Technical Innovations in the Czech Republic

Information connection contributes to the market globalization in the world, including the Czech Republic. It leads to continual economic growth and increasing competition, in which is possible to survive only by placing emphasis on the rising value added of the products and services without negative impacts on the environment. The economic growth is possible to reach only by permanent improvements of the existing products, technological processes and services.

This publication contains information about innovation potential of the firms undertaking in the Czech republic. Methodology and data processing are based on the Oslo manual (published by OECD, Paris 1992, 2nd revised ed.), Council Regulation (EC) No 94/78/EC of 24 January 1994, and is fully compatible with methodology and recommendations of EUROSTAT (Statistical office of the European Community). Subjects of the survey are goals, stimuli, constraints, costs and effect connected with the development of new or significantly improved products (goods or services) or technological processes reaching the criteria of innovation and with their launching on the market.

Coverage

To the data collection have been used harmonized questionnaire of the member states for the third Community innovation survey (CIS 3). On the basis of CIS 3 we have launched the innovation survey in the Czech republic for the first time. The reference years are 2002-2003.

We used the sample survey and the innovation questionnaires TI 2003 were addressed to of about 4678 reporting units with more than 10 employees and from the selected manufacturing and service (financial or not financial) sectors, that according to their prevailing activity belong to the NACE rev.1:

10-14 Mining and quarrying

Manufacturing (15-37)

15-16 Food, beverages and tobacco

17-19 Textile and leather

20-22 Wood, pulp and printing

23-24 Coke and chemicals

25-26 Rubber and other non-metallic

27-28 Basic and fabricated metals

29 Machinery and equipment

30-33 Electrical and optical equipment

34-35 Transport equipment NEC

36-37 Manufacturing NEC and recycling

40-41 Electricity, gas and water supply

Services (51,60-67,72-73,74.2,74.3)

51 Wholesale trade

60-64 Transport, storage and communication

65-67 Financial intermediation

72 Computer and related activities

73 Research and development

74.2 Architectural and engineering activities

74.3 Technical testing and analysis

Reporting duty of the units is in the Czech republic under the law.

Sample of the responding units was extracted from Czech Business Register by combination of census and stratified sampling. Their respondent duty is under the law.

Data published here were obtained on the basis of 81% response rate; final results from the sample were calculated on the basic population using mathematical-statistical methods.

Above mentioned data were published broken down by NACE rev.1 and three size classes according to the number of employees

These size classes are:

-small enterprises with 10-49 employees,

-medium enterprises with 50-249 employees,

-large enterprises with more than 250 employees.

Innovation concept, basic definitions

Technological development and innovation are crucial factors of production and economic growth and employment. These days, all people and economic subjects must adapt to the external pressure of the turbulent environment, react on the challenges and eliminate threats. The way to the success represents innovations.

Innovation can of course occur in any sector of the economy, but we use guidelines from the Oslo manual published by OECD for measurement scientific and technological innovation and therefore we focus on the business enterprise sector. We deal with changes, which take place at the level of the individual firm. The minimum entry is that the product or process should be new (or significantly improved) to the firm; it does not have to be new to the world. Technological product or process innovations (TPP innovations) relating to primary and secondary activities are included, and so is process innovation in ancillary activities. TPP innovations can be broken down between product and process, and by the degree of novelty of the change introduced in each case.

Innovation, as it is defined here, is a new or technologically improved product (good or service) introduced to the market or the introduction within said enterprise of a new or significantly improved process. The innovation is based on the results of new technological developments, new combinations of existing technology or utilization of other knowledge acquired by your enterprise.

Product innovation (good or service)

Product innovation is a good or service, which is either new or significantly improved with respect to its fundamental characteristics, technical specifications, incorporated software or other immaterial components, intended uses, or user friendliness. The innovation should be new to the said enterprise; it has not necessarily to be new to the market. It does not matter whether the innovation was developed by the said enterprise or by another enterprise. Changes of a solely aesthetically nature, and purely selling of innovation wholly produced and developed by other enterprises, shall not be included.

Process innovation

Process innovation includes new or significantly improved production technology, new or significantly improved methods of supplying services and of delivering products. The outcome should be significant with respect to the level of output, quality of products (goods/services) or costs of production and distribution. The innovation should be new to the said enterprise; the enterprise has not necessarily to be the first to introduce this process. It does not matter whether the innovation was developed by the said enterprise or by another enterprise. Purely organizational or managerial changes shall not be included.

Implementation of a quality standard such as ISO 9001 is not a TPP innovation unless it results in a significant improvement in the production or delivery of goods or services.

Innovating firms comprise:

firms which were in existence at the beginning of the period under review and which have implemented products or processes during the period which are technologically new (or improved) for the said firm;

firms which have come into existence during the period under review and which:

at their founding implemented products or processes which are technologically new (or improved) for the operating market of the firm;

after their founding implemented products or processes later during the period which are technologically new (or improved) for the said firm.