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ICT INVESTMENTS IN THE CZECH REPUBLIC
Matouš Kostlivý – Sector Specialist for ICT
Discover ICTPrague, 25th September 2015
CzechInvest
mission
CZECHINVESTInvestment & Business Development Agency
to support foreign direct investment
to develop local companies
to implement business-development programs
to improve business environment
Ministry of Industry and Trade
CzechInvestInvestment and Business Development Agency
Source: CzechInvest, 2015
Our Services to Potential Investors
Collect/provide information Identify sites and buildingsFind potential suppliers/acquisition partners Liaise with government bodiesHandle investment incentivesEnable access to structural EU fundsDevelopment of clustersRegeneration of brownfieldsProvide aftercare services
Our services are free of charge
Source: CzechInvest, 2015
CzechInvest Worldwide
USA – East Coast
USA – West Coast
UK & Ireland
Germany
Scandinavia
Japan
China – [email protected]
South Korea
Zdroj: CzechInvest, 2015
Cooperation with AFI
AFI = Association for Foreign Investment
Source: AFI, 2014
The Czech RepublicGeneral Overview
Population (2015) 10.5 million
Labour force (2015) 5.3 million
Unemployment (Actual for: June 2015) 6.2%
GDP growth (2015*) 3,8%
Annual inflation (July 2015) 0.5%
Average monthly
wage (March 2015) € 997
$ 1, 054
Export destinations (2014) Germany (32.0%)
Slovak Rep. (8.3%)
Poland (5.9%)
Czech Republic: Basic Data
Source: Czech Statistical Office 2015, Czech Ministry of Finance 2015, IMF 2015
* forecast
Connection to the Neighboring Countries
Source: Road and Motorway Directorate of the Czech Republic, 2012, Route planner ViaMichelin, 2012
Motorways and expressways
Motorways and expressways - outlook
Class I.
180 km
150 km
166 km200 km
110 km
70 km50 km
190 km
Investment Risk Rating
COUNTRYSTANDARD AND POOR
´SMOODY´S FITCH
Czech Republic AA- A1 A+
Slovakia A A2 A+
Poland A- A2 A-
Bulgaria BBB Baa2 BBB-
Hungary BB Ba1 BB+
Romania BB+ Baa3 BBB-
Source: Czech National Bank, 2015
Note: Foreign Currency Long-Term Sovereign Debt Ratings, 28.1.2015
Financial SupportInvestment Incentives
Supported Activities
-- manufacturing industry production facilities
-- technology centres R&D centres
-- business support services centres shared service centres IT/SW development centres high-tech repair centres data centres call centres
Source: Act on Investment Incentives No. 72/2000 Coll.
Conditions
-- 2-years wage costs of employees on newly created positions
-- or long-term assets, of which at least half must be new machinery
-- no work may be started on the Project before submission of the application to CzechInvest
-- 20 new jobs and international reach
-- conditions must be fulfilled within three years from the issuance of the Decision to grant investment incentives
-- new jobs must be maintained for a period of 5 yearsSource: Act on Investment Incentives No. 72/2000 Coll.
-- 25 % of eligible costs (Prague 0%)
Maximum ceiling of state aid
Eligible costs
Eligible criteria for IT/SW development centres
Types of Incentives for ICT projects
Up to 25% Ceiling of State Aid
-- corporate income tax relief for up to 10 years
job creation grants (EUR 3 700 – 11 100, depending on the region)
Above the Ceiling of State Aid
-- training and retraining grants (25% - 50%, depending on the region)
Source: Act on Investment Incentives No. 72/2000 Coll.
Job creation, training and retraining grants
Financial SupportEU Structural Funds
ICT and Shared Services – Call I
Schedule
-- application stage I: June 2015 – August 2015-- application stage II: September 2015 – November 2015
Supported activities
-- creating new IS/ICT solutions-- establishing and operation shared service centres-- building and upgrading data centres
-
Aid ceiling
-- from CZK 1 million to CZK 200 million per project-- 25% / 35% / 45% of elegible costs
Source: CzechInvest, 2015
ICT and Shared Services – Call I
Key conditions
-- implementation of the project in the CR outside of Prague-- project has not started before filing the application-- minimum investment CZK 0.3 / 0.5 / 1 million-- minimum jobs created 2 / 3 / 4
Eligible costs
-- personnel costs-- rent-- expert services and hardware and software (de minimis rule)
Source: CzechInvest, 2015
ICT Sector
Major ICT Projects in the Czech Republic
ICT Universities - programming languages
Source: CzechInvest and universities, 2014
University/Faculty Programming languages
Czech Technical University in PragueC, C++, C#, G, JAVA, Python, Scala, Ruby, PHP, Smalltalk, SQL,
Android, iOS, Lisp, Prolog, HTML Faculty of Information TechnologyFaculty of Electrical Engineering
Charles University in Prague C, C++, C#, Java, Fortran, Matlab, Octave, Scilab, LabView, Prolog, Haskell, Lisp/Scheme, SQL and IDL, Groovy, Clojure, Scala, Ruby, Go, Erlang, Ada, Ruby, JavaScript, PHP, CoffeScript, Lua, Algol,
Simula, Pascal, Smalltalk and PerlFaculty of Physics and Mathematics
University of Economics Prague
JAVA, PHP, C#Faculty of Informatics and Statistics
Masaryk University
JAVA, C/C++, C#/.NET, Python, RubyFaculty of Informatics
Brno University of TechnologyC, C++, JAVA, C#, .NET, Python, Goedel, Haskell, HTML/XHTML,
LISP, PERL, PHP, PROLOG, SQL, TKSL, VHDLFaculty of Information Technology
HRADEC KRALOVEStudents: 1,832Graduates: 283
MORAVIA-SILESIAStudents: 4,535Graduates: 932
OLOMOUC REGIONStudents: 516Graduates: 52
PARDUBICE REGIONStudents: 1,656Graduates: 270
LIBEREC REGIONStudents: 867Graduates: 182
