years ago the Green Line answered over 13,000 queries (13,158 as of 31

December 2013), including 1,640 queries in 2013, which is the highest number from 2010. In a year-

to-year comparison the number of queries increased by over 5%. Two of three clients contacted the

Green Line via a free telephone line 800 133 331. The remaining third of queries were in the

electronic form using the contact e-mails: export@mpo.cz or info@czechtrade.cz.

The result of the audit, which is in progress, can be inspiring for an update of the Export

Strategy. The audit should assess correctness of CzechTrade process and activities.

Supporting export in the form of export financing and insurance with state

support

Financing and insurance with state support is very important for exporters (Project No. 5 –

Export financing and insurance). This is provided by the Czech Export Bank (CEB) and Export

Guarantee and Insurance Corporation (EGAP). Again in 2013 the Government ensured sufficient

funding for them so that both CEB and EGAP could cover Czech firms’ demand for export financing

and insurance.

International sources of financing and development cooperation

The Export Strategy emphasizes also involvement of local companies (primarily exporters) in

implementation of foreign development cooperation projects as well as in implementation of

specific projects financed from international sources in developing countries and countries with

transitive economies (Project No. 6 – International sources of financing and development

cooperation).

10

The Czech Republic annually contributes to the development or humanitarian aid projects and

to international development organizations’ budget and the EU (incl. EDF11) a relatively large volume

of funds. The long-term problem that, however, remains is that the volume of these contributions is

not reflected in the growing share of local companies on implementation of projects in developing

countries or countries with transitive economies12. Czech firms often have very good references in

these countries, but the Czech Republic has not yet learned how to utilize this particular potential.

The main objective of this project is to change this situation.

The Czech Development Agency contributed to the project team’s work with definitions of two new

activities. These include accreditation of the Czech Republic for delegated cooperation and

preparation of a programme to support business opportunities in the form of feasibility studies.

Both activities were started in 2013 and their specific outputs are expected in 2014.

Investment and innovation for export of goods and services

The role of foreign investors for Czech exports is extremely significant as it combines incoming

investment and exports of products outside our country (Project No. 12 – Investment and innovation

for exports of goods and services). Despite the fact that CzechInvest does not primarily focus on

providing support to exports, its role in this domain becomes increasingly crucial. CzechInvest’s

clients belonged among the twenty largest Czech exporters both in 2012 and 2013. Programmes

and projects implemented by CzechInvest, such as for instance investment incentives programme,

Marketing (OPEI), GESHER/MOST or CzechAccelerator 2011 – 2014, positively nurture development

of existing Czech companies, which are able to find more commercial opportunities abroad.

Several projects were implemented within the framework of efforts to promote

internationalization of Czech enterprises in the fields of research, development and innovations.

These include for instance the GESHER/MOST project, which supported seven firms/institutions in

four calls. The aim of the project is to develop competitive products with export potential, acquire

new contacts and experience, and internationalize companies. Another project is the

CzechAccelerator 2011 – 2014 project, where in 6 calls a total of 37 companies participated. Six

companies will participate in the sixth call of the programme. According to the available data to date,

the project resulted in conclusion of 35 strategic (technological) partnerships, 33 commercial

partnerships, with others being currently negotiated. Twenty-two participants continue their

businesses in the destinations, and the volume of acquired orders is estimated by participants at over

CZK 7 billion (data for the first four calls). Mentioned as an example of the project participant can be

Ki-Wi Digital s.r.o., which company attracted attention with its OSCAR communicator – tablet for

seniors. Ki-Wi Digital s.r.o. participated in the CzechAccelerator project for a second time.

11

EDF – European Development Fund – positioned outside the EU budget. Based on contributions, EDF finances projects in the poorest

countries of Africa, the Caribbean and the Pacific. 12

The number of successfully implemented projects in transitive and development countries has a direct impact also on diversification of

Czech exports.

