Virtual showrooms, printed house, water production from the air. These are examples of recent Czech innovations. A new state policy can contribute to making the average country a research leader in terms of putting ideas into practice. This requires more money and a number of changes.

The total Czech expenditure on research and innovation has been growing in the long term. In 2019, they were close to two percent of GDP, placing the Czech Republic in 18th place in the OECD rankings. The Ministry of Finance allocated CZK 37.5 billion in the state budget for this year, with a preliminary estimate of 38 billion per year for the next two years. However, experts agree that this is little. In the overall figures, we are below the European average and lagging behind the leaders. For example, Sweden invested 3.4 percent of GDP last year, Israel even invested almost five percent of GDP. “If we want to continue to be a subcontracting economy, support is probably sufficient. If we aspire higher, if we want to become a rich country with an innovation-based economy, it is certainly not,” says Ilona Müller, Vice-President of the Academy of Sciences.

The government's Research, Development and Innovation Council is also aware of this, with the finance ministry negotiating an increase in money in the budget. In addition, parts of the finances from the National Recovery Plan are also involved. “Exceptional resources of CZK 12.5 billion should be used for science and research from the European Union in 2022—2026,” said Pavel Baran, First Vice-President of the Council. The goal is to get to 2.5 percent of GDP in 2025.

Better than the state is building firms to innovate, their money spent on development has doubled since 2011. In the Czech Republic, however, there is a lack of risk investments and support for innovation in the early stages. “There is a lack of a culture of small investors who send a start-up hundred or three hundred thousand crowns. Investment culture is in its infancy. Unfortunately a lot of people go abroad without having to. The state must realize this and try to keep smart people with ideas,” says Jan Svoboda, co-founder of Prime Fund, which focuses on investments in innovation.

Low efficiency of money issued

The analyses of the Research Council show that the Czech Republic has few patents as well as cutting-edge projects — so-called excellence. International cooperation is lacking, education is obsolete. There aren't many women in research, their potential lies fallow. “The problem is the insufficient cooperation of the academic environment with companies. I attribute this to the weak effort of communication towards companies and the fact that we have few cases of successful cooperation. I also see weaknesses in the fact that companies often do not know about the support programs, the programs are bureaucratically demanding and often only for specific and rather manufacturing companies,” says Lukáš Sedláček, founder of the dynamic learning platform for innovation ELAI.

Lack of experts is also a problem, and inefficient management of human resources is common in academia. Few companies have so far focused on higher added value domestically. However, this is changing: among the investments negotiated through CzechInvest last year, those with higher added value accounted for two-thirds.

Starting this year, the promotion of development and innovation can gain new momentum, thanks to a strategic plan for the coming years. The state wants to focus more on higher added value and on cutting red tape, raising awareness of patents. He wants to motivate Czech experts not to go abroad. More women are to be attracted by the opportunity to pass on and take over the project again because of pregnancy or parental leave and the deductibility of childcare costs. According to Academician Müller, the state should also focus on innovation elsewhere than in industry. “Wealthier countries make up a significant portion of their GDP through services. It is therefore possible that if we also become a more innovative and richer country, non-technological innovations will play a greater role,” says Ilona Müller.

Pandemic as an accelerator

Among other things, the Technological Incubation project, which will be launched by CzechInvest this year, is heading towards the planned objectives. The agency will support more than 300 start-ups. The new innovation centre Brain 4 Industry in Dolní Břežany also has great potential. It will focus on the digitization of SMEs and the use of artificial intelligence in manufacturing, making it easier for companies to develop products.

Technological innovation has been affected by the pandemic in recent months. Surveys by the Association of Small and Medium-Sized Businesses and the National Center of Industry showed that nearly half of firms have cut back on investment in innovation, averaging around 50 percent. According to Lukáš Sedláček, the crisis had a negative impact on start-ups and companies that had to limit or stop their activities. “If we do not provide them with assistance, unlike abroad, then Czech projects, even the most promising ones, are likely to go bankrupt, clear the field and we will lose significant potential future income and further development of the Czech economy and society,” Sedlacek notes.

The state did not skimp on investment in innovation. The only major research project for which money is being sought so far is a planned virology centre. “The leadership of the Academy of Sciences has been discussing this issue with government officials for several months. According to the latest information, a variant of implementation is being considered at the Institute of Organic Chemistry and Biochemistry of the Academy of Sciences,” says Pavel Baran from the Government Research Council.

The pandemic has quickly kick-started innovative activities that can be used to combat it. As a result, several protective masks and shields are required. The biggest success was the freely distributed 3D printing shield model by Josef Průši from Prusa Research, which has been produced by millions worldwide. The power of Czech technologies has also been shown in nanotextiles. Two Czech companies — SPUR and Pardam Nano4Fibers have developed their own materials, as well as masks and respirators from them.

Other innovations arising from COVID include ultra-sensitive PCR tests and saliva tests from Diana Biotechnologies, a test to detect the virus by sight due to color change from the CEITEC center of Masaryk University, a chip for the detection of covid from the collaboration of the University of Pardubice and IQ Structures, or a self-sampling smear set from the Academy of Sciences and Riocath. A lung ventilator or a sterilizing air purifier from CTU also have potential.

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