The Project Smart Accelerator of the Region Reg. No. CZ.02.2.69/0.0/0.0/15_004/0000367

Regional Annex National Research and Innovation Strategy for Smart Specialization of the (National RIS3 Strategy) for the

Update as of 25 June, 2018

Abbreviated Name: The RIS3 Strategy for the Olomouc Region

2

3 Content

The Analytical Part 9 1. Position of the Region 9 GDP 9 Unemployment 10 Employment and Wages 11 Science and Research 12 Patents 13 Organization Statistics 14 2. Participation of the Region’s Companies in the Selected Subsidy Programmes 15 3. Public Administration and Its Role in the Region’s Innovation System 18 Overview of Support Schemes (Subsidy Programmes) of the Olomouc Region Implemented in Recent Years Connected to the Implementation of the Region’s Innovation System 19 Subsidy Programmes Opened by the Olomouc Region: 19 4. Overview of Relevant Conceptions, Analyses and Studies in the Olomouc Region 20 Survey of the Environment for Innovative Businesses in the Olomouc Region 20 Regional Innovation Strategy for the Olomouc Region 20 Olomouc Region Territorial Unit Development Strategy 2015 – 2020 21 Olomouc Business Environment Survey 2016 22 Biomedicine and Life-Science Institutions Pilot Benchmark Study for the Olomouc Region and the Surrounding Localities 22

4 ITI Strategy of Olomouc Agglomeration 23 Education Development Regional Action Plan for the Olomouc Region (KAP) for the Period 2016-2018 24 Community-Led Local Development Strategy (SCLLD) in the Olomouc Region 25 Cultural and Creative Industries in the Olomouc Region 25 Cluster Potential of the Olomouc Region Mapping and Analysis Study 25 5. Main Actors in the Innovation System 26 Universities and Research Centres in Olomouc 26 Research Centres 27 Centre of the Region Haná for Biotechnological and Agricultural Research (CRH) 27 Regional Centre of Advanced Technologies and Materials (RCPTM) 27 Institute of Molecular and Translational Medicine (UMTM) 28 Application Centre BALUO 28 Czech National eHealth Center (NTMC) 28 Moravian Business College o.p.s. (MVŠO) 29 College of Logistics o.p.s. (VŠLG) 30 VSB – Technical University in , Faculty of Mechanical Engineering Šumperk 30 Map of the Application Potential of the Public Research Sector in the Olomouc Region 30 Private Research Companies 32 HYDRAULICS RESEARCH CENTRE Ltd. 32 AGRITEC, Research, Breeding and Services Ltd. 32 Agroresearch Rapotín Ltd. 33

5 Precheza Inc. (formerly the Technological Centre Precheza Inc. and the Czech Technological Centre for Inorganic Pigments Inc.) 33 Other Important Subjects Involved in Research 34 Other Actors in the Innovation System 34 Palacký University Science and Technology Park (VTP UP) 34 Chamber of Commerce of the Olomouc Region 35 The Association OK4Innovation 36 Regional Development Agency for Central z.s.p.o. (RARSM) 37 Confederation of Industry; Regional Representation for the Olomouc Region and the Zlín Region 37 CzechInvest – Olomouc Regional Office 37 The Czech Business and Innovation Agency (API) – Olomouc Regional Office 38 Clusters in the Olomouc Region 38 Czech Nanotechnology Cluster; a cooperative (ČNK) 38 Innovation Cluster Olomouc; a cooperative 39 MedChemBio Cluster 39 Moravian-Silesian Wood Cluster; a civic association (MSDK) 40 Czech Optical Cluster 40 6. SWOT Analysis 42 7. Methodology for Elaboration of the Regional Annex to the National RIS3 Strategy for the Olomouc Region 49 8. Specialization of the Region –RIS3 Domains 50 Machinery and Electrotechnical Industry 50 Optics and High-Precision Mechanics, Optoelectronics 50

6 Industrial Chemistry 51 Pumping and Water Management Technology 51 Biomedicine, Life Science and Health Care 51 Software Development 51 Emerging Fields 52 Advanced Agricultural Technologies for Sustainable Development 52 New Materials and Technologies 52 Proposal Part 53 9. Vision 53 10. Key Change Areas 53 Key Change Area A: Better Availability and Qualification of Workforce for Innovations 54 Key Change Area B: Regional System of Technology Transfer Support 60 Key Change Area C: High-Quality Services and Support for Innovative Companies in Key Areas/Value Chains of the Region 64 11. Implementation Structure in the Olomouc Region 67 Regional Innovation Council (KRI) 67 Executive Function of Implementation of the RIS3 Strategy in the Region 69 Attachment: Data Documents 70 Number of Economic Subjects according to CZ-NACE Classification of Activities (listed in the order of the share of the Olomouc Region in %) 70 Priority CZ-NACE Categories in the Olomouc Region 74 Shares on GDP in 2016 78 Average Registered Number of Employees and Average Gross Monthly Wages in the Second Quarter 20171) 79

7 Working Population Aged 25-64 Years according to the Achieved Education and the Region of Habitual Residence in 2015 81 Structure of Working Population Aged 25-64 Years according to Achieved Education and the Region of Habitual Residence in 2015 82 Proportion of the Unemployed in the Individual Regions of the Czech Republic as of 30 September 2017 in % 83 Economic Subjects Active in Science and Research and their Workplaces in the Regions of the Czech Republic 84 Basic Research and Development Indicators in the Olomouc Region 86

8 The Analytical Part

1. Position of the Region The Olomouc Region is located in the central and northern parts of Moravia and the north-western part of the Czech . For administrative purposes, it is divided into five districts (Jeseník, Olomouc, Prostějov, Přerov, and Šumperk), thirteen administrative districts of municipalities with extended powers, and twenty administrative districts of municipalities with an authorized municipal office. There are 399 municipalities located in the Olomouc Region: 30 of them have the status of a town (three of them, Olomouc, Prostějov and Přerov, are statutory towns); twelve municipalities are market towns. A part of the region is occupied by the military area Libavá. The Olomouc Region and the Zlín Region constitute a higher territorial statistical unit called NUTS II Central Moravia Cohesion Region. As of 31 December, 2016, population of the Olomouc Region equalled 633,925 inhabitants (6.0% of inhabitants of the Czech Republic). As of 31 December, 2015, the total area of the region equalled 5,266.90 km2 (i.e. 6.7% of the total area of the Czech Republic). Concerning the area, the Olomouc Region occupies the eighth place within the Czech Republic, while its population reaches the seventh place. With its number of inhabitants per square kilometre (about 121), the region is close to the average population density of the Czech Republic (133.8 people per 1 km2). Naturally, the density differs within the region, with the lowest population density in the Jeseník district (54.6 people per 1 km2) and the Šumperk district (92.7 people per 1 km2). The majority of people live in the (36.7%), while the lowest number of inhabitants live in the Jeseník district (6.2%). Only 56.4% of inhabitants of the Olomouc Region live in towns, which strengthens the countryside atmosphere of the entire region. Compared to the other regions, the proportion of town inhabitants in the Olomouc Region is the second lowest. Half of the region’s citizens (50.1%) are resident in municipalities of the size up to 5,000 inhabitants, which is an amount significantly higher than the Czech average (38.9%). The average population of a municipality is 1,593 inhabitants. The region’s population has a low proportion of children aged 0–14 years (15.3% of the total population as of 31 December, 2016), and the proportion of inhabitants older than 65 years is increasing (19.3%), which ranks the region the third worst within the Czech Republic in this respect, and the average age of inhabitants is thus increasing as well (42.2 years as of 31 December, 2016). Source: Czech Statistical Office

GDP The value of GDP in the Olomouc Region in 2016 amounted to 219,892 million CZK, which equalled 4.60% of the Czech Republic’s GDP. Compared to other regions, the Olomouc Region thus fell from the ninth to the tenth place. In 2016, the GDP per capita was 346,789 CZK (the amount for the Czech Republic was

9 451,785 CZK). The Olomouc Region reaches 76.76 % of the national level and thus ranks 11th among the regions. While the region’s productivity level is continuously lower than in other regions, since 2013 we may observe a slight improvement: while the GDP per capita in the Olomouc Region used to amount to 299,515 CZK (77.21% or the national value), which placed it as the second last, since 2013 both the total GDP and GDP per capita have been steadily increasing, although at a lower rate than the national value of GDP. In the long run, the region has very low revenue per employee. In 2016, it ranked second last with regard to this indicator, with the value of 2,766,000 CZK amounting only to 67.03% or the national value.

Unemployment In the recent years, there has been significant fluctuation on the Olomouc Region labour market. The year 2009 meant mass dismissals as a result of the world financial crisis. In the 2nd quarter of 2010, the unemployment rate began to decrease considerably, but December 2010 saw its rapid increase and the second peak in the long term was reached in January 2011. In the years 2011-2013, the unemployment rate fluctuated considerably. Many employers concluded fixed-term work contracts with their employees and forced them to register at the Labour Office in the winter period. The year 2014 meant dramatic changes in the unemployment rates: the previous maximum unemployment rate was exceeded already in January, but towards the end of the year, the unemployment rate decreased to the values from the year 2012. In the following years 2015-2016, the year-on-year unemployment rate kept decreasing. The position of the Olomouc Region in comparison to the other regions has improved over the last three years. While at the end of 2013 the Olomouc Region recorded the second highest number of job seekers per vacancy (which was more than twice the national average), one year later it achieved the fourth highest ranking and the number of job seekers per vacancy was 1.5 times higher than the national value. The situation in 2016 was the same as in 2014. As of 31 December, 2016, the number of job seekers in the Olomouc Region per vacancy was 4.2 while the national average was 2.9. The proportion of the unemployed in the Olomouc Region was 5.9% as of 31 December, 2016, which means a year-on-year decrease by 1.1%. Compared to the other regions, the Olomouc Region achieved the fourth worst results at the end of the year 2016, following the Ústí nad Labem Region (7.8%), the Moravian-Silesian Region (7.5%) and the (6.1%). This means a slight improvement in the long term. As of 30 September 2017, the unemployment rate in the Olomouc Region was 4.1%. The district achieving the worst results was Přerov (5.3% - 13th worst in the Czech Republic), followed by the Jeseník district (4.9% - 14th place), Šumperk (4.3% - 20th place), Olomouc (3.8% - 33rd place), and Prostějov (2.7% - 57th place). The highest number of job seekers per vacancy was in the Jeseník district; the lowest was recorded in the Prostějov district. In February 2010, the number of job seekers in the Olomouc Region increased to almost 45 thousand people, which was the record value at that time. The beginning of the year 2012 was better with the number of job seekers lower by almost three thousand compared to the same period of the previous year. In 2013, the unemployment rate was increasing year-on-year: until the end of the year, the increase in the number of job seekers compared to December 2012

10 exceeded three thousand, and thus the highest December unemployment rate since the establishment of regions was reached. The year 2014 brought significant changes in the development of the unemployment rate: the contemporary maximum unemployment rate was exceeded already in January and for the first time in the history the number of the unemployed exceeded 46 thousand people. The mid-2014, however, saw a twist and for the first time since 2012, the year-on-year unemployment rate decreased. The positive trend of decreasing unemployment rate continued even in the course of the year 2015. The lowest number of the unemployed was reached at the end of October (28,596 people). In a year-on-year comparison, the unemployment rate was also decreasing in 2016 – the lowest number of job seekers was again recorded at the end of October (24,333 people), which meant a year-on-year decrease by 4,263 people, i.e. by 15%. At the end of the year 2016, 26,495 people were registered. As of 30 September, 2017, the Labour Office of the Czech Republic, the Regional Office in Olomouc registered 18,728 job seekers. Compared to the same period of the previous year, their number was lower by 6,246 people, which is the lowest unemployment rate since the establishment of regions. So far, the unemployment rate has never dropped under 19 thousand people. Source: Labour Office of the Czech Republic, the Regional Office in Olomouc

Employment and Wages The continuing growth of the Czech economy was also manifested in the increased employment. In the 2nd quarter of 2017, the average registered number of employees in the Czech Republic reached 3,990.6 thousand people (converted to the fully employed), which was 60.6 thousand people more compared to the same period of the previous year. The year-on-year increase was 1.5%. The number of employees in workplaces in the Olomouc Region also slightly increased, amounting to 219.1 thousand people, which was 1.4 thousand more than in the previous year. The number of employees increased in all regions of the Czech Republic, except the Region (decrease by 0.1%). The biggest increase in the number of employees was registered in the Capital City of (3.4%). The positive situation on the labour market enabled further increase in wages in all regions. In the 2nd quarter of 2017, the average gross wage in the Czech Republic increased by 7.6%. In the Olomouc Region the increase in the average wage exceeded the national average (the increase by 7.9%). The average monthly wage in the region reached 26,070 CZK, which was 1,898 CZK more compared to the same period of the previous year. The highest wage increase was recorded in the (by 9.7%), while the lowest increase in wages occurred in the Capital City of Prague, where wages are the highest in the long term. Despite a higher percentage increase, the average wage in the region was lower than the national average by more than three thousand CZK. In a comparison with the other regions it ranked third lowest. Lower wages were received by employees in the Karlovy Vary Region and the Zlín Region. In the 2nd quarter of 2017, the inflation equalled 2.2% in the entire Czech Republic; as a result, the region saw a real increase in the gross monthly wage by 5.6%.

