Regions for economic change Innovating through EU Regional

Regions for economic change Innovating through EU Regional Policy Brussels, 12 – 13 June 2006 Experience with the Cluster programme in the Czech Republic - best practice and future prospects Luboš Lukasík Director Company Competitiveness Division Czech. Invest

Czech. Invest Company Competitiveness Division Dept’s Ministry of Industry and Trade CR Domestic Marketing Regional Co-operation Company Internal Services Division Competitiveness Division Silicon Valley Chicago Investment and Applied Research Division London Brussels Paris Cologne Munich Management of Development Prague Yokohama Competitiveness Hong Kong Support of Development Investment and business development agency Business Environment Development

Czech. Invest’s Mission ╌ To support foreign direct investment ╌ To develop local companies ╌ To improve the business environment Operational Programme Industry and Enterprise (ERDF 2004 - 2006) Related programmes: -- Prosperity -- Real Estate -- Training Centres -- Clusters

Building clusters in the Czech Republic Completed In process ╌ Training regional authorities, universities and firms 2004 ╌ Active collaboration with facilitators ╌ Promotion of the concept at different levels (conferences, PR) ╌ Adapt programme to company needs (eligible costs) ╌ Study on legal forms of the cluster and organizational and communication structure ╌ International co-operation ╌ National Cluster Strategy – adopted by the Government 06/2005 ╌ National Cluster Study - the 1 st part completed ╌ Establishment and development of clusters ╌ Certification of cluster facilitators and managers 2006

Cluster support programme ╌ Mapping (1 st phase) - Subsidy for facilitators - Organised by regions or universities and supported by companies - 75 % of eligible costs, max. € 35, 000 - Eligible costs: All necessary costs for mapping ╌ Cluster management (2 nd phase) - max. € 1. 6 million with decreasing tendency: - 1 st year 75 % => 2 nd year 65 % => 3 rd year 55 % of eligible costs - Eligible costs: All necessary related to cluster management - Mutual projects supported via other programmes, not only Operational Programme Industry and Enterprise

Map of clusters in the Czech Republic Established clusters Projects underway Technical textiles Automotive Renewable energy tech. Glass Imitation jewellery Engineering Bioplastics Musical instruments Wood processing Tableware Initial activities Packaging tech. Stone processing Technical plastics Polygraphic Pharmaceuticals- Electronics Tool production Wood processing medical tech. Information tech. Brewing Nanotechnology Renewable energy Chemical industry (hydrogen) technology Automotive Engineering Construction Automotive Nanotechnology ICT Optics Mechatronics Bridge construction tech. Water treatment tech. Renewable energy tech. Waste treatment tech. Construction Welding Aircraft Eco-labelling Wood processing Wine-making Brewing Furniture Engineering Wood processing Textiles Biotechnology Bioinformatics Microelectronics Plastics Shoemaking Furniture June 2006: 28 projects underway, 1 project in 2 nd phase; approved allocation € 2. 35 million

Best practice: OMNIPACK I The OMNIPACK Cluster in the Hradec Králové region -- Support and development of packaging industry -- Promotion of the region as a packaging centre of excellence -- 22 founding firms + 4 universities -- Cluster members production: 44 % plastic, 21 % paper, 21 % wooden, 14 % metal packaging

Best practice: OMNIPACK II -- Duration of project: March 2006 - July 2008 -- 88 projects in 8 fields of activity through 4 service centres -- Financing (subsidy + self-financing): NON-ELIGIBLE COSTS (VAT) € 0. 35 million TOTAL PROJECT COSTS € 2. 6 million ELIGIBLE COSTS € 2. 25 million UNSUBSIDISED COSTS € 0. 65 million SUBSIDISED COSTS € 1. 6 million -- LUMP SUM FEE (operational costs) -- OPERATIONAL FEE (internal project costs) -- PROJECT FEE (external project costs) -- SERVICE CENTRES FEE (infrastructure services costs)

Best practice: OMNIPACK III Common projects: -- Innovation, development, research (testing and development centre, innovation system management) -- Information technology development (information system, marketing and business portal, central purchasing system) -- Human resource development (knowledge management system, e-learning, training) -- Waste recycling system (“perpetum” system) -- Marketing, export support, consultancy, etc.

Innovations & SF 2007 -13 Operational Programmes: -- Enterprise and Innovations (support for new firms, company growth, innovations, efficient energy, co-operation, development of HR, infrastructure, services, new trends…) -- Research and Development for Innovations (R&D capacity building, private public cooperation for innovative R&D, strengthening educational capacities in universities…) -- Education for Competitiveness (modernisation of basic education, modernisation of higher education and R&D…)

Thank you for your attention! lubos. lukasik@czechinvest. org www. czechinvest. org Czech. Invest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic © Copyright, Czech. Invest 2006. All rights reserved