Czech Republic

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fDi Editor | 05/01/2005 12:00 am

T he Czech Republic is one of the most successful transition economies in attracting foreign direct investment. The introduction of investment incentives in 1998 has stimulated a massive inflow of FDI into both greenfield and brownfield projects and since 1993 nearly E40bn in FDI has been recorded. More than 99,000 Czech firms across all sectors are now supported by foreign capital.

The Czech Republic is strategically located at the centre of Europe, with good access to established western and emerging eastern markets. The highway network, already the densest in central and eastern Europe, is planned to double in size by 2007 and several rail modernisations are under way.

In addition to a high quality infrastructure, investors can benefit from a skilled and productive workforce; a large percentage of students graduate in scientific and technical fields, feeding a large research and development sector at a comparatively low cost. Many multinationals, including Panasonic, Honeywell, Motorola and Mercedes-Benz, run R&D or design centres in the republic.

Both incoming and established investors benefit from a range of incentives offered by the government. Increasingly, investors are not just locating their production facilities but are also setting up “knowledge-intensive” activities in the country.

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