11 The average number of employees in the Olomouc Region has been increasing since 2013, when it amounted to 206,700 people. In 2017, the Olomouc Region ranked seventh, which meant a slight improvement compared to the traditionally achieved eighth place. The result is influenced by lower productivity, because the region ranks ninth regarding its share on GDP and 11th regarding GDP per capita. Source: Czech Statistical Office

Science and Research A positive trend is the growth of university-educated population. The percentage increased dramatically between 2010 and 2011, and in 2011 the region was the fourth within the Czech Republic with 13.16% of university-educated population (Prague 31.02%, the South Moravian Region 17.7%, and the 13.53%). The region continuously holds the same position. In 2015, the number of university-educated workers aged 26–64 years in the Olomouc Region equalled 60,200, i.e. the fifth place among the regions. Since 1995, the number of university-educated employees has thus increased by more than one half. The structure of the working population aged 25–64 years in 2015 was the following: primary and no education 3%; secondary without the maturita exam, including apprenticeship 41.1%; secondary with the maturita exam 33.4%; university 22.4% (fourth place in the inter-regional comparison). Here, the issue of the work engagement of these university-educated workers arises: a significant part of them are probably employed in non-business entities such as Palacký University Olomouc, the University Hospital in Olomouc, the Olomouc Region and the Statutory City of Olomouc. The number of employees in science and research is relatively high. In 2016, 4,906 employees the Olomouc Region worked in science and research, i.e. 4.91% from the total amount in the Czech Republic (ranking fifth among the regions): the regions outrunning the Olomouc Region are Prague, the Central Bohemian Region, the South Moravian Region, and the Moravian-Silesian Region. As far as research and development is concerned, the dominant subject in the region is Palacký University Olomouc. Another important subject with regard to science and research is the University Hospital in Olomouc. The 143 science and research workplaces of the Olomouc Region comprise 5.05% from the Czech Republic, which means the sixth place among the regions. In 2005, around 2,900 people worked in science and research in the region; between 2005 and 2016, their number increased by two thousand, which may be perceived as a positive trend. The vast majority of workers in science and research are employed by Palacký University Olomouc. The average annual wage of professionals in science and technology in 2015 equalled 36,674 CZK (88.56% of the national average, the 11th place in the inter-regional comparison). The situation has been slightly improving, since the average salary of scientists in the Olomouc Region in 2012 was 33,359 CZK (84.87% of the national average, the 13th place).

12 The total expenditures on research and development in the region in 2015 amounted to 2,833 million CZK (3.54% from the Czech Republic, the seventh place). From these, investment expenditures equalled 297 million CZK (the seventh place), and recurring expenditures amounted 2,536 million CZK (the sixth place among regions). Expenditures in the business sector of science and research implementation have continuously been lower in the Olomouc Region; in 2016, they amounted to 1,460 million CZK (2.98% from the Czech Republic, ranked tenth). In contrast, the Olomouc Region has great results in the long term regarding the university sector of science and research implementation, where it steadily occupies the third place (8.14% from the Czech Republic); in 2016, the amount was 1,334 million CZK. The first place is occupied by Prague, and the second is the South Moravian Region with a great distance from the first place. Regarding the expenditures on science and research activities, the Olomouc Region dominates in basic research, where in 2016 the expenditures equalled 1,100 million CZK (4.8% from the Czech Republic); for the last four years, the region has permanently occupied the fourth place. The situation in applied research is worse: in 2016 the expenditures amounted to 607 million CZK (2.0 % from the Czech Republic, ranked 11th among the regions). In contrast, the situation has been improving in experimental development: in 2016 the expenditures equalled 1,126 million CZK (4.13% from the Czech Republic, ranked eighth). According to the science and research expenditures allocated to the individual fields, the dominant position in the region is occupied by natural sciences; in 2016 the expenditures were 999 million CZK (3.65%, ranked fourth among the regions). This field is followed by agricultural sciences with 90 million CZK (4.32% from the Czech Republic, ranked fifth), medical sciences with 236 million CZK (4.51% from the Czech Republic, ranked sixth), and technical sciences with 1 200 million CZK (2.98% from the Czech Republic, ranked 11th). Source: Czech Statistical Office

Patents The Olomouc Region has improved concerning the number of patent applications: compared to 19 patent applications in 2012, in 2016 their number increased to 34 (4.30% from the Czech Republic, eighth place among the regions). From the 34 applications, fifteen were submitted by private enterprises, nine by physical persons, and eleven by public universities (7 % from the Czech Republic of all universities, fifth place among the regions). In 2015, 114 patents in the Olomouc Region were owned by domestic subjects (3.94% from the Czech Republic, tenth place). In the same year, private enterprises in the region were granted 17 patents (6.91% from the Czech Republic, seventh place). Palacký University Olomouc had 50 valid patents in 2016, which meant the sixth place among public universities. The University thus ranked below the Czech Technical University in Prague, the University of Technology, the Technical University in Liberec, the VSB – Technical University in Ostrava, and the University of Chemistry and Technology Prague.

13 Source: Industrial Property Office; Czech Statistical Office

Organization Statistics In 2016, the Czech Republic registered 2,807,532 economic subjects; from this amount, the Olomouc Region registered 140,735 (5.01% from the Czech Republic, the ninth place in the inter-regional comparison). There were 151 enterprises over one hundred employees operating in the territory of the Olomouc Region in 2016. This amount remains fairly stable in the long term and the region is ranked eighth. Sales revenues of these enterprises amounted to 128,775 million CZK in 2016, from which 85,948 million CZK came from direct export (in both cases, it ranked 13th among the regions). According to CZ-NACE, the majority of these enterprises are registered in manufacture of machinery and equipment, manufacture of fabricated metal products, manufacture of food products, and manufacture of electrical equipment. The dominating part of revenues of the region come from manufacture of electrical equipment, where the region ranks second, following Prague. This sector also employs the most workers. In 2016, the average re-calculated registered number of employees in the Olomouc Region equalled 219,100 (5.49% from the Czech Republic, seventh place among the regions). Compared to 2015, the region thus improved its result by about 3,000 employees and ranked one place higher than the long-term eighth place. The number of employees over the age of 15 years equalled 300,500. From this amount, the primary sector employed 4.3% workers (ranked third), the secondary sector employed 41.4% (ranked seventh), and the tertiary sector employed 54.3% (ranked eighth). As of the end of the year 2016, the statistical register of economic subjects included 140,735 enterprises, organizations, and entrepreneurs. The majority of them were private entrepreneurs registered in accordance with the Trade Act – their number equalled 90,759 (5.39% from the Czech Republic, seventh place) and trading companies amounting to 14,749 (3.19% from the Czech Republic, ranked eighth). As to the prevalent activity, the dominating sector in the region is wholesale and retail trade; repair of motor vehicles (28,949 subjects), followed by industry subjects (18,429 subjects), construction (17,219 subjects), professional, scientific and technical activities (14,979 subjects), accommodation and food service activities (7,935 subjects), and agriculture, forestry and fishing (7,585 subjects). In the recent years, the number of newly established subjects has been slightly increasing (in the year 2016, there were 4,452 newly established subjects and 2,939 subjects ceased to exist). Source: Czech Statistical Office

14 2. Participation of the Region’s Companies in the Selected Subsidy Programmes Within the Operational Programme Research, Development and Education (OP RDE), there were 26 participant projects from the Olomouc Region whose topic may be concerned as related to RIS3. As of November 2017, the majority of projects were implemented within the Call No. 02_16_017 for Research Infrastructures for Educational Purposes – Building or Upgrading in Priority Axis 1 of the OP. In total, 10 projects for 365 million CZK were implemented. These were followed by the Call No. 02_16_013 for Research Infrastructures in Priority Axis 1 of the OP (8 projects for 712 million CZK), the Call No. 02_16_016 for ERDF for Universities in Priority Axis 2 of the OP (7 projects for 374 million CZK), and one project within the Call No. 02_15_003 for the Support of Excellent Research Teams in Priority Axis 1 of the OP for 132 million CZK. The major applicant was Palacký University with 18 out of the 26 projects. In total, these projects cost 1,583 million CZK.

Within the Operational Programme Entrepreneurship and Innovation for Competitiveness (OP EIC), there were 127 participant projects from the Olomouc Region in the period from the programme commencement until November 2017. Allocations for the individual calls are presented in the following table.

Number and Name of the Call Number of Amount Projects No. 01_16_045 Innovation Vouchers – Call I 17 4.7 million CZK No. 01_15_014 Innovations – Innovation Project – Call I 16 870 million CZK No. 01_15_005 ICT and Shared Services – Call I – Creation of New IS/ICT Solutions 15 145 million CZK No. 01_15_016 Marketing – Call I – Individual Participations in Exhibitions and Trade 11 42 million CZK Fairs No. 01_15_019 Application – Call I – with Effective Cooperation 10 267 million CZK No. 01_16_092 Potential – Call III 9 138 million CZK No. 01_15_002 Potential – Call I 8 290 million CZK No. 01_15_18 Application – Call I – without Effective Cooperation 7 166 million CZK

15 No. 01_16_049 Innovations – Innovation Project – Call III 7 143 million CZK No. 01_16_047 Marketing – Individual Participations – Call II 6 17 million CZK No. 01_15_030 Innovations – Project for the Support of Industrial Property Rights– 5 4.3 million CZK Call II No. 01_15_013 Knowledge Transfer Partnership – Call I 4 10 million CZK No. 01_15_023 Marketing – Project of the Agency for the Support of Trade 3 315 million CZK CzechTrade No. 01_16_076 ICT and Shared Services – Creation of New IS/ICT Solutions – Call II 3 73 million CZK No. 01_16_066 ICT and Shared Services – Start-Ups 2 7.3 million CZK No. 01_15_009 Cooperation – Clusters – Call I – Internationalization 1 1.8 million CZK No. 01_15_012 Cooperation – Clusters – Call I – Cluster Development 1 4 million CZK No. 01_15_035 Infrastructure Services – Call I – Non-Public Support – Activity c) 1 9.2 million CZK No. 01_15_022 Marketing – The CzechInvest Project 1 195 million CZK

2 702.3 million TOTAL 127 CZK

Source: Czech Business and Innovation Agency The description of focus of the individual support programmes is available at the website of the Business and Innovation Agency (https://www.agentura- api.org/programy-podpory/).

16 In the programmes of the Technology Agency of the Czech Republic, 21 companies from the Olomouc Region were successful in the monitored programmes between 2014 and 2017: o Programme Epsilon (calls 1, 2, 3): 16 projects o Programme Omega (calls 1, 2, 3): 5 projects Source: Technology Agency of the Czech Republic The description of the focus of individual programmes is available at the TA CR website (www.tacr.cz). Very interesting projects for the support of research and development both in research institutions and companies are prepared within the Integrated Territorial Investment Strategy of the Olomouc agglomeration. Following is a list of projects that have received an approval within this integrated strategy and will be prepared for applications for subsidy calls: The following projects fall into the area or Development of Capacities of Research Teams, Establishment of Strategic Partnerships and Strengthening Long- Term Cooperation of Research Institutions with the Application Sector: o Development of Pre-Application Research in Nano- and Biotechnologies; applicant: Palacký University Olomouc o Research into the Need for Data and Information in the Digital Age Healthcare Sector; applicant: University Hospital in Olomouc o Long-Term Intersectoral Cooperation for Utilization of IT Tools in the Healthcare Sector; applicant: Moravian Business College Olomouc, o.p.s. o Hydrodynamic Pump Design; applicant: Hydraulics Research Centre, Ltd. o Partner Network in Research and Development of Imaging and Lighting Technology and Opto-Electronics for Optical and Automotive Industries; applicant: Palacký University Olomouc The following projects belong to the topic Establishment and Development of Corporate Research and Development Centres, Implementation of Innovations, and Protection of Intellectual Property: o Implementation of Science and Research 2017 Outputs in Serial Production of the Company LASKI; applicant: LASKI, Ltd. o Product and Process Innovation in Shuttering Boards Manufacturing in the Applicant’s Manufacture Plant CETRIS in ; applicant: CIDEM Hranice, Ltd. o Modernization of Prototype Development Workplaces of the Company Meopta – optika, Ltd.; applicant: Meopta – optika, Ltd. o Establishment of A Science and Research Facility and A Prototype Workplace in the Company LASKI; applicant LASKI, Ltd. o Expansion of High-Precision Industrial Optics in the Company Meopta – optika, Ltd.; applicant: Meopta – optika, Ltd. o Manufacturing Innovation in the Company STRNADEL Engineering, Ltd.; applicant: STRNADEL Engineering, Ltd. o Computer Tomography and Other Advanced Methods in Quality Control; applicant: HELLA AUTOTECHNIK NOVA, Ltd.

17 o Establishment of the EXCALIBUR ARMY Development Centre; applicant: EXCALIBUR ARMY Ltd. Source: www.olomoucka-aglomerace.eu

3. Public Administration and Its Role in the Region’s Innovation System The region’s public administration is primarily represented by the Olomouc Region as a higher territorial self-governing unit whose aim is to ensure general development of the region. The vision of the Olomouc Region is a region providing its citizens with conditions for fulfilling life and successful business. Particularly these conditions for successful business are the basic prerequisite for the region’s economic development based on innovation. The agenda concerning regional development including the support of economic development, i.e. the development of business and support of innovations, is governed by the Deputy Governor and the Department of Strategic Regional Development of the Olomouc Region.

In order to support the regional development, the Olomouc Region allocates financial resources from its budget to fund activities of economic development and innovation amounting to millions CZK annually; these are allocated especially through subsidy programmes (regularly in recent years within the Business Support Programme, as well as within the RIS3 Programme of the Olomouc Region 2015, programmes for education support (for subsidy programmes, see below within the overview of support topics), as well as through co-funding of the project Smart Accelerator of the Olomouc Region (hereinafter “SA OK”) in the years 2016-2018. Beyond the finance allocated in the budget of the Olomouc Region as the recipient of a subsidy for this project, the Olomouc Region also invested in funding for the implementation of the SA OK project in 2016 and 2017, and intends to further invest in the year 2018 as well. The funding amounting to millions CZK is invested in the development of the region’s innovation environment from OP RDE, i.e. the European resources. A fundamental contributor to the implementation of the project is the association OK4Innovation as a financial partner of the project as well as a so-called executive unit, whose primary aim is to fulfil the Regional Innovation Strategy elaborated in 2011 by the Olomouc Region. Apart from activities within the project SA OK, the association also develops other activities in the area. The Olomouc Region is one of the founders and a crucial contributor to the association’s budget. In its activities, even beyond the project SA OK, the Olomouc Region strives for fulfilling certain roles stemming from its position concerning the support of economic development and innovation environment in the region (for instance, the role of a coordinator, inciter, supporter, analyst, or information provider). It supports beneficial initiatives in this area conducted by other subjects within the region or collaborates with these subjects, etc. One of the tools for a systemic approach to this matter is also the Regional Innovation Council, which mediates opinions and requests, and initiates new ideas that may support the region’s economic development based on innovation.

18 Concerning other subjects of public administration in the region, the relevant ones with regard to the support of economic development and innovation are particularly the bigger towns in the region, as the agenda of their local authorities also includes regional development. Their collaboration in this area with the Olomouc Region is continuous; among other things, regular meetings of the so-called regionalists are arranged. Other subjects relevant to the areas linked with economic development and support of innovation, i.e. the RIS3 Strategy, are especially the regional offices of the CzechInvest Agency and the Czech Business and Innovation Agency; both of them are state contributory organizations subordinate to the Ministry of Industry and Trade – see below for the description of key actors in the region.

