Almost third of the companies in the Czech Republic invest more than 10% of their revenue into R&D
Prague, 8 November 2018 – Investments of Czech companies into research and development (R&D) grow. Almost one-third (31%) spent more than 10% of their revenues in R&D last year. This is one percentage point more than in the previous year. Only 2% of the companies did not invest at all (11% in 2016). These are the findings of the annual survey of Deloitte and the Technology Agency of the Czech Republic entitled Tax and Subsidy Support for R&D Activities.
When deciding on R&D investments, the companies consider the availability of qualified and experienced workers (66%) and the possibility of using more types of aids, i.e. a combination of subsidies, investment incentives, tax deductions and other financial instruments (58%) as the most important. As opposed to the previous results, the stability and transparency of the regulatory environment is in the third place (54%).
“The survey showed that businesses greatly appreciate the availability of more types of R&D support and, as is evident from this year’s survey, uncertainty has grown over the years. More than half of the companies see the biggest problem in the uncertain assessment of subsidies or tax deductions by tax authorities and other control bodies. This conclusion is even more striking this year than in previous years,” says Luděk Hanáček, Partner, Tax, Deloitte.
“Czech businesses are increasingly more aware of the importance of protecting intellectual property – patents, industrial or utility models. The survey also shows that 83% of the interviewed companies cooperate with other entities, mostly with universities or research institutions, mainly because of the technical synergy. This cooperation is possible, but not solely, thanks to the subsidy programs,” adds Martin Bunček, Director, Technology Agency of the Czech Republic.