11

Supporting regional export activities and one-stop-shop for export

Within the framework of supporting regional export activities, the MIT cooperates on a close

basis with the Czech Chamber of Commerce and Confederation of Czech Industry (Project No. 7 –

Clusters and pro-export initiatives of local governments). Specific attention is also paid to developing

cooperation with regional governments. In 2013 regions were called onto by the Minister of

Industry and Trade to develop their cooperation in supporting exports, for instance in the form of

regional export clubs. Project anticipates establishment of regional councils to develop and support

exports, which will make information on already existing international, regional, municipal and

university cooperation activities available faster and in greater extent. The degree of international

involvement of regions and internationalization of regional firms varies. The aim of the project is,

amongst other, to offer successful solutions and organizational assistance in spreading these into less

involved regions. MIT regional activities also focus on support of sectoral alliances and clusters13,

which bring together predominantly innovative firms, which have potential to succeed on foreign

markets. Clusters are financially backed in the Czech Republic from the EU structural funds via

CzechInvest. Currently, there are approximately 60 cluster initiatives active in the Czech Republic in

various stages of development. In 2013 the MIT considerably improved and intensified

communication with representatives of the National Cluster Association as regards suitable forms

of support for export activities of the innovative companies in clusters by the Government and its

institutions. Instruments to support clusters in entering third markets are therefore considered in

the new programming period. The MIT also began intensive cooperation with many Czech colleges

that focus on international trade, because we should be able to predict better and in a more

qualified way the future development of global economy so that we can respond to coming changes.

The Czech section of the Enterprise Europe Network (EEN CZ) plays an important role in

support for internationalisation of SMEs through the mediation of the project Business

and Innovation Support Network (BISONet 2008 – 2014). One of its main objectives is to support

businesses of small and medium enterprises on international markets. The project, which is

implemented mainly by a consortium of eleven regional partners coordinated by the Technology

Centre at the Academy of Science of the Czech Republic and four associated partners (including

CzechInvest and Czech Economic Chamber), is co-financed with 40% from the MIT budget (60% co-

financing is granted by the European Commission under the EU Framework programme for

competition and innovations 2007-2013 (CIP).

Organising participation of Czech exporting firms at foreign missions under the BISONet

project is one of the important forms of support of Czech exports. The objective of the project is to

find new business partners and support new Partnership Agreements with foreign partners. For

example, the consortium EEN CZ supported in 2013 forty-two Partnership Agreements (a total of 109

Partnership Agreements were supported from the start of the BISONet project).

13

Cluster is a group of regionally interconnected companies (entrepreneurs) and associated institutions and organisations, particularly

tertiary education institutions (universities, higher technical schools), whose links have potential to strengthen and increase their competitiveness.

12

The project One-Stop-Shop for Exporters (Project No. 2 – Information one-stop-shop)

continued in 2013. The main objective of the project is to transfer Government services as much as

possible to the Czech regions to be closer to entrepreneurs. Specifically, through 13 regional

CzechInvest offices the MIT works on providing exporters with efficient and easy access to relevant

information and on simplifying administrative and approving processes for export activities of Czech

firms. The agenda of regional export managers was transferred in the spring of 2013 to CzechInvest

regional offices, which began in 2013 providing information support of CEB and EGAP services.

Furthermore, the MIT plans to transfer part of SPC agenda to CzechInvest regional offices, provide

for information support in the field of protection of industrial ownership, set up interactions

between the one-stop shop and MIT international network, modernise Businessinfo.cz (in progress;

the pilot stage was launched in 2013), in cooperation with the MFA simplify and accelerate

procedures of document superlegalisation for entrepreneurs (the respective MFA section is hiring

new staff members). Amongst other, the MIT intends to use CzechPoints within the one-stop-shop

network as soon as the respective regulation is enacted (currently, there are CzechPoints for

entrepreneurs at the Czech Chamber of Commerce workplaces). Finally, a marketing campaign

promoting complex Government services within the one-stop-shop network should be launched.

The project should result in the integration of services of eight institutions in a single office so

as to offer Government services closer to entrepreneurs (13 regional offices), reduce the exporter’s

time (from days to hours) and costs for handling approval procedures (e.g. superlegalisation of

documents), eliminate the need of personal visits to authorities and make the Government services

in support for exports and business more efficient through information sharing in a single

information system (approx. 10 institutions, which currently use separate systems and databases,

will be involved).

The MIT is going to continue fulfilling proactively in next years the Export Strategy

objectives, which have been discussed in detail with representatives of the business sphere,

responding to the main needs of exporters. For our firms to succeed on the global market and

reinforce their competitiveness, it will also be necessary to solve one of the key problems of the

Czech Republic – the low added value of our exports per inhabitant, which is due to inadequate

involvement of Czech economy in the global value chains14. We are prepared to discuss with

business representations how to add optimally this crucial area accelerating economic growth to

the Export Strategy.

14

A statement from the latest economic survey prepared by OECD.

13