Overview of Support Schemes (Subsidy Programmes) of the Olomouc Region Implemented in Recent Years Connected to the Implementation of the Region’s Innovation System

Subsidy Programmes Opened by the Olomouc Region

Year Subsidy Programme 2013 ● Innovation Vouchers in the Olomouc Region – Call I

2014 ● Innovation Vouchers in the Olomouc Region – Call II

2015 ● The Olomouc Region Apprenticeship Scholarship ● Scholarships for students of technical fields completed by the maturita exam ● RIS3 Programme of the Olomouc Region 2015, three support areas: Innovation Vouchers in the Olomouc Region, Student Innovation in Enterprises of the Olomouc Region, and Holiday Workshops – Day Camps

2016 ● Business Support Programme 2016 ● Polytechnic and Handicraft Education Support Programme in the Olomouc Region 2016

19 ● Support Programme for Gifted Students in the Olomouc Region 2016 ● Olomouc Region Study Scholarship for Study Abroad in 2016

2017 ● Business Support Programme 2017 ● Subsidy Programme Assistance within the Project SA OK ● Olomouc Region Tertiary University Education Support Programme ● Olomouc Region Study Scholarship for Study Abroad in 2017

Source: Olomouc Region

4. Overview of Relevant Conceptions, Analyses and Studies in the Olomouc Region

Survey of the Environment for Innovative Businesses in the Olomouc Region The analysis was elaborated in the period autumn 2010 – spring 2011 as background documentation for the elaboration of the Olomouc Region RIS. It includes the results of in-depth interviews with 116 companies and 31 researchers combined with the data from the Czech Statistical Office and other sources. The analysis was elaborated by BERMAN GROUP Ltd., with Palacký University Olomouc as a subcontractor. The document, available at the website of the Olomouc Region, was a crucial material for elaboration of the initial RIS3 Regional Annex.

Regional Innovation Strategy for the Olomouc Region The Strategy contains an action plan divided into three priority areas (human resources for management and implementation of the innovation processes, a regional system of technology transfer support, and services and support for innovation businesses in key fields / value chains of the region). For every area, it includes individual measures and tools. The number of tools is relatively high; however, since the approval of Regional Innovation Strategy for the Olomouc Region in 2011, only a limited number of them have been implemented. The document was elaborated in the period summer 2010 – August 2011, a discussion over the Olomouc Region RIS began already in autumn 2009. The document was elaborated by BERMAN GROUP Ltd.

20

Olomouc Region Territorial Unit Development Strategy 2015–2020 The Olomouc Region Territorial Unit Development Strategy (SROK) is the fundamental middle-term policy document of the region. One of its main aims is to formulate developmental priorities and goals and areas of the regional support for the five-year period (or a twelve-year period in the case of the vision and long-term priorities and goals) so as to contribute to a balanced and sustainable development of the region’s territorial unit with greatest efficiency possible. An important aspect is identification and utilization of links to national policies and to the cohesion policy of the European Union. The core of the document consists of the “Analytical Part” and the “Proposal Part”. An important annex is “Identification of Areas with Significant Difference in Socio-Economic Development”. The Analytical Part consists of a socio-economic analysis and a summarizing SWOT analysis. The objective of the socio-economic analysis is to briefly evaluate the development in recent years and identify development predispositions and obstacles. Apart from capturing the socio-economic situation of the region, the second analytical plane in the majority of chapters concerns information on the region’s competences and activities in the particular area. The SWOT analysis is divided into the social, economic, environmental, and institutional areas. The Proposal Part is elaborated in two temporal levels. The starting point are the long-term vision and the long-term priorities and goals. The ways of fulfilment of the long-term goals are described in detail at the level of middle-term priorities, goals and support areas. For each activity, activities conducted directly by the regional self-government are emphasized. The final part of the proposal part contains the implementation procedure, where the manner of SROK implementation, its updating and evaluation are set. The third part of SROK identifies the links to operational programmes of the EU programming period 2014-2020. As to the long-term priorities and goals, those important in relation to RIS3 are the long-term priority A. HUMAN RESOURCES DEVELOPMENT, and the long- term priority C. ECONOMY AND INNOVATION. The individual key goals relevant for RIS3 are defined within the framework of these priorities. At present, an action plan has been elaborated including a detailed description of the individual projects, where each project has its actor. The projects are time-bound, including the funding for their implementation. A number of projects are in the process of implementation. The document on the Olomouc Region Territorial Unit Development Strategy for the period 2015-2020 is available at the website of the Olomouc Region.

21 Olomouc Business Environment Survey 2016 In autumn 2016, the Olomouc Business Environment Survey was elaborated. The Business Environment Survey follows the series of surveys that have been traditionally published by the Municipal Office of Olomouc since the year 2000 once in every two years, investigating important business subjects in the region. Interviewers of BERMAN GROUP Ltd., in collaboration with the association OK4Innovation, conducted 37 interviews with managers of companies selected from a group of approximately 100 most important employers in industry and strategic services complemented with a group of small companies maintaining a growth potential. According to the kind of activity, the selected companies were classified in four groups: machinery, construction, other industries, and strategic services and IT. The document is an important source of data for other strategies, such as the RIS3 Strategy. The results show that there is a permanently increasing proportion of companies striving for success on the market via innovations. There is an increasing number of workers in science and research; this is also possible due to collaboration of the businesses with the academic sector, where Palacký University Olomouc plays an important role. The companies increase their performance and create jobs. Especially in the case of industrial businesses, the companies also have a guarantee of future orders and almost reach the limits of development in the place of residence of their business. The businesses regularly invest in technology modernization or real estate reconstructions. The total amount of prepared investments is almost 1.8 milliard CZK. There has been long-term criticism as to the lack of qualified workforce in many fields, especially in technical professions and handicrafts. Notwithstanding certain exceptions, there has been long-term dissatisfaction with the quality of secondary school graduates. Development programmes of several businesses are threatened due to territorial plan-related problems and unprepared sites. The increasing traffic, partly caused by an increasing number of warehouses in the city, results in dissatisfaction of businesses with traffic availability. There are persistent deficiencies such as individual unfinished roads, pavements, bridges, etc. The entire Olomouc Business Environment Survey is available at the website of the Statutory City of Olomouc.

Biomedicine and Life-Science Institutions Pilot Benchmark Study for the Olomouc Region and the Surrounding Localities The European Union actively supports development in the field of Life Science, which strives for increasing the quality of life, since the mean lifetime has been steadily rising and the European population has been growing old. At present, the areas of Life Science have a great demand for utilization of new knowledge resulting from research. In the context of the society’s globally growing interest in health and the steadily increasing importance of research activities, it may be presumed that the fields related to Life Science will quickly increase in the long term. The performance of the Olomouc Region’s economy is below the average; however, there are good prerequisites for the field of Life Science to become one of the pillars of its further development. The study was conducted in order to identify the potential of the regional hospital in relation to this field. The basic working method used was analysis of publicly available data.

22 According to the Albertina database, which was complemented with information regarding 200 biggest subjects, there are approximately 20 thousand employees working in this field within the region (the maximum is 34 thousand). The majority of employees, more than 10 thousand, are registered in institutional health care; approximately another 3,500 people are employed in social services. The institutional health care also creates the highest turnover amounting to approximately 10 milliard CZK (from which 4 milliard CZK come from the University Hospital Olomouc). It is followed by pharmaceutical and medical products trade with approximately 4.5 milliard CZK, and processing industry in Life Science (about 3.3 milliard CZK). Turnover of almost 2.5 milliard CZK is created by outpatient doctors and more than one milliard is created by social care institutions. The analysis was elaborated by BERMAN GROUP Ltd. and the study is not freely available.

ITI Strategy of Olomouc Agglomeration The Integrated Territorial Investments (hereinafter “ITI”) means implementation of an integrated strategy for development of the metropolitan area including key investments in order to address problems in the particular area within more than one priority axis of one or several programmes financed from the European Structural and Investment Funds (hereinafter ‘ESIF’). Based on the analysis, the ITI Strategy of Olomouc Agglomeration identifies problems and needs of the particular metropolitan area and defines their solutions through particular measures and activities in accordance with the goals and investment priorities of the EU. The strategy contains an analytical part and a strategic part. The overall goal of the integrated strategy is to increase competitiveness of the Olomouc agglomeration, particularly by increasing the economic performance of the local businesses, developing the local knowledge economy, and improving the conditions on the labour market in the agglomeration. In order to increase competitiveness, a necessary prerequisite is improvement of the local and regional infrastructure and high-quality environment. The implementation of the ITI of Olomouc Agglomeration has the following strategic goals connected to the RIS3 Strategy: support of the offer-demand balance on the labour market, and establishment of conditions for development of knowledge economy. These strategic goals are divided into specific goals consisting of the individual measures. The complete document is available at the website of the Statutory City of Olomouc. Source: ITI

23 Education Development Regional Action Plan for the Olomouc Region (KAP) for the Period 2016-2018 KAP determines the priorities and the individual steps necessary to achieve the goals of education policy in the territory based on their necessity, urgency, and benefits, and also based on real data and analyses. The plan was elaborated in collaboration with partners in the territory. KAP is not a new strategy in the territory; its principle is to build on what had already been established in the region (The Long-Term Education Objective, RIS3, the Sector Agreement, RAP activities focused on education) and use these outputs for discussion with the partners in the territory, and if an agreement with these partners is achieved, to transfer them into targeted and specific activities. The aim of KAP is to contribute to improvement in school management within the region, as well as development of education quality assessment and planning of strategic steps leading to an increase in the quality of the education system of both the region and the individual schools. Among other things, KAP is intended to enable planning, coordination and monitoring of the topics of interventions in the individual operational programmes in accordance with the long-term needs and priorities of the region and the schools in its territory with respect to the educational policy of the Czech Republic. One of the obligatory activities within the KAP project is elaboration of a Territory Needs Analysis, which addresses the needs in the territory of the Olomouc Region with regard to its education system, particularly the system of secondary and higher vocational schools. The Territory Needs Analysis for the Olomouc Region (hereinafter the Analysis) is a crucial strategic document elaborated as a part of implementation of the project Education Development Regional Action Plan for the Olomouc Region (KAP). The Territory Needs Analysis is a document closely following the 2016-2020Long-Term Objective for Education and Education System Development for the Olomouc Region, which determines the basic directions of education-related development. The Analysis is based particularly on new strategic, conceptual and legal documents created at both the regional and the national level. It includes even new legal norms and methodological guidelines for programme support for the complex development of education in Czech Republic. The Analysis reflects conceptual and methodological materials of the Government of the Czech Republic, the Ministry of Education, Youth and Sports, and the European Union. The Analysis includes an overview of information related to the current condition according to the individual topics. Topics related to the RIS3 Strategy are especially the following: support for competences towards entrepreneurship, initiative and creativity, support for polytechnic education, support for professional education including collaboration of schools with employers, development of career counselling, support for professional education centres, and support for lifelong interest and informal education. The Analysis also contains a final summary of results, where a table lists the problems, their causes, and the desirable changes and goals. The table is based on the regional as well as national strategic documents, and the outputs from professional working groups within the implementation team of the project Education Development Regional Action Plan for the

24 Olomouc Region; the data is classified according to the areas of intervention in accordance with the methodology “KAP Procedures”. The materials as well as their annexes are available at the website of the Olomouc Region.

Community-Led Local Development Strategy (SCLLD) in the Olomouc Region At present, there are sixteen local action groups (LAG) in the territory of the Olomouc Region. All of them have their own approved CLLD Strategies. These strategies address particularly the problems and potential of the individual localities and determine various measures enabling further development. The strategies have an analytical, a strategic, and an implementation part. The analytical part contains a description and developmental needs of the particular locality. This part also points out the approved long-term developmental objectives, strategies, etc. For every strategy, the potential of the particular locality is assessed, and the priorities within the strategy and the options for their achievement via programme frameworks or individual projects are determined. All strategies are available at the website of the Nation Network of the Local Action Groups in the Czech Republic.

Cultural and Creative Industries in the Olomouc Region The 2016 study overviews cultural and creative industries in the Olomouc Region related to the following areas: scenic and fine arts, culture and art education, cultural heritage, TV and radio, film and video, music, literature, books and printing, software development, architecture, clothing and fashion design, and design and advertisement.

Cluster Potential of the Olomouc Region Mapping and Analysis Study A study elaborated in 2016 was related to identification of the region’s potential concerning establishment of a cluster in three selected areas: optics and precision mechanics, water management technology, and plant biotechnology. These fields are closely related to the specializations of the Olomouc Region – the RIS3 domains. The main objective of the study was support of economic growth and competitiveness of the region’s economy through managed cooperation of subjects in the identified field clusters. This mapping study is based on the Regional Cluster Policy, a methodology certified by the Ministry of Industry and Trade. The main author of the study was the National Cluster Association and the study was financed by the Olomouc Region. At present, the study is not yet publicly available.

25 The basic procedure for the analysis of the region’s potential contained two parts: an analysis of data and statistics, and interviews in companies. In order to evaluate the presence of a cluster within the region, location coefficients were counted in the individual fields based on the CZ-NACE codes. The result of the statistical analysis is a confirmation of the existence of the cluster potential suitable for further investigation. The data was further used to verify, complement and correct the results of statistical surveys, and to determine the extent of the actual links, fields not covered by statistical analyses, and more detailed characteristics of the cluster and the development potential, including identification of the opportunities for elaboration of particular political measures in order to utilize it. After the statistical analysis, an analysis of the identified cluster with the development potential followed, and it was determined to what extent it represents a source of competitive advantage. Other methods of assessment of the particular cluster involved an analysis of the value chain and a map of the individual fields within the cluster.

5. Main Actors in the Innovation System With regard to innovations, the main actor is Palacký University Olomouc, followed by the Moravian Business College and the College of Logistics. An important role is also played by private research centres, such as Hydraulics Research Centre, Ltd.; AGRITEC, Research, Breeding and Services Ltd., Agroresearch Rapotín Ltd., Technological Centre Precheza Inc. (formerly the Czech Technological Centre for Inorganic Pigments Inc., presently directly under Prezecha Inc.).

