Research and Technology Development (RTD) and Technology Transfer (TT) in the Czech Republic (CZ) are discussed, based on a comparison with the previous RTD and TT situation in Czechoslovakia prior to 1990 and on expectations regarding the role of the Czech Republic in global competional environmental.

The RTD environment comprising strategies, resources and results has significantly changed in the new economic situation of CZ. It moves from financial accountability toward performance accountability, from wasting resources to their effective use and toward competitive results. Still, measured on a global scale, RTD and TT in CZ requires essential improvements.

Strategies provide the main frame from which the conditions needed to achieve the expectations will later be derived.

The national RTD strategy was formulated for the first time by the Czech government in 2000 (Government Resolution No.16 of 05.01.2000). In spite of being issued so late, it points in the right direction. It is future oriented, stressing global competitiveness. The main goals are directed to an improvement in the RTD performance and effectivity and TT availability. Some supporting measures have been issued. Universities have been transformed from governmental organizations to public ones (high autonomy and high responsibility) and a new RTD law is under preparation. This governmental approach tries to steer RTD orientation by providing higher funds for priorities oriented research (in 1998 priority non-oriented research spendings, OECD1100, have reached 37.0% (3,111 mioCZK) of total government supported RTD).

Resources consisting of the organization and its management, brainpower and financial funds are a prerequisite for achievement of strategy determined RTD goals.

The Czech RTD structure is very loose and characterized by a high number of parties and a low coordination level. Attempts to improve this situation, which does not change with political changes in CZ, are based on the above Government Resolution. The most important is to achieve a highest possible coordination level leading to fast, effective and high quality solution of RTD priority projects. The main problem is non-coordinated and parallel existence of RTD’s at universities (HE) and governmental research institutes (CAS) (in the field of natural sciences there are 19 HE and 27 CAS institutes, 11 HE and 3 CAS in the medical field, 30 HE and 9 CAS in technology) and disappearing of TT oriented industrial RTD institutions.

In CZ, 24106 people (FTE) work in RTD and it coresponds to 0.21% of the population. They are affiliated to HE (19.6%), GOV (35.6%) and corporations (44.7%). Further there are 200,000 university students. Problems are related to a high proportion of GOV (in EU 14.8%), aged people of RTD and a low interest in natural sciences and technology by students. There is a serious problem for HE and GOV research people to get used to scheduled solution of projects, changing subjects and temporary employment.

In contrary to the CZ political situation, the CZ economic situation coresponds to a government driven economy (46.2%). Thus there is a very slow increase in the tax income and consequently (because of high mandatory spendings) a very narrow space for optional spendings, including RTD. Governmental RTD spendings have been 0.45%GNP in 1999 and targeted 0.6%GNP for year 2000 has not been achieved. RTD funds are split into regular contributional part for RTD organizations and grants for evaluated and selected research projects (in year 2000 total 11,641 mioCZK, for grants 4,750 mioCZK from above). Table 1 gives development of GERD in CZ since 1996. It shows continuous increase of GERD reaching doubled financial amount in 2001 compared to 1996 and should rise to about 2% of total governmental expenses in FY 2002.

RTD output measures depends on the stand point of the evaluator. For evaluation of national RTD performance, its reflection in national economic performance (export, hi-tech products, patents licencing) could be discussed and could show level of global competitiveness.

CZ economy is very strongly export dependent (46,3%) and shows a very passive payment bilance ( passive payment bilance on goods is about 10% of GDP already for the fifth consecutive year). This is caused by negligible portion of exported hi-tech products (OECD group 500), which are actually not produced in CZ and forms a high portion of import (53,2%). This situation demonstrates either a missing TT link to RTD, or not goal oriented RTD or both.

Hi-tech products, defined by means of percentage of RTD spendings, is causally related to TT. Hi-tech products, except SW for information technologies (IT) do not exist. Biotechnologies, second most interesting field within high-tech products, stays out of CZ RTD interest.

Patents and their licencing represent an optimal form of exploitation of innovation. They are fund source oriented and demonstrate national technique and technological environment. The number of domestic patent pendings is continuously decreasing in CZ since 1993. In the year 2000 there were 556 patent applications from CZ citizens registered, while there were 4,382 registrations from foreigners. Therefore, in CZ is head density only 5 patents per 100,000 citizens (15 times fewer than in Germany and/or Finland) and this output efficiency, related to RTD employed people, is about 2.5% only.

It could be summarised that CZ started too late to pay attention to RTD and TT role in the national priority scheme. CZ spended tremendous amount of 96,236 mioCZK over the last 5 years (this cummulative amount is about 15% of state budget of FY 2000) for goal non-oriented RTD. In the same time period, due to the unsufficient export, passive payment bilance peak up to cummulative 482,227 mioCZK, which is about 73% of state budget of FY 2000. There have not been developed hi-tech products, or domestic production facilities, the number of patent applications is steadily decreasing and is lowest among all the EU candidate countries. It could be concluded that extensive state support of RTD in CZ does not lead to achievement of global competitiveness, which is essential for a country strongly dependent on export like CZ.

Strategic management of goal oriented RTD funds will be of essential importance in the coming years. Measures required for management of this situation have been partly set.