USTI NAD LABEMStudents: 369Graduates: 39
ZLIN REGIONStudents: 1,735Graduates: 473
SOUTH MORAVIAStudents: 9,725Graduates: 2,363
VYSOCINA REGIONStudents: 296Graduates: 39
SOUTH BOHEMIAStudents: 1,502Graduates: 234
PLZEN REGIONStudents: 2,619Graduates: 560
Source: Ministry of Education, Youth and Sport, 2014
PRAGUE
USTI NAD LABEM
PLZEN
SOUTH MORAVIA
ZLIN
OLOMOUC
PARDUBICE
HRADEC KRALOVE
VYSOCINA
LIBEREC
MORAVIA-SILESIA
SOUTH BOHEMIA
PRAGUE REGIONStudents: 12,071Graduates: 2,541
KARLOVY VARY
CZECH REPUBLICStudents: 37,752Graduates: 7,990
ICT University Students & Graduates in Regions
*Note: according to the selected educational fields - source CzechInvest
Average gross monthly wagesSW development positions - Prague, Brno
Job Position / RegionPrague (EUR) Brno (EUR)
min/max min/max
SW Development Manager/Director 3 620 5 430 2 890 4 340
SW Architect 2 530 3 620 2 170 3 260
SW Development Team Leader (C/C++, Java, C#) 2 530 3 260 2 170 2 890
SW Developer (work experience more than 5 years) 1 810 3 260 1 990 2 890
SW Developer (3-5 years of experience) 1 450 2 530 1 630 2 170
SW Developer (1-3 years of experience) 1 080 1 810 1 080 1 630
Web/PHP/JavaScript Developer 1 260 1 810 1 010 1 630
SW Test Engineer 1 080 1 630 940 1 630
Business Aanalyst (more than 3 years of experience) 2 170 3 260 1 630 2 530
Average Exchange Rate 1 EUR = 27.62 CZK (average for Q4 2014, Czech National Bank 2014)Source: Grafton, Salary Survey, 2014
Current trends: Czech ICT Sector
Cloud Computing
Data Mining, Image/Voice Recognition
Mobile Technologies
Smart Cities
Industry 4.0
M2M (Machine to Machine) Communication
Data Centre Infrastructure
Cyber Security
Game Development
Source: CzechInvest, 2015
Red Hat
Leading provider of open-source software solutions
In Brno since 2004
With 750 employees, the Brno centre is Red Hat’s largest engineering facility in the world
“Seeing strong potential for growth in Brno, Czech Republic, Red Hat established its core engineering facility here. It has become the company’s largest global engineering entity employing more than 500 people in software development, quality engineering, customer support, research, documentation and program management. For employees, Red Hat offers a unique opportunity to work on global open-source projects and provides education and other benefits which make the company attractive for many applicants in the labour market, including students seeking work experience.”
Seznam.cz
The Czech Republic is the only country in the world where the Latin alphabet is used and where Google is not the number one on the Internet. There are only four countries in the world, where Google does not have the monopoly on Internet services. In each of these four countries there is a strong local Internet company. South Korea has its Naver, Russia its Yandex, China its Baidu and the Czech Republic has its Seznam.cz.
1996: Seznam.cz was founded
2000: Seznam.cz had a 53% share of the Czech Internet
2004: the revenues of Seznam.cz grew to 500 million Czech crowns and the number of users using Seznam.cz services grew to 3 million a month
2010: 5,000,000 people (almost the entire Czech Internet population) were visiting the Seznam.cz homepage at least once a month
Seznam.cz is one of the few prospering Czech Media Houses with yearly revenues at around 2.8 billion Czech Crowns (108 million EUR), covering with its services almost 90% of Czech internet population
IT4Innovations overview
Research institute at the VŠB - Technical University of Ostrava
National HPC e-infrastructure, operates nationally unique state-of-the-art supercomputing resources
Center conducts research mainly in the research areas of high performance computing and embedded systems.
Center provides state-of-the-art technologies and services in those areas.
40th most powerful supercomputer in the world
Partners are VSB – Technical University of Ostrava,
University of Ostrava, Brno University of Technology,
Silesian University in Opava and Institute of Geonics
Academy of Science of the Czech Republic
Source: CzechInvest, IT4Innovations, 2014
Cooperation with IT4Innovatios
IT4Innovations supercomputer ready to process topographical data for a new 3D maps
Researchers apply computationally intensive algorithms to create 3D models of towns and cities based on two-dimensional aerial photographs
Images covering nearly 8000 km2 will be processed in about 6 months, a surface area that corresponds to 10% of the Czech Republic.
http://beta.mapy.cz/
Avast Software, maker of the most trusted PC and mobile security in the world, protects more than 230 million people and businesses with its security applications. Avast is a pioneer in the computer security business.
1988: Pavel Baudiš, then a researcher at Prague's Mathematical Machines Research Institute, encounters a sample of the Vienna Virus and, intrigued by it, writes a program able to remove it.
1991: Founders Pavel Baudiš and Eduard Kučera, transform ALWIL Software from a 'cooperative' into a joint partnership 'company'.
1995: Ondřej Vlček (COO) writes the first antivirus program for Windows 95.
1997: ALWIL Software provides the Avast antivirus engine to McAfee
2013: On its 25th anniversary, Avast antivirus claims an industry record by protecting over 200 million PCs, Macs, and Android devices worldwide – and is ranked the most-downloaded product on several major global software portals.Avast has over 500 professionals headquartered in Prague.
Avast Software
Why the Czech Republic?