Universities and Research Centres in Olomouc Palacký University Olomouc (UPOL) is a university with a long tradition. Established already in the fifteenth century, it is the oldest university in Moravia and the second oldest in the Czech Republic. At present, the university is a modern education institution with a wide range of study fields and a great number of scientific activities. Around 19,000 students attend its eight faculties. In 2017, UPOL ranked 600th in the ranking of the top universities of “The Center for World University Rankings”. The only university achieving higher ranking was Charles University with the 255th place; lower ranking was achieved by the Czech Technical University in Prague, ranked 661st, and Masaryk University, ranked 686th. Other universities did not achieve any position within the ranking.

In 2015 UPOL achieved the 724th position, and in 2014 it was 804th. It is apparent that the university has seen a great progress by 204 places in the last three years, as in 2014, Charles University, Masaryk University and the Czech Technical

26 University in Prague were ranked above UPOL. In 2017, UPOL ranked 479th in another prestigious ranking, “The U. S. News & World Report Best Global Universities Rankings”. The result was worse compared to the year 2015, when the university was 473rd. Higher ranking than UPOL was again achieved only by Charles University and the Czech Technical University in Prague.

In recent years, there has been an obvious improvement in the performance of the research infrastructure at UPOL. The development of UPOL research activities between 2010 and 2014 was financially supported particularly from OP RDI and EC OP. There are presently a number of research teams at UPOL oriented on basic research; its results frequently have the potential of being used in the application sector. The UPOL basic research in optics, biotechnology and biomedicine reaches the world level.

Research Centres In the recent years, three UPOL research centres have been finished: The Centre of the Region Haná for Biotechnological and Agricultural Research (CRH), The Regional Centre of Advanced Technologies and Materials (RCPTM), and The Institute of Molecular and Translational Medicine (UMTM). Also, there is the Application Centre BALUO operating under the UPOL Faculty of Physical Culture. The UPOL Faculty of Medicine in collaboration with the University Hospital in Olomouc operate the Czech National eHealth Center (NTMC).

Centre of the Region Haná for Biotechnological and Agricultural Research (CRH)

CRH is not only a centre of biotechnology research in the region, but also one with a significant influence even worldwide. It conducts top-class research in plant genetics and genomics, proteomics, and cell and molecular biology, which is followed by experimental development of new growth regulators and biotechnological utilization of plants. The centre is equipped with unique technologies and procedures for the study of the plant cell cytoskeleton, classification and marking of chromosomes, proteome mapping, preparation of transgenic plants, climatic chambers and a phenotyping platform for characterization of mutant plants and the influence of the environment, and grounds for small-scale field experiments.

Regional Centre of Advanced Technologies and Materials (RCPTM)

RCPTM is one of prominent European workplaces in the field of chemical, nano-material and optical research producing a great amount of high-quality research results. The centre is equipped with a unique range of appliances and collaborates with businesses from both the private and the public application sector. The centre also participates in a range of

27 international projects and large-scale international scientific collaborations. Its scientific activities are focused particularly on magnetic nano-systems and coordination compounds for biomedicine and biotechnology, nano-materials based on metal oxides or iron compounds, and hybrid nano-structures for environmental applications, graphene derivatives, carbon quantum dots, biomacromolecules, nano-silver for antimicrobial applications, description of the characteristics of micro- and nano-object surfaces, development of miniaturized analytical equipment, quantum processing of information, and particle and high energy physics.

Institute of Molecular and Translational Medicine (UMTM)

UMTM is a technical infrastructure and platform for molecule-oriented basic and translational biomedicine research with the aim to enhance comprehension of the molecular nature of cancerous and infectious diseases. The inciter of its establishment was Palacký University Olomouc: in collaboration with the University Hospital in Olomouc, the University of Chemistry and Technology Prague, the Institute of Organic Chemistry and Biochemistry of the Czech Academy of Sciences and with important subjects from the application sector, UPOL prepared the BIOMEDREG project under which UMTM operates. Source: ITI of Olomouc Agglomeration

Application Centre BALUO

The Application Centre BALUO, operating under the Palacký University Olomouc Faculty of Physical Culture, is a unique science and technology park focused on the support of healthy lifestyle, prevention of civilization diseases and optimization of physical activity. The centre is a workplace of the UPOL Faculty of Physical Culture.

Czech National eHealth Center (NTMC)

The Czech National eHealth Center (NTMC) is operated by the University Hospital in Olomouc in collaboration with the UPOL Faculty of Medicine. NTMC was established as a centre for coordination and education of a new, quickly developing branch of medicine – eHealth, or telemedicine. At present, there are numerous activities related to eHealth in the Czech Republic; the majority of them, however, only deals with individual tasks. The objective of NTMC is to unite these activities within one organization structure, search for new directions and procedures in the field and investigate them, verify and implement

28 these innovations and principles into practice, and also develop and utilize modern methods in both pre-gradual and post-gradual education. NTMC is the only centre in the Czech Republic focusing comprehensively on implementation of clinically important activities in the field of telemedicine. The establishment of NTMC was incited by the University Hospital in Olomouc (FNOL), the 1st Clinic of Internal Medicine – Cardiology of FNOL, and the Faculty of Medicine of Palacký University Olomouc. The Czech National eHealth Center is part of the infrastructure of the University Hospital in Olomouc, where it is registered as a treatment centre. Other collaborating partners include subjects such as university institutes, healthcare institutions, technology companies, and other relevant subjects. At present, the implemented research focuses particularly on the fields of cardiology and diabetology. NTMC strives for extension of the research focus into other medical fields (oncology, pneumology, neurology, etc.) where the utilization of telemedicine technology is purposeful and has a potential for further development. The objective of NTMC is not only to provide common eHealth care, but especially to actively participate in research, development and scientific verification of new procedures in the field, acquisition of top-class know-how from foreign subjects and professionals, its dissemination to other professional workplaces around the Czech Republic, education of new professionals the field of eHealth, and utilization of modern methods for teaching in medical and non-medical study fields. Since 2014, eHealth has also been included in the curriculum of the UPOL Faculty of Medicine. The establishment of the centre enabled students as well as academic staff to participate in study stays, traineeships and internships at foreign expert institutions and companies oriented on eHealth. Such institutions include hospitals, technology or development companies, and research centres. The objective of NTMC is also to enhance the efficiency of healthcare provision at the senior population not only through technology, but also with systemic measures that shall lead to dissemination of good practices from abroad and implementation of integrated care into the Czech healthcare system. Source: Czech National eHealth Center

Moravian Business College o.p.s. (MVŠO) MVŠO is a well-established private school providing economic education in the Olomouc Region. It works as a public benefit organization (o.p.s.) aiming to raise professionals in the field of economy and management that are needed in the region. The professional focus of MVŠO are innovations and management of small and medium businesses, and a sustainable economic system of the region. Its fundamental vision is supporting the region’s economic growth and development. Its objective is continuous improvement in the quality of study and high employability of its graduates on the labour market as well as in the follow-up study. Emphasis is therefore put on students’ practical training that is reflected in the obligatory number of hours spent on traineeships in

29 companies, elaboration of case studies and implementation of social responsibility projects. MVŠO has accreditations for a Bachelor and a follow-up Master degree programme “Economy and Management”. Source: Moravian Business College

College of Logistics o.p.s. (VŠLG) VŠLG is a non-university-type private college; it is the only institution in the Czech Republic offering three degrees of tertiary education (Bc., Ing., Ph.D.) in the study programme “Logistics” (transport logistics, services logistics, tourism logistics, and information management). The objective of VŠLG is to provide applicants from various areas of logistics systems (transport companies, service providers) and other fields with the opportunity to achieve college education in the Bachelor degree programmes Transport Logistics, Services Logistics, Tourism Logistics, and Information Management, taking into account the fact that there is no similar degree programme at any other university in the Czech Republic. VŠLG provides education in the basic theoretical knowledge from the field of logistics, physics, operational research, and IT applicable in various areas of the logistics systems (transport, transport infrastructure, and private and public services). These core areas are supplemented by economy and law related to transport, management and services; these provide the graduates with pre-requisites for solving practical problems regarding transport processes and processes in service provision. Source: VŠLG

VSB – Technical University in Ostrava, Faculty of Mechanical Engineering Šumperk The Bachelor study centre in Šumperk was established in 2002. Study is conducted in an accredited Bachelor study programme “Mechanical Engineering”. Students can study in the field “Mechanical Engineering Technology” with the first four terms involving obligatory courses, and the professional courses starting in the fifth term. At present, the Bachelor degree programme includes in total approximately 160 students in both the full-time and the distance form of study.

Map of the Application Potential of the Public Research Sector in the Olomouc Region

30 Main Science and Research Fields for the Main Technology Area Sectors and Fields of Technology Application Particular Technology Area

Organic Chemistry and Biochemistry Pharmaceutical industry Cell and Molecular Biology Medicinal and Other Active Substances Cosmetics industry Translational and Experimental Medicine (natural and synthetized) Chemical industry – specializations Related and Support Medicine Fields Food industry

Agriculture for food industry Cell and Molecular Biology Agriculture for chemical industry Organic Chemistry and Biochemistry Plant Biotechnologies Eco-technologies Nanotechnology Research Energetics

Optics High-precision device industry – optics, medicine, Nanotechnology Research (Micro/Nano) Optical Technologies measurement, etc. (Mathematics and IT) microelectronics

Medical devices Materials and technologies for medical appliances Physics- and Chemistry-Oriented (Nano)Research Materials and technologies for water treatment and The Entire Range of Chemistry Fields New Materials and Nanotechnologies other eco-technologies Medicine Fields Industrial applications requiring materials with new properties

Source: Survey of the Environment for Innovative Businesses in the Olomouc Region; Berman Group 2011

31 Private Research Companies

HYDRAULICS RESEARCH CENTRE Ltd. In 2010, the company SIGMA GROUP Inc. incited the establishment of the company HYDRAULICS RESEARCH CENTRE Ltd., which has the statute of a research organization in acccordance with the EU legislation. The objective of this organization is to ensure participation of scientific and academic institutions, university students and professionals from the particular field in the basic research and development in the area of hydraulics of liquids, hydrostatic and hydrodynamic machinery, and pumping equipment. The company focuses particularly on research and development in the area of natural and technical sciences, experimental activities in hydraulics and dynamics of liquids and gases, experimental activities in hydrostatic and hydrodynamic machinery and the related technology, mathematical optimization of hydraulic shapes of the components in hydrodynamic machinery and hydraulic systems, acquisition and provision of scientific-technical information, training and education activities in the areas of hydraulics, testing, measurement, analyses and examination. The centre also cooperates in basic and applied research with prominent national and foreign scientific and research centres and institutions, such as the Institute of Thermomechanics of the Czech Academy of Sciences, the Brno University of Technology, the Czech Technical University in Prague, the Technical University in Liberec, the Technical University of Ostrava, Palacký University Olomouc, CERIT, IAPWS, Slovak University of Technology in Bratislava, or University of Jyväskylä. In its laboratory, the centre operates the biggest cavitation tunnel in the Czech Republic serving for research in dynamic and erosive effects of cavitation. Aside experimental research in the tunnel, the hydraulics laboratory also conducts visualization and measurement of cavitation effects in the interior of real hydrodynamic machines. The centre has long-term experience with numerical modeling of cavitation and apart from common equipment it has its own software for modeling of the dynamics of cavitation bubbles and cavitation structures including the power effects of cavitation collapses. Source: Hydraulics Research Centre Ltd.

AGRITEC, Research, Breeding and Services Ltd. The company AGRITEC works in basic as well as applied research for agriculture, the environment, and food industry. Its focus also includes plant breeding, propagation and sale of seeds, ans sale of chemical plant protection products, growing media and feedstuffs. Agritec provides services from the field of biochemistry, chemical analyses, laboratory and field testing of agents, excipients and varieties. The company also offers consultancy and advisory services.

32 Another activity of Agritec is research in gene sources of legumes, flax and hemp, and research in genetic-breeding methods at legumes, especially flax and rape. The company conducts research in cultivation technology of peas, faba beans, lupine, flax, hemp, and caraway, and in integrated protection of legumes and flax. It also intensively works in the area of breeding new varieties of flax, peas, faba beans, and rape, and in maintenance breeding of its own and licensed varieties. The company represents foreign companies for variety testing. In addition, it produces, adjusts, stores and distributes seeds of legumes and industrial plants.

The company Agritec also provides the following services: testing and chemical analyses of inorganic and organic substances, determination of mycotoxins, flax stem scutching and determination of the content and quality of fiber, and testing of plant protection products for registration. The company operates an accredited “Business and Innovation Park” with offices and production premises available for rent. Agritec sells plant protection products, trades field crop seeds, cultivates and sells ornamental plants, vegetable seedlings, growing media, and feedstuffs for domestic and farm animals.

Agroresearch Rapotín Ltd. The company Agroresearch Rapotín Ltd. was established in 2004 as a subsidiary of the Research Institute for Cattle Breeding, Ltd. The company’s main activity is research and development aimed at solving the current problems in agriculture. In its research activities, the company focuses especially on nutrition, breeding and reproduction of cattle and sheep, operation in LFAs and national natural areas, and the quality and production of milk and meat. The company also provides bioimpedance spectroscopy. Its well-equipped laboratory does chemical analysis of all kinds of water, organic analyses of feedstuffs and plants, analyses of soil and other biological materials, and analyses of sludges and composts. In addition, it provides professional consultancy and operates an accredited experimental stable.

Precheza Inc. (formerly the Technological Centre Precheza Inc. and the Czech Technological Centre for Inorganic Pigments Inc.) The company works in research and development of all pigment and non-pigment applications of titanium, iron and calcium oxides and sulphates, especially for its own needs. The Czech Technological Centre for Inorganic Pigments Inc. was established in 2004 in order to streamline the transfer of the latest science and technology findings into the industrial practice and to strengthen the application service for customers. The centre focuses on research and development in the field of inorganic pigments and their applications in concrete, renderings, coating materials, plastics, chemical fibres and paper. The research programme is closely connected to the production programme of the Přerov company PRECHEZA Inc., the leader in inorganic pigments production within the Czech Republic. To its customers, the company provides a full application and

33 technical support regarding technological issues related to application of pigments into the matrices of building materials and their dosage, as well as transport and storage of various types of inorganic pigments. It proposes and modifies manufacturing recipes with regard to the required final colour shade. A new research project focuses on development of photocatalytic nanomaterials based on titanium dioxide used in building materials to achieve degradation of atmospheric pollutants and partial self-cleaning properties of the building material surface. The company’s research and development is focused particularly on titanium dioxide, iron-based pigments, and new products. In the area of nanotechnology, research and development involves the area of inorganic pigments and new materials (nano-TiO2, nano-Fe2O3, UV absorbers, HPP colour pigments, transparent pigments, etc.).

