Innovation seen as key to restoring Czech competitiveness

The Czech economy is by some measures the most competitive in Central and Eastern Europe. But productivity has not kept pace with the rapid wage growth of recent years. And without greater state support for applied research and to encourage innovation, the Ministry of Industry warns, long-term competitiveness – already now “frozen” – could plummet. “Although we have an excellent position in terms of macroeconomic stability, we need to improve our innovative capabilities,” says minister Marta Nováková.