Productivity and Innovation in the Czech Republic : A Firm-Level Perspective
Convergence of productivity of Czech firms towards peer countries is slow, especially for smaller firms. Czech labor productivity was 68.3 of that in Germany and the productivity gap is in particular large for micro, small and medium enterprises (M...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/157911576708421803/Background-Note-Productivity-and-Innovation-in-the-Czech-Republic-A-Firm-Level-Perspective http://hdl.handle.net/10986/33084 |
| Summary: | Convergence of productivity of Czech
firms towards peer countries is slow, especially for smaller
firms. Czech labor productivity was 68.3 of that in Germany
and the productivity gap is in particular large for micro,
small and medium enterprises (MSMEs). MSMEs (defined as
having less than 250 employees) form the backbone of the
Czech economy, accounting for 67.3percent of total
employment and 55.2 percent of value added (at factor cost)
but face weak innovation demand and an unfavorable position
in global value chains. The Czech Ministry of Industry and
Trade (MIT) is developing a new Small and Medium Enterprise
(SME) Strategy and Implementation Plan for the period
2021-202no7 to boost firm productivity and competitiveness
of domestic SMEs. MIT has requested support from the
European Commission under Regulation (EU) 2017/825 on the
establishment of the Structural Reform Support Programme
("SRSP Regulation"). The request has been analyzed
by the European Commission in accordance with the criteria
and principles referred to in Article 7(2) of the SRSP
Regulation, following which the European Commission has
agreed to provide technical support to the Czech Republic,
together with the World Bank, to conduct analytical work on
the status of SMEs. |
|---|