Other Important Subjects Involved in Research Another important subject is the technology centre of the international company Olympus: Olympus Surgical Technologies Europe - Olympus Medical Products Czech, Ltd. resident in Přerov, which deals with development and production of endoscopes. Other companies with important development capacities include Meopta – optika, Ltd.; EXCALIBUR ARMY Ltd.; HELLA AUTOTECHNIK NOVA Ltd.; FARMAK Inc., and others.

Other Actors in the Innovation System

Palacký University Science and Technology Park (VTP UP) Palacký University Science and Technology Park creates a bridge between the scientific world and the world of business. In operation since 2000, VTP UP provides offices and production premises for rent as well as consultancy services, and supports commercial utilization of Palacký University know-how. Since the end of 2015, it has been operating specialized 3D print and numerical calculation workplaces. VTP UP contributes to the growth of the Olomouc Region’s economic level through support of development of innovative companies and establishment of spin-offs and start-ups with the emphasis on utilization of the potential of Palacký University Olomouc. It seeks and supports collaboration in application of science and research results in the commercial sector and transfers the needs of this sector into the scientific and research centres of Palacký University Olomouc. VTP UP is an active part of the regional innovation infrastructure of the Olomouc Region. It participates in creation and implementation of the RIS3 Strategy for the Olomouc Region. It is a member of several professional associations and networks (Enterprise Europe

34 Network, Tuesday Business Network, Czech Innovation, Science and Technology Parks Association of the Czech Republic, National Cluster Association, Transfera.cz, Association of Innovative Entrepreneurship). VTP UP uses the science and research facilities and know-how of Palacký University for its clients. The head of VTP UP is the manager, operating the Park under the supervision of the Vice-Rector for Technology Transfer of Palacký University Olomouc. VTP UP is structured into three departments: the Business Support Office, the Technology Transfer Office, and Competence Centres such as UPrint 3D. The Business Support Office helps starting entrepreneurs with establishing a business with a unique vision and focus. The office builds a community of enterprising people associated in the UP Business Club. It provides rental of premises for starting and innovative companies (offices, laboratories, pilot plant production premises, co-working, virtual residence). In addition, it organizes educational and networking events focused on personal and entrepreneurial development. The most promising projects are offered the rental of premises and consultancy services of consultants and mentors for a discounted price or for free (Business Incubator). The Technology Transfer Office administers the intellectual property of Palacký University Olomouc. Its focus is development of commercially promising projects using the university science and research results. The office ensures commercial cooperation with companies in the areas of contractual research, custom research and license agreements. It supports university employees in establishing companies using the outputs of research and development. It ensures project support for academic staff as well as companies. The UPrint 3D workplace is the biggest 3D print centre in Moravia offering 3D print using plastics, polymers, metal powders and paper, including 3D scanning. The Numerical Modelling workplace ensures numerical simulations in the software ANSYS Multiphysics done by the supercomputer SGI UV2000, and rental of its computation time. In 2016, VTP UP had 47 tenants with 155 employees. The Business Club community involved 29 members. In 2016, six new proof-of-concepts were created, along with processing 34 enquiries for measurement and research, and 24 implemented projects. In addition, the University applied three trademarks, 16 patents and six utility models in 2016. Source: VTP UP

Chamber of Commerce of the Olomouc Region The Chamber of Commerce of the Olomouc Region (KHK OK) was established in 1999 and serves as a voluntary association of chambers of commerce of the individual districts within the Olomouc Region. The Chamber ensures unified representation of the interests of entrepreneurs at the regional level. The

35 member base of the Chamber of Commerce of the Olomouc Region includes three district chambers of commerce of the Olomouc Region. Entrepreneurs can become members of any of these district chambers located in the former district towns of the Olomouc Region, which provide a wide range of professional services for entrepreneurs. The main activity of the KHK OK is to help create the business environment of the region, support business activities, promote, protect and defend the objectives of business subjects – members of the district chambers of commerce. In addition, it aims to represent, coordinate, promote and defend the interests of the member district chambers, actively participate in development of the regional business subjects within the region, the Czech Republic, and abroad, especially in the European Union. The Chamber also closely collaborates with national, regional and business subjects and all relevant bodies and institutions in order to facilitate the region’s development. Source: KHK OK

The Association OK4Innovation OK4Innovation is an interest association of legal entities established in 2011 for the purpose of implementation of the Regional Innovation Strategy for the Olomouc Region (RIS) and the support of establishment, development and commercial application of innovations created by companies as well as research institutions. The association has the following members: the Olomouc Region, the Statutory City of Olomouc, Palacký University Olomouc, the College of Logistics, the Endowment Institute for Regional Cooperation, and the MedChemBio cluster. The primary aim of OK4Innovation is support of economic development and growth of the knowledge economy in the Olomouc Region. The main activities of the association include proposals, preparation and implementation of support and development projects in three key areas: 1) better availability and qualification of workforce for innovations; 2) a regional system of the support of research, development and knowledge transfer; and 3) high-quality services and support for innovation businesses. The association OK4Innovation plays the role of an innovation centre in the Olomouc Region. At the end of 2015, the Olomouc Region delegated the association OK4Innovation to implement the project “Smart Accelerator of the Olomouc Region” through a partnership agreement with a financial contribution; the project implementation period was from 1 January, 2016, to 31 December, 2018.

36 Regional Development Agency for Central Moravia z.s.p.o. (RARSM) The agency’s main role is to develop and further elaborate the visions and strategies of the region’s complex development, coordinate their implementation, and support problem solutions exceeding the scope of the individual municipalities and options available to them.

Confederation of Industry; Regional Representation for the Olomouc Region and the Zlín Region The Confederation of Industry of the Czech Republic is a non-governmental voluntary non-political organization associating employers and entrepreneurs of the Czech Republic. It is the biggest employer association representing the majority of the Czech industry and transport. Its mission is to influence economic and social policies of the Czech government in order to create optimal conditions for dynamic development of business in the Czech Republic. Having its representatives in the individual regions, the Confederation of Industry is active in the entire Czech Republic. This enables timely provision of information to its members regarding the current legislation necessary for their business. The Confederation actively communicates with public administration and is an important social partner even at the regional level.

CzechInvest – Olomouc Regional Office The Investment and Business Development Agency CzechInvest is a state contributory organization subordinate to the Ministry of Industry and Trade of the Czech Republic. The agency negotiates domestic and foreign investments in the Czech Republic in the area of production, strategic services and technology centres. In addition, it supports small, medium and starting innovative entrepreneurs, the business infrastructure, and innovations. CzechInvest’s activities abroad involve promotion of the Czech Republic as a convenient locality for investment allocation. It is the exclusive organization submitting investment incentive applications to the supervising bodies. The agency supports Czech companies interested in becoming part of supply chains of multinational companies. With its services and development programmes, CzechInvest contributes to the development of domestic companies and supports Czech and foreign investors and the overall business environment. Activities of the regional office involve particularly providing information on the Agency’s services, discussing the options of business support from the programmes of EU structural funds ensured by CzechInvest with representatives of companies, helping companies interested in implementing their investment in the particular region, cooperation with the representatives of local state administration bodies as well as local authorities, schools and other regional institutions in searching for opportunities for the development of the region’s business environment, and organizing seminars. Source: CzechInvest

37 The Czech Business and Innovation Agency (API) – Olomouc Regional Office API is a state contributory organization subordinate to the Ministry of Industry and Trade of the Czech Republic. It plays the role of the mediator for subsidy programmes under the Operational Programme Entrepreneurship and Innovation for Competitiveness (OP EIC); the operational programme provides co-funding of business subjects in processing industry and the related services. The agency administers subsidy programmes within OP EIC 2014 – 2020 and thus helps co-finance business subjects in the field of processing industry and the related services. Within the framework of OP EIC programmes, the agency targets at a wide range of development-related needs of businesses of all sizes, and supports projects focused on research, development and innovations, technological development, the ICT and low-energy programmes. The agency helps particularly with provision of information regarding the options of business support from OP EIC. It provides project consultancy and administration from the idea to its implementation and sustainability, organizes professional seminars, and helps develop the Czech business and innovation environment. Source: API

Clusters in the Olomouc Region The Olomouc Region’s support of activities of the existing clusters is provided especially through the subsidy programme for support of business that is organized annually by the Olomouc Region; among other things, the programme provides support for the activities of clusters. At present, there are five clusters operating in the territory of the Olomouc Region: the Czech Nanotechnology Cluster, MedChemBio, the Innovation Cluster Olomouc, the Moravian- Silesian Wood Cluster, and since 2017 also the Czech Optical Cluster. Concerning science and research, particularly the MedChemBio cluster for medicinal chemistry and chemical biology is of great importance.

Czech Nanotechnology Cluster; a cooperative (ČNK)

The Czech Nanotechnology Cluster associates subjects active in nanotechnology utilization. The main agenda of the cluster involves information and technology transfer, consultancy, education, science and research, promotion, and networking. The common interest of the cluster’s members is the application of nanotechnology in practice. The aim of the cluster is to build a strong group of closely collaborating companies and institutions of the Olomouc Region using nanotechnologies not only for education, research and development, and technology, but also in the final products and services, and to facilitate their mutual collaboration and communication. At present, the cluster’s activity is inhibited.

38

Innovation Cluster Olomouc; a cooperative

The Innovation Cluster Olomouc comprises regionally interconnected subjects from the fields of IT, building management, and tertiary education oriented especially on economics and management. The cluster actively collaborates with the academic and the business sectors for the purpose of transfer of research results into the practice. The cluster incorporates two companies and one private college. The cluster does not conduct any own research and serves rather as a service organization for its founders. More information may be found at the website www.o-k-i.cz.

MedChemBio Cluster

The cluster is a key collaboration subject of academic workplaces, companies, suppliers, investors, professional associations and production companies in the areas of development, testing and production of medical substances, thus promoting the development of medicinal chemistry and chemical biology in the Czech Republic. The cluster has established a functional platform for exchange of professional findings; it has successfully increased the number of its members by offering the opportunity to participate in implementation of joint projects, participation in professional events organized regularly by the cluster, and to utilize the existing infrastructure. The cluster provides an extensive information service, notifies its members of convenient business and promotion opportunities, and mediates meetings with prominent professionals. The cluster’s key partner is Palacký University Olomouc, which provides the facilities to the cluster at its Faculty of Medicine and Faculty of Science. The cluster closely collaborates particularly with the Institute of Molecular and Translational Medicine of the Palacký University Faculty of Medicine which represents an important platform for research and development in medical substances and biomarkers. The MedChemBio cluster has successfully implemented projects co-funded from the EU structural funds. Within these projects, the cluster succeeded in establishing a laboratory working in the regime of good production practice, providing services in the area of quality control of medical substances, active substances, starting substances, and intermediate products. The MedChemBio laboratory focuses particularly on validations of analytical methods including elaboration of the relevant validation documents. The cluster contains 26 members; seven of them are from the Olomouc Region. More information may be found at the website www.medchembio.cz.

39 Moravian-Silesian Wood Cluster; a civic association (MSDK)

The cluster is presently active in the Moravian-Silesian Region, the Olomouc Region and the Zlín Region. The prevalent part of its members are small and medium companies working in woodworking and construction industries, but the cluster also involves representatives of secondary and tertiary education. The structure of companies covers the entire chain from wood growing and logging to its subsequent processing, and finally the manufacturing of products with high added value. The cluster’s activities are focused on improving business conditions in woodworking industry and enhancing the mutual interconnections of research, universities, and the business sector. The main cluster’s objectives include inciting and coordinating the collaboration of its members in order to increase competitiveness, economic growth, export, and the number of implemented innovations, as well as promoting the region, the cluster, and its members, supporting utilization of wood in construction industry, and creating new stimuli for development in woodworking industry. The cluster has 28 members; four of them are from the Olomouc Region. More information may be found at the website www.msdk.cz. Source: Olomouc Region

Czech Optical Cluster

The Czech Optical Cluster (COC) was established to improve the conditions for development of optical industry in the Czech Republic (with emphasis on the Olomouc Region) in the form of the mutual collaboration of companies, the public sector, and the education sector in the entire value chain within the field of optics, optomechanics, photonics, optoelectronics, and high-precision mechanics, including the related production. The cluster also strives for development of technology and services in the supplier and customer sphere concerning three areas: imaging and consumer optics, military optics, and lighting technology. The cluster, being the most recent one established in the territory of the Olomouc Region in 2017, has five members: three of them are from the Olomouc Region. There are three other subjects negotiating the entry into the cluster. The main activities of the cluster include the following: research, development and innovation, cooperative development projects, international projects, technology development, establishment of shared infrastructure, determination of development trends, transfer of know-how regarding trends and technologies, development of human resources, specialized events, workshops, attracting talented individuals, practical training of students, internship programmes, marketing and public relations, cluster promotion, establishment of the regional and field identity of the Olomouc Region as a centre of optics, internationalization, cooperation with European clusters, participation in international events, and joint international projects. More information may be found at the website http://www.optickyklastr.cz/. Source: Czech Optical Cluster

40

41 6. SWOT Analysis The SWOT analysis concerns the region’s innovation system. It is divided into the following parts: Strengths and weaknesses for four areas: o Region’s position; o Innovation business and the private sector / innovation performance of the region, including science and research in private companies and support organizations; o Science and research in the region with emphasis on public science and research organizations, as well as research institutes for the individual fields, including private ones, etc.; o Human resources. Opportunities and threats for four areas: o Political/legislative influence; o Economical/financial influence; o Social/demographic influence; o Technological influence.

