The state budget is facing extraordinary deficits, and the government has decided to economise. With the exception of two priorities: investments in transport, and research and development (R&D). But how will that second priority look in practice? Its budget, still underfinanced, will not grow by CZK 2 billion a year as had been promised, but will remain at this year’s level of CZK 24.8 billion until 2012. Moreover, such a funding freezing means a decline in real income, not just because of inflation but also because of the growing need to co-finance EU projects and because of other mandatory expenditures.
Unfortunately, the R&D budget abandons the ambition to radically restructure spending. In private companies, by contrast, a crisis budget is a specific task. Businesses reduce expenditures to the lowest possible level and only focus on investments that can get the company out of trouble.
It is research, innovation and the new products derived from those that offer one of the most efficient tools to fight the crisis. They bring new jobs, tie other activities to them and improve competitiveness.
Compared with how vigorously, for instance, China, the Unites States and some European Union countries are supporting R&D during the current global crisis, the Czech government’s “priority” looks deficient. The US announced an increase in support for research and development from the current 2.6% to over 3% of GDP. China has intensified its efforts to lure back students and professors from workplaces around the world by offering them optimal conditions.
Czech research is now in a very difficult situation. However, instead of complaining about a possible liquidation of science and other traditional departments, it would be better to think about which R&D spending would bring the fastest and best economic results. What is more important than raising the budget is the distribution of finance. That should change promptly in a way that would reinforce co-operation with the private sector.
I regard it as a positive signal that new Prime Minister Jan Fischer, like his predecessor Mirek Topolánek, has demonstrated his interest in being at the helm of the government’s Research and Development Council. Also correct is the effort to support successful scientists who come up with real results in the form of patents for example. However, this good news should be also backed by reforms, for instance by making allowing tax deductible expenditures on co-operation with universities. Accelerating the creation of the Technological Agency would be completely logical as well.
Recession is exactly the period when corporate research should be reinforced for the economy to be able to better face the problems that have arisen. Companies are ready to invest in this. However, at a time of limited budgets, the aforementioned government initiative would be a welcome incentive for them to implement new projects in the Czech Republic.
The author is the vice-president of the Confederation of Industry of the Czech Republic and a member of the government’s Research and Development Council.