42

STRENGTHS WEAKNESSES Region’s Position ● Palacký University offers study in fields not provided by any other ● A relatively low GDP per capita and its low dynamics institution in the Czech Republic (e.g. nanotechnology, optics, nanomaterial chemistry and the follow-up material chemistry, etc.) ● Prominent role of science and research in optics, optomechatronics ● The lowest proportion of processing industry on GDP and and high-precision mechanics compared to other regions employment in the Czech Republic due to a high proportion of public services and building industry Innovation Business ● Expansion of research departments is intended within some of the ● A small number of big companies (employers) outside the public sector foreign investments ● There are established domestic companies intending to grow who have ● The inability of many small and medium companies to manage their own development workplace or collaborate with some of the innovation processes; a lower proportion of knowledge-intensive universities activities, and the resulting weak innovation demand ● The willingness of companies to invest into technologies and production ● Only a small number of subjects having an actual science and research facilities department (most of them in machinery) ● The position within the global value chain (far from the end customer) ● There are several academic spin-offs, but the engagement of academic staff in the management of these companies is low and at the same time, professional management in these companies is absent ● Only a small number of companies focused on creative development and production of their own products with high added value ● Many companies with foreign ownership have trouble increasing their autonomy and implementing development departments and production programmes with higher added value

43 ● A small number of newly established start-ups with innovation- oriented products

Science and Research ● Excellent research facilities with the applicability potential of science and ● Notwithstanding the irrefutable results in basic research (especially in research outputs: regional excellence centres of Palacký University the areas of new (nano)materials and technologies, agricultural Olomouc (the Regional Centre of Advanced Technologies and Materials, research, and biomedicine), the region’s image as an innovation centre the Centre of the Region Haná for Biotechnological and Agricultural is weak Research, the Institute of Molecular and Translational Medicine), the fields of optics and special pedagogy, the Application Centre BALUO ● The potential of the Technology Transfer Office of the UP Science and ● Discrepancies between the needs of companies and the objectives of Technology Park, the central offer of research capacities at Palacký research workplaces (research fields of Palacký University Olomouc University Olomouc, assistance services related to collaboration lack a sufficient number of suitable industrial partners in the region) ● The number of workers in science and research ● Existence of a high-quality science and technology park Human Resources for Innovations and Science and Research ● Palacký University Olomouc has several excellence research teams with ● The lack of highly qualified professionals necessary for development a high application potential (pharmacy, cosmetics, breeding and plant and maintenance of companies’ competitive advantage (even biotechnology, optics, high-precision devices, new materials and technically oriented labourers) caused among other things by lower nanotechnologies) attractivity of the region for these professionals (especially foreign ones) as a place of long-term residence ● Collaboration among research teams across research areas – new ● Low entrepreneurship of students technologies are created in commercially attractive interdisciplinary fields ● The UP Science and Technology Park ensures even standard services ● The quality of some secondary-school graduates is within the “Business Incubator”: facilities, education, and consultancy perceived as inferior by employers

44 ● The UP Faculty of Arts raises students fluent even in non-traditional ● A lack of fields integrating science and research activities with languages management skills and/or engineering skills ● The existence of private colleges – the Moravian Business College Olomouc offering education in economics, and the College of Logistics focused on education in logistics

OPPORTUNITIES THREATS Political/Legislative Influence ● The presently set conditions for financing of innovation processes in ● The risk of change in the perception of the importance of innovations the Olomouc Region from operational programmes and their efficient by the political representatives of the region utilization Economic/Financial Influence

45 ● The potential for development of a specialized industrial zone – the ● The strong dependence on the public sector (the biggest employers in Technology Park Olomouc-Hněvotín the region are Palacký University Olomouc, the University Hospital in Olomouc, the Olomouc Region, and until recently also the Czech Armed Forces) will continue to be strong ● The region’s economy is strongly dependent on the activities of multinational companies and their demand, many of them being suppliers for automotive; local suppliers are frequently linked to these companies, so should these companies withdraw or should the automotive sector face any trouble, it would have a significant impact on a great number of companies

Social/Demographic Influence

46 ● Establishment of new study fields at universities in the region reflecting ● Demographic development will continue to cause a decrease in the the changes on the labour market and the employers’ needs number of graduates; even the present graduates show decreasing willingness to work and professionally develop; it is frequently difficult to find a suitable worker ● New high-quality opportunities for spending leisure time will increase ● Lower attractivity of the region and the increasing mobility may cause the attractivity of the Olomouc Region – the education centre Fortress not only a lack of new top professionals, but also the withdrawal of of Knowledge also increases the interest and motivation concerning the the present ones (the number is low, but accumulated over a longer study of technical fields term, it presents a significant problem) – work conditions in Brno and Ostrava will remain much more convenient and the outflow of employees and students from the region will continue

● Establishment and development of study fields based on the so-called ● An outflow of educated individuals from the region creative industries and on the demand of graduates of the particular fields

Technological Influence

47 ● The increasing number of development centres of foreign companies ● Underestimating the development of the basic technical with branches in the Olomouc Region infrastructure which will not meet the future demands (Internet connection, energy network, etc.)

● Emerging fields that will enable a greater engagement of science and research outputs of Palacký University and the local companies – e.g. special pumping devices for medical applications ● Strengthening of companies’ collaboration with Palacký University Olomouc ● Support of the transfer of research results into the practice ● Development of study fields and establishment of new ones in reaction to technology trends (e.g. Industry 4.0, Optics and photonics, bioinformatics, or Smart Cities)

48 7. Methodology for Elaboration of the Regional Annex to the National RIS3 Strategy for the Olomouc Region The elaboration of the Regional Annex followed the unified methodology, and the work was coordinated by the Office of the Government of the Czech Republic and the Ministry of Education. In the year 2013, several dozen meetings were arranged with important subjects including companies as well as regional partners, where the concept of RIS3 and the opportunities for engagement in its preparation and the subsequent implementation were communicated. On 20 December, 2013, a draft of the Regional Annex to the National RIS3 Strategy for the Olomouc Region was submitted to the National Facilitator, containing analyses and a proposal part based on the effective Regional Innovation Strategy for the Olomouc Region from the year 2011. This draft was subsequently widely discussed. It was sent to almost 150 most prominent companies in the Olomouc Region and the regional partners. The draft was discussed at the Regional Development Committee of the Olomouc Region and was presented to the Board of the Olomouc Region. On 11 February, 2014, the draft of RIS3 for the Olomouc Region and the general conception of RIS3 was presented to more than 60 representatives of businesses, colleges and universities, and the professional public of the Olomouc Region. The participants were encouraged to comment on the first draft of the Regional Annex to the National RIS3 Strategy for the Olomouc Region; they were acquainted with the outline of further work on its completion and offered membership in the innovation platforms and the Regional Innovation Council. The outputs from three workshops organized on 11 February, 2014, and the more than 70 comments and suggestions received subsequently were used to update the abovementioned draft. The updated draft of the Regional Annex to the National RIS3 Strategy for the Olomouc Region was the basis for the first brainstorming of innovation platforms taking place on 28 February at the Palacký University Olomouc Science and Technology Park. Comments and suggestions from this wide discussion were reflected in the final version of the Regional Annex to the National RIS3 Strategy for the Olomouc Region. The Regional Annex to the National RIS3 Strategy for the Olomouc Region was discussed by the Regional Innovation Council at its meeting on 13 May, 2015, and subsequently approved by the Council of the Olomouc Region on 20 June, 2014. The Regional Annex to the National RIS3 Strategy for the Olomouc Region and its objectives are executed based on annual action plans approved by the Regional Innovation Council. Since 2016, the action plans are implemented particularly through the project Smart Accelerator of the Olomouc Region. The first update and adjustment of the name to the RIS3 Strategy for the Olomouc Region took place in 2018. In the analytical part, newly available statistical data and relevant information related to the topic of RIS3 in the Olomouc Region were included, the names of vertical specializations were more closely specified, and indicators of strategic goals were adjusted. The update was done as a part of the implementation of the project Smart Accelerator of the

49 Olomouc Region, which elaborated the update under the supervision of the RIS3 Manager for the Olomouc Region. The updated RIS3 Strategy for the Olomouc Region was discussed by the Regional Innovation Council at its meeting on 18 May, 2018, and subsequently approved by the Council of the Olomouc Region on 25 June, 2018.

8. Specialization of the Region –RIS3 Domains Aside industrial chemistry, the specialization domains of the Olomouc Region are based on the domains defined in the National RIS3 Strategy. The following part of the document provides more detailed information on (some of) the individual specialization domains of the Olomouc Region.

Machinery and Electrotechnical Industry The main products are automotive, machine tools, technical ceramics, soft magnetic ferrite products, powder metallurgy, diamond tools, electric motors and alternators, white goods, etc. The annual turnover of the biggest companies reaches tens of milliards CZK, the sector employs thousands of workers, and 90 % of the production is intended for export.

Optics and High-Precision Mechanics, Optoelectronics The area involves products within the entire value chain in optics, optomechanics, photonics, optoelectronics and high-precision mechanics, including the related production, observation and targeting devices for day and night vision, lighting and imaging systems for industrial applications, lighting technology for automotive, digital projection, semi-conductor industry, modern optical elements and technologies, and medical diagnostic devices. The export markets are the EU, Switzerland, the USA, Israel, and Asia. The export volume exceeds 17 milliard CZK; the number of direct jobs exceeds 6,000. The expenditures on development include more than 100 million CZK annually on operating development expenses, and the investment into high-tech technologies exceeding 150 million CZK annually.

50 Industrial Chemistry The area concerns chemical production with the export markets being the EU and the USA. The export volume exceeds 3 milliard CZK and the sector employs 2,000 workers. The expenditures on science and research and the investment into high-tech technologies amount to about 300 million CZK annually.

Pumping and Water Management Technology The area involves pumping devices, systems for fluid transport, water management facilities, membrane technology, and wastewater treatment plants. Its turnover exceeds 4 milliard CZK, it employs more than 4,000 workers, and the export equals 95 %.

Biomedicine, Life Science and Health Care At present, biomedicine and Life Science create 12 % of the Olomouc Region’s GDP with the export potential and employ around 10 % of its inhabitants. The area involves especially health services, pharmacy, biotechnologies, chemical and biological analyses in the GMP, GLP and GCP regimes, specific analysing methods for medical substances and pharmaceutical products, bioinformatics and medical informatics, etc. The field also associates the key research, development and education capacities of the region (Palacký University Olomouc, the University Hospital in Olomouc, the Military Hospital Klášterní Hradisko, AGEL, etc.). The indicative definition of these fields used statistical data on the field-related amount of export and expenses on science and research according to the available science and research infrastructure in the Olomouc Region, and its contribution to the region’s employment, revenues and GDP.

Software Development Information technologies, especially the area of software development, are a new part of the creative industries. In the Olomouc Region, this area is dynamically developing. Its specific feature is a higher proportion of small businesses and micro-businesses. The number of subjects is estimated to 130 and their turnover is estimated to about 1.6 milliard CZK.

51 Emerging Fields The science and research infrastructure and the starting collaboration of the local companies with this infrastructure enable identification of the following newly emerging fields where the future development is expected although they do not have any support in the statistical data yet.

Advanced Agricultural Technologies for Sustainable Development o Development and production of modern agro-chemicals o Breeding of new varieties with increased resistance or enabling the utilization of plants as a platform for production of various substances o Utilization of new substances in tissue cultures o Development and production of new substances and products for protection and enhancement of skin properties and dental hygiene o Utilization of plant derivatives and extracts with anti-microbial, protective, antioxidant and detoxification properties (e.g. biotechnology, breeding) – the Haná region, following research at Palacký University Olomouc and other research organizations and companies’ research departments.

New Materials and Technologies o Treatment of groundwater, wastewater and surface water; environmental technologies o Technologies for protection of cultural monuments o Advanced separation methods in food industry and biotechnology o Advanced chemical analyses with the GMP certification o Nanotechnology for authenticity protection of liquid products o New methods in anti-microbial protection of surfaces base on nano/biotechnology o Anti-microbial materials for application in cosmetics, food supplements and medicine o Advanced diagnostics using nanotechnology o Nanomaterials for application in building and energy industries, sustainable energy sources o Development of new types of magnets based on nanomaterials

52 Proposal Part

9. Vision “Support for competitiveness enhancement of the regional economy and creation of highly qualified jobs for development of innovation business and excellence research in the region.”

10. Key Change Areas The following three key change areas have been identified:

Key Change Area A: Better Availability and Qualification of Workforce for Innovations Key Change Area B: Regional System of Technology Transfer Support Key Change Area C: High-Quality Services and Support for Innovative Companies in Key Areas/Value Chains of the Region

The key change areas consist of the individual strategic goals; these involve particular specific goals. For every strategic goal/key change area, proposals for indicators measuring its fulfilment are determined; for every specific goal, examples of the possible tools (type activities/projects/operations) are set through which the specific goals will be fulfilled, thus achieving also the strategic goals. The key change areas, strategic goals and specific goals, as well as examples of the possible tools were discussed at the first meeting of innovation platforms Better Availability and Qualification of Workforce for Innovations, the Regional System of Technology Transfer Support, and High-Quality Services and Support for Innovative Companies in Key Areas/Value Chains of the Region in 2014, when the first version of the Regional Annex to the National RIS3 Strategy for the Olomouc Region was created. The possible tools for fulfilment of the goals of the Regional Annex to the RIS3 Strategy were verified in the course of implementation of the project Smart Accelerator of the Olomouc Region and subsequently discussed at a meeting of the Regional Innovation Council of the Olomouc Region.

53 Key Change Area A: Better Availability and Qualification of Workforce for Innovations The export performance of the Olomouc Region is ensured especially by companies active in processing industry. The prosperity of these companies is created by their employees, so the quality of human resources is a prerequisite for development of knowledge and innovation business. Companies encounter a lack of employees, especially technically-oriented ones, in the entire education scale (apprentices, secondary-school students, and university students). The current economic boom has even accentuated this fact. The education system is not set so as to meet the needs of employers from the region (the employers’ need is not quantified), although in the recent years, steps have been made to improve many of the issues described below. The curricula lack content focused on acquisition of key competences in the field of technical education. The popularisation of technical fields, handicrafts, and natural sciences is low. As to apprenticeship education, there is either a complete lack of graduates from some fields, or the graduates are not able to work in the fields without further extensive training. The students do not have sufficient information concerning companies in the region and the employment opportunities after graduation. The region lacks a technical university. While it is not a prerequisite for ensuring graduates from a technically-oriented university, it might decrease the interest of secondary-school students in technical fields. There is a missing link between the technically-oriented secondary schools and a university within the region. There are technically-oriented secondary schools in the region; however, to achieve further education, their graduates need to leave the region, and some of them do not return into the region after achieving the university education. Another problematic issue is that the graduates of technical secondary schools do not remain in the particular field. The outflow of graduates, talented individuals and top professionals from the region is not compensated for by an inflow of talents and professionals from other regions and from abroad, the frequent reason being fewer employment opportunities or lower incomes offered. The local companies are forced to compete over an insufficient number of talents available. It is therefore necessary to increase the number of highly talented people coming to live, work and study in the Olomouc Region, and to increase the quality of services enhancing the attractivity and preparedness of the region and its metropolis for long-term residence of top foreign professionals and managers. High-quality foreign students and researchers also frequently become a crucial impulse and an example for the personal commitment of people in their immediate vicinity. Another problematic issue is the long-term tradition/habituality of “ways of thinking, values and behavioural patterns” which do not create a social environment supporting entrepreneurship, innovations and a positive approach towards work. In addition, another area that must not be omitted is increasing the competences and knowledge of key workers in innovation companies and supporting the transfer of their knowledge and competences within the entire company.

54 The target condition is an optimal offer of qualified workforce: secondary -school and university graduates and graduates of technical schools with qualifications appreciated by the employers, aware of technological trends, and with universal focus, easily employable; the communication among companies and secondary-school students is fluent; and the Olomouc Region is an attractive place for life which facilitates acquisition of top talents.

55

Key Change Area A: Better Availability and Qualification of Workforce for Innovations Strategic Goals in Key Change Area A Indicators of Strategic Goals/Key Change Area A.1 Increasing the number of high-quality graduates of technical ● The proportion of pupils of technical fields at secondary schools in full-time study secondary school fields in the Olomouc Region A.2 Increasing the availability and quality of key employees and ● The number of individuals participating in events for entrepreneurship support talented individuals ● The number of projects such as Knowledge Transfer Partnership ● The number of employees in science and research in the business sector within the Olomouc region ● The number of employees in science and research in the governmental sector within the Olomouc region ● The number of employees in science and research in the university sector within the Olomouc region ● The number of employees in science and research in the private non-profit sector within the Olomouc region Strategic Goal A.1 Increasing the number of high-quality graduates of technical secondary-school fields An adjustment shall be made to the offer of technically oriented secondary schools. The schools shall closely cooperate with companies. Popularization of technical education shall result in an increased amount and quality of study applicants. Students shall be supported in developing entrepreneurial thinking. All these steps shall result in a sufficient number of high-quality graduates of technical secondary schools – employees for innovative companies.

Specific Goals Type Activities/Projects/Operations of the Specific Goal

56 A.1.1 Extension of cooperation between schools and companies ● Analysis of graduates and the needs of companies within the Olomouc Region ● Paid professional traineeships for students in the last year of secondary schools ● Student projects in companies – compulsory projects for secondary school students elaborated in companies, student team projects (addressing complex topics assigned by companies) ● Internships in companies for teachers of specialized subjects at technical secondary schools ● Bachelor’s/Master’s theses – assistance with identification of topics ● Support of cooperation between schools and companies when creating curricula/degree programmes A.1.2 Implementation of innovative approaches in education at ● Continuous testing of students primary and secondary schools ● Shared workshops ● Technical English at secondary schools – enhancing teaching of English focused on technical terminology and the ability to communicate, organizing competitions focused on presentation of a topic in English, teaching some subjects in English already at secondary schools, internships in international companies with English as a lingua franca

57 A.1.3 Increasing the popularity of technical education at the basic ● Natural sciences as a game – extracurricular activities developing education in levels of education technology and natural sciences (“Playful Maths”, “Chemistry Olympiad”), projects such as the Fortress of Knowledge, science and technology summer camps for primary-school pupils and science and technology summer schools for secondary- school students ● Internships and training for career advisory workers at schools (educational counsellors) ● Students to children – discussions conducted by secondary-school and university students with primary-school pupils with the aim to motivate them for study at technical secondary schools ● Excursions into companies – excursions of kindergarten pupils into innovative companies, topic-oriented excursions of primary-school pupils (demonstrations of a production programme, definitions from Physics and Maths in practice) ● Regional business – enhancing the dissemination of information on successful companies in the region to the education sector as well as general public A.1.4 Increasing the number of individuals starting a business in the ● Entrepreneurial students particular fields (with high added value) and increasing the interest ● Competitions and other activities connected to support of entrepreneurship at of children in business and establishment of their own company students of primary and secondary schools Strategic Goal A.2 Increasing availability and quality of key employees and talented individuals Graduates of technically-oriented universities shall return to live and work in the Olomouc Region. In addition, acquisition of top managers and research workers shall be facilitated; these can help develop innovations in companies and research institutions of the Olomouc Region.

Specific Goals Type Activities/Projects/Operations of the Specific Goal

58 A.2.1 Preventing the outflow of talented individuals from the region ● Company scholarships, traineeships, internships and part-time jobs and increasing their inflow ● Specialized scholarships and internships in companies ● Attracting top research workers including foreign ones ● Attracting foreign students for Doctoral degree programmes ● New degree programmes at universities within the region ● Individualized programmes for development of individuals with extraordinary entrepreneurial talent, technical talent or talent for research and development work ● Attracting students through popularization activities and the scholarship offer ● “The Olomouc Region – the Region for Life” – a complex document presenting the Olomouc Region as a good place for life, promotion of the opportunities for cultural and sports activities ● Support of highly qualified foreigners (especially in technical professions) in working in the Olomouc Region A.2.2 Increasing the competences and knowledge of key employees ● Company specialization studies ● Education vouchers – support of education (even internal) in companies ● Regular specialized courses and seminars focused on selected fields – presence form or webinars ● New specialized interdisciplinary technically-oriented study fields at the local universities that may be the basis for “Faculties of Technology” providing the education required by the local innovative companies Prerequisites and obstacles for implementation of interventions in this key change area: A prerequisite is setting intervention tools actually reflecting the needs of companies in the Olomouc Region, easy usability of these tools for companies, and their sufficient promotion (relevance, simple form, availability).

59 Key Change Area B: Regional System of Technology Transfer Support The key area Regional System of Technology Transfer Support focuses particularly on improving the conditions and processes influencing the utilization of outputs of public research conducted by science and research institutions in the Olomouc Region for innovative business and activities. The goal is extending the scope and increasing the intensity of cooperation and knowledge transfer between the academic sector and companies in the region, and motivation of both the companies and the academic staff for mutual collaboration. Despite that fact that numerous companies innovate their products, their production is frequently placed at the lower levels of the value chain (suppliers’ suppliers), so their innovations are especially those based on imitation and adopting somebody else’s know-how, or their incorporate only small process and marketing innovations. The companies therefore do not feel the need to collaborate with universities and start their own development (innovation) projects. Only few local companies base their competition advantage on innovations derived from their own know-how. The business activities of a great majority of these companies are outside the main research specializations of Palacký University Olomouc, so these companies need to search for potential cooperation partners outside the region, prevalently in Brno and Ostrava. The establishment of cooperation with scientific and research subjects is perceived by many companies as difficult, so it is necessary to offer assistance services in order to start and successfully maintain mutual cooperation. The interlinkage of the individual fields may give rise to untapped opportunities based on outputs from regional research and development centres at Palacký University (The Centre of the Region Haná for Biotechnological and Agricultural Research, The Regional Centre of Advanced Technologies and Materials, and The Institute of Molecular and Translational Medicine). The capacity of the local business sector for commercial utilization of the research outputs from Palacký University Olomouc is limited, and it is necessary to support utilization of research and development outputs even outside the region. The demand for cooperation may also be strengthened by extending the activities of local branches of international companies and those resident outside the region, procuring specific types of direct foreign investments, and incubating new companies. Especially starting companies find it very difficult to manage the first phase of verification of commercial usability of new technologies, and to procure funding for this activity. That is why they welcome activities helping companies with financing of the initial phases of collaboration with science and research institutions, and providing assistance with implementation of technology transfer and introducing the outputs from science and research on the market. The goal is to increase the economic utilization of knowledge achieved in research institutions of the region, and to increase economic benefits of public research and increase the number of companies’ development projects successfully established on the market.

60

Key Change Area B: Regional System for Technology Transfer Support Strategic Goals in Key Change Area B Indicators of Strategic Goals/Key Change Area B.1 Increasing economic benefits of knowledge created by the ● The volume of contractual research of research institutions in the Olomouc Region region’s research organizations ● The number of newly concluded license agreements of research institutions in the B.2 Increasing innovation performance of companies Olomouc Region (or established spin-offs) ● The number of newly achieved international science and research projects with participation of companies ● The number of companies from the Olomouc Region participating in selected projects of contractual research ● The number of participants in matchmaking events Strategic Goal B.1 Increasing economic benefits of knowledge created by the region’s research organizations The results shall be better economic utilization of knowledge created in the Olomouc Region, either through its sale or licensing to companies anywhere in the world, or through the establishment of new companies or branches of existing companies that will utilize the knowledge.

Specific Goals Type Activities/Projects/Operations of the Specific Goal B.1.1 Increasing utilization of science and research results from public ● UPOL workplace for technology transfer research institutions in the Olomouc Region ● Fund for commercialization – PROOF-OF-CONCEPT ● Internal student competitions for starting entrepreneurs utilizing the intellectual property of the university, and support of establishment and development of such companies ● Motivation for commercialization – systematic education of academic staff regarding commercialization of science and research results ● Internships for academic staff in companies within the joint research projects, summer schools for academic staff

61 ● Networking and exchange of experience among the individual research infrastructures in the Czech Republic as well as abroad

Strategic Goal B.2 Increasing innovation performance of companies The decrease in risks related to innovations requiring investments into research and development shall lead to companies implementing a greater number of innovation projects. The extent and intensity of collaboration between companies and research institutions as well as among the individual companies shall increase. The companies shall have greater awareness as to where to search for the necessary knowledge, and its acquisition shall be easier. The participation in international projects shall be increased.

Specific Goals Type Activities/Projects/Operations of the Specific Goal B.2.1 Increasing the motivation of companies to take the risk and ● Innovation Vouchers in the Olomouc Region implement innovation projects ● Knowledge Transfer Partnership ● Pilot plant production premises for verification – Competence Centres ● Regional proof-of-concept fund and seed-fund ● Development worker for a trial period ● Paid internships for Ph.D. students – allowances to Ph.D. students for their internships/work in companies or for work on their Diploma theses in remote regions

62 B.2.2 Establishing and coordinating cooperation among companies ● A catalogue of innovation companies and their cooperation with research institutions ● Matchmaking events ● The Regional Center for Technology Transfer B.2.3 Increasing engagement of companies and research institutions ● Assistance with searching for partners and project topics for HORIZON 2020 or in international research projects other programmes

Prerequisites and obstacles for implementation of interventions in this key change area: The essential prerequisite is the existence of a technology transfer centre with high-quality personnel and a stable budget. Another very important prerequisite is the willingness of universities to collaborate with the industry sector, even though they are already required to fulfil the so-called “third role of universities” even by the MEYS. Also, an important prerequisite is the extent of demand for these services on the part of companies from the Olomouc Region, which shall have an increasing tendency.

63 Key Change Area C: High-Quality Services and Support for Innovative Companies in Key Areas/Value Chains of the Region A typical feature of the Olomouc Region’s economy is a very low proportion of the so-called high-tech and medium high-tech fields/companies where innovations are driven especially by the offer of new knowledge and technology. The region’s economy is highly dependent on the activities and demand of multinational companies (not only from the Olomouc Region). A great number of companies only fulfil the tasks assigned by these companies in the value chain. A big proportion of the local economy’s export thus depends on the entrepreneurship of foreign companies assigning work to the local suppliers. Innovations in these companies are linked to research to a much lesser extent, and they are characterized by continuous small improvements required by the consumer rather than quantum leaps regarding the improvement of the parameters of existing products or development of new ones. In traditional companies, innovations are mostly not based on utilization of new findings from science and research; many innovations implemented in the relevant fields are based on combining the already existing knowledge and technologies. The source of such innovations is an entrepreneur able to recognize new opportunities and manage changes and steps necessary to profit from these opportunities. Especially small and medium businesses lack a sufficient amount of information so as to be able to decide on stimulating the innovation process in their company, nor do they have sufficient experience with management of innovation processes. The purpose of this key area is to support the development of services facilitating this type of innovations, and the increase in the innovation capacity and the subsequent growth of local companies in general. This area involves even services and activities facilitating orientation on the market to the owners and managers, as well as orientation in the coming trends and in technological development and its consequences for the particular field. Another aspect provided shall be inspiration regarding management of companies’ strategies and future and the methods of acquisition of new markets. At the same time, the attention is also focused on particular services facilitating implementation of the individual activities related to companies’ innovation processes. Well-established companies in the region frequently suffer either from incapability or reluctance regarding further growth, and are often not well-adapted and equipped with competences so as to make use of new opportunities in new fields. It is therefore convenient to create conditions for establishment of companies in new fields with a high potential for growth and creation of new high-quality job opportunities – this applies to newly established companies and newly implemented projects of existing companies, as well as attracting foreign companies. These steps shall lead to the increase in demand for innovations as a result of an increased number of local entrepreneurs building the competition advantage of their companies on innovations, as well as the support of the selected types of investments that shall generate sophisticated demand and thus even innovations.

64

Key Change Area C: High-Quality Services and Support for Innovative Companies in Key Areas/Value Chains of the Region Strategic Goals in Key Change Area C Indicators of Strategic Goals/Key Change Area C.1 Increasing companies’ competitiveness based on innovations ● The number of companies making use of special counselling C.2 Increasing the number of newly established innovative companies ● The number of technological platforms in the Olomouc Region and developing their activities ● The number of clusters in the Olomouc Region ● The number of companies from the Olomouc Region participating in the technological platforms ● The number of companies form the Olomouc Region participating in clusters ● The number of companies making use of the services of the Olomouc Region support infrastructures

Strategic Goal C.1 Increasing companies’ competitiveness based on innovations High-quality counselling services and inputs enabling development of innovations shall be available to companies.

Specific Goals Type Activities/Projects/Operations of the Specific Goal C.1.1 Facilitating the access to specialized information and services for ● Top consultants for innovations development of innovations in companies ● A web navigator for subsidies ● A knowledge database and elaboration of professional reviews C.1.2 Facilitating the access to foreign markets for innovative ● A shared fair exhibition space/business mission companies ● Subsidies for technical implementation of design, if the design change also incorporates product innovation ● Promotion of local companies by the Olomouc Region’s authorities at foreign missions and fairs and on the Internet Strategic Goal C.2 Increasing the number of newly established innovative companies and developing their activities The Olomouc Region shall have a functioning system for support of establishment and development of innovative businesses.

65 Specific Goals Type Activities/Projects/Operations of the Specific Goal C.2.1 Increasing the number of newly established innovative ● Incubation programme for knowledge-based companies companies ● Creative vouchers C.2.2 Achieving external investments utilizing the expertise in the ● Pro-active policies to attract desirable types of direct foreign investments to the region vertical specialization of the Olomouc Region, and support of their ● A database of the region’s industrial zones growth ● Aftercare

Prerequisites and obstacles for implementation of interventions in this key change area: The key prerequisite is identification of high-quality providers of the abovementioned services. This, along with sufficient communication concerning the individual activities shall help eliminate a significant barrier – the companies’ mistrust in such services.

66 11. Implementation Structure in the Olomouc Region

Regional Innovation Council (KRI) The Council ensures management and monitoring/evaluating functions concerning the implementation of the RIS3 Strategy in the region. The members of the Regional Innovation Council are main stakeholders in the Olomouc Region with an informal predominance of representatives from companies, so the Regional Innovation Council also ensures the consultancy function regarding the implementation of the RIS3 Strategy. This function is also fulfilled by two innovation platforms active in the Olomouc Region: the working group Education, and Innovation Experience. The Regional Innovation Council was established by the Board of the Olomouc Region on 20 March, 2014. At present, KRI has 25 members. The current list of members (organizations) or the Regional Innovation Council is provided in the following table:

Organization Representative Position Head of Regional Offices Business and Innovation Agency Ing. Lenka Gondová Department AGRITEC, Research, Breeding and Services Ltd. Ing. Zdeněk Muroň Secretary Agroresearch Rapotín Ltd. Ing. Ondřej Kopp Secretary HELLA AUTOTECHNIK NOVA Ltd. dipl. Ing. Karel Bill Technical Director Koyo Bearings Czech Republic Ltd. Petr Novák, MBA Secretary Chamber of Commerce of the Olomouc Region Ing. Bořivoj Minář Chairman doc. MUDr. Marián Hajdúch, MedChemBio Ph.D. Meopta - optika, Ltd. Ing. Vítězslav Moťka Secretary National Accreditation Bureau for Higher Education JUDr. Ivan Barančík, Ph.D. Deputy Chairman Deputy Chairman of the OK4Innovation Ing. Jiří Rudolf Managing Board

67 Head of the School and Youth Department of the Olomouc Region Mgr. Miroslav Gajdůšek, MBA Regional Authority of the Olomouc Region Olomouc Region Bc. Pavel Šoltys, DiS. Deputy Governor Research and Development Pramet Tools Ltd. Ing. Vladimír Maixner, MBA Director PRECHEZA Inc. Mgr. Tomáš Světnický, MBA HR Director Head of Project PRO-BIO, trading company Ltd. Mgr. Pavel Department Siemens Ltd., branch Elektromotory Mohelnice Ing. Pavel Pěnička Director Director of the Hydraulics SIGMA GROUP Inc. Ing. Jiří Šoukal, CSc. Research Centre Statutory City of Olomouc RNDr. Ladislav Šnevajs Deputy Mayor Regional Manager of the Confederation of Industry Confederation of Industry of the Czech Republic Mgr. Richard Koubek for the Olomouc Region, the Region and the Zlín Region Chairman of the Board of TESCO SW Inc. RNDr. Josef Tesařík Directors prof. RNDr. Miroslav Mašláň, Palacký University Olomouc CSc. The Labour Office of the Czech Republic, the Regional Ing. Jiří Šabata Director Office in Olomouc ÚSOVSKO Inc. Ing. Jiří Milek Vice-Rector for Applied College of Logistics o.p.s. Ing. Libor Kavka, Ph.D. Research and Project Management

68 ZLKL Ltd. Ing. Ladislav Brázdil Secretary

Executive Function of Implementation of the RIS3 Strategy in the Region Since 2016, the executive function concerning the implementation of the RIS3 Strategy has been ensured in the region particularly through implementation of the project Smart Accelerator of the Olomouc Region, conducted in a partnership with the association OK4Innovation which plays the role of a so-called executive unit responsible for the prevalent part of implementation of the project’s substantive activities. The executive unit also incorporates the RIS3 Manager as a key person guaranteeing implementation of the RIS3 Strategy in the region.

69 Attachment: Data Documents

Number of Economic Subjects according to CZ-NACE Classification of Activities (listed in the order of the share of the Olomouc Region in %)

Data Share of as of ACTIVITY SECTOR Czech Republic Olomouc Region the OR 31 Dec, CZ-NACE in % 2016

TOTAL 2,807,532 140,735 5.01% Not specified 81,180 5,255 6.47% 12 Manufacture of tobacco products 17 2 11.76% 11 Manufacture of beverages 4,989 583 11.69% 02 Forestry and logging 11,464 926 8.08% 05 Mining of coal and lignite 26 2 7.69% 39 Remediation activities and other waste management services 26 2 7.69% 30 Manufacture of other transport equipment 1,296 89 6.87% 87 Residential care activities 1,108 73 6.59% 31 Manufacture of furniture 14,263 931 6.53% 84 Public administration and defence; compulsory social security 15,651 1,014 6.48% 86 Human health activities 30,212 1,943 6.43% 64 Financial service activities, except insurance and pension funding 25,240 1,595 6.32% Manufacture of fabricated metal products, except machinery and 25 85,837 5,390 6.28% equipment 22 Manufacture of rubber and plastic products 5,493 342 6.23% 24 Manufacture of basic metals 1,854 114 6.15% 14 Manufacture of wearing apparel 34,443 2,114 6.14%

70 66 Activities auxiliary to financial services and insurance activities 71,485 4,356 6.09% 77 Rental and leasing activities 6,824 414 6.07% 95 Repair of computers and personal and household goods 29,171 1,760 6.03% 01 Crop and animal production, hunting and related service activities 111,643 6,636 5.94% 41 Construction of buildings 106,613 6,225 5.84% Manufacture of wood and of products of wood and cork, except 16 29,362 1,704 5.80% furniture; manufacture of articles of straw and plaiting materials 42 Civil engineering 1,614 93 5.76% 94 Activities of membership organizations 90,154 5,135 5.70% 93 Sports activities and amusement and recreation activities 55,548 3,159 5.69% 75 Veterinary activities 3,660 206 5.63% 56 Food and beverage service activities 128,948 7,229 5.61% 33 Repair and installation of machinery and equipment 27,331 1,498 5.48% 49 Land transport and transport via pipelines 60,333 3,264 5.41% 20 Manufacture of chemicals and chemical products 2,736 146 5.34% 15 Manufacture of leather and related products 1,072 57 5.32% 36 Water collection, treatment and supply 1,041 55 5.28% Wholesale and retail trade and repair of motor vehicles and 45 57,150 3,009 5.27% motorcycles 27 Manufacture of electrical equipment 16,504 857 5.19% 28 Manufacture of machinery and equipment n.e.c. 6,128 318 5.19% 85 Education 45,296 2,346 5.18% 43 Specialized construction activities 212,316 10,901 5.13% 96 Other personal service activities 101,174 5,140 5.08% 10 Manufacture of food products 18,638 929 4.98% 37 Sewerage 323 16 4.95% 69 Legal and accounting activities 86,424 4,156 4.81% 46 Wholesale trade, except of motor vehicles and motorcycles 366,869 17,581 4.79% Architectural and engineering activities; technical testing and 71 59,495 2,796 4.70% analysis 32 Other manufacturing 18,371 860 4.68%

71 Waste collection, treatment and disposal activities; materials 38 8,992 419 4.66% recovery 35 Electricity, gas, steam and air conditioning supply 18,251 846 4.64% 72 Scientific research and development 1,791 83 4.63% 17 Manufacture of paper and paper products 1,536 70 4.56% 29 Manufacture of motor vehicles, trailers and semi-trailers 1,185 54 4.56% 08 Other mining and quarrying 617 28 4.54% 61 Telecommunications 1,279 58 4.53% 90 Creative, arts and entertainment activities 10,545 472 4.48% 23 Manufacture of other non-metallic mineral products 11,759 522 4.44% 52 Warehousing and support activities for transportation 7,735 343 4.43% 55 Accommodation 16,205 706 4.36% 80 Security and investigation activities 6,777 290 4.28% 13 Manufacture of textiles 3,544 150 4.23% 91 Libraries, archives, museums and other cultural activities 750 31 4.13% 03 Fishing and aquaculture 571 23 4.03% 63 Information service activities 5,932 234 3.94% 81 Services to buildings and landscape activities 11,093 436 3.93% 47 Retail trade, except of motor vehicles and motorcycles 212,853 8,359 3.93% 74 Other professional, scientific and technical activities 140,414 5,508 3.92% 92 Gambling and betting activities 704 27 3.84% Manufacture of basic pharmaceutical products and pharmaceutical 21 105 4 3.81% preparations 73 Advertising and market research 32,336 1,218 3.77% 70 Activities of head offices; management consultancy activities 27,149 1,012 3.73% 26 Manufacture of computer, electronic and optical products 2,801 104 3.71% 68 Real estate activities 163,158 6,011 3.68% 88 Social work activities without accommodation 2,459 86 3.50% 78 Employment activities 1,352 45 3.33% Office administrative, office support and other business support 82 12,617 405 3.21% activities 60 Programming and broadcasting activities 188 6 3.19%

72 58 Publishing activities 8,409 258 3.07% Travel agency, tour operator and other reservation service and 79 11,869 352 2.97% related activities 62 Computer programming, consultancy and related activities 36,516 1,007 2.76% Motion picture, video and television programme production, sound 59 4,151 109 2.63% recording and music publishing activities 53 Postal and courier activities 478 10 2.09% 18 Printing and reproduction of recorded media 11,480 221 1.93% 50 Water transport 163 3 1.84% 19 Manufacture of coke and refined petroleum products 61 1 1.64% 51 Air transport 67 1 1.49% Insurance, reinsurance and pension funding, except compulsory 65 106 1 0.94% social security 09 Mining support service activities 134 1 0.75% 06 Extraction of crude petroleum and natural gas 6 0 0.00% 07 Mining of metal ores 11 0 0.00% Undifferentiated goods- and services-producing activities of private 98 1 0 0.00% households for own use 99 Activities of extraterritorial organizations and bodies 60 0 0.00% 97 Activities of households as employers of domestic personnel 0 0 0.00% Source: Czech Statistical Office

73 Priority CZ-NACE Categories in the Olomouc Region Share of Considered priority CZ- Revenues of the industry field the field Number of employees in the field NACE categories – Number of economic subjects – in million CZK (companies over on total (companies over 100 employees) importance in the 100 employees) GDP Olomouc Region 2016 As of 31 December, 2016 2016 2016 Category according to Share % Share % in Share % in Share % CZ OR CZ OR CZ OR CZ-NACE in OR OR OR in OR 10 manufacture of food 4.76% 18,638 929 4.98% 54,395 3,538 6.50% 161,575 10,469 6.48% products 11 Manufacture of 2.26% 4,989 583 11.69% 8,951 669 7.47% 49,905 4,960 9.94% beverages 20 manufacture of chemicals and chemical 1.38% 2,736 146 5.34% 20,761 1,100 5.3% 101,203 3,026 2.99% products 24 Manufacture of basic 2% 1,854 114 6.15% 38,609 1,438 3.72% 144,822 4,396 3.04% metals 25 Manufacture of fabricated metal products, 5.76% 85,837 5,390 6.28% 76,942 5,579 7.25% 175,291 12,663 7.22% except machinery and equipment 26 Manufacture of computer, electronic and 2.21% 2,801 104 3.71% 33,749 3,495 10.36% 281,275 4,854 1.73% optical products 27 Manufacture of 12.84% 16,504 857 5.19% 74,631 8,130 10.89% 217,468 28,245 12.99% electrical equipment 28 Manufacture of machinery and equipment 6.84% 6,128 318 5.19% 87,967 5,821 6.62% 239,064 15,040 6.29% n.e.c.

74 29 Manufacture of motor vehicles, trailers and semi- 3.35% 1,185 54 4.56% 156,354 2,234 1.43% 1,123,843 7,374 0.66% trailers 30 Manufacture of other 3.91% 1,296 89 6.87% 19,583 2,961 15.12% 54,919 8,604 15.67% transport equipment Total – considered priority 2.09% 141,968 8,584 6.05% 571,942 34,965 6.11% 2,549,365 99,631 3.91% CZ-NACE categories Total – all CZ-NACE 4.61% 2,807,532 140,735 5.01% 831,462 46,531 5.60% 3,430,397 128,715 3.75% Total – considered priority 45.31% - - 59.96% - - 74.67% - - 66.99% CZ-NACE categories in OR

Source: Elaborated from the data of the Czech Statistical Office

75 Share of the Fields on Employment Share of the Fields on Revenues

Share of employees in other fields Revenue share of other fields 25,33% 33,01%

Revenue share of priority Share of fields employees in 66,99% priority fields 74,67%

76

Share of Priority CZ-NACE Fields on GDP in the Olomouc Region

10 Manufacture of food products 30 Manufacture of other 4,76% transport equipment 3,91% 11 Manufacture of beverages 2,26%

29 Manufacture of motor 20 Manufacture of vehicles, trailers and semi- chemicals and chemical trailers products 3,35% 1,38%

28 Manufacture of 24 Manufacture of basic machinery and equipment metals n.e.c. 2% 6,84%

25 Manufacture of fabricated metal products, except machinery and equipment 5,76%

27 Manufacture of electrical equipment 26 Manufacture of 12,84% computer, electronic and optical products 2,21%

77 Shares on GDP in 2016

9,8 Hlavní město Praha

4,8 25,0 Středočeský kraj Jihočeský kraj 4,6 Plzeňský kraj Karlovarský kraj Ústecký kraj Liberecký kraj 10,8 Královéhradecký kraj Pardubický kraj 11,6 Kraj Vysočina 4,0 Jihomoravský kraj

3,9 Olomoucký kraj 5,0 Zlínský kraj 4,6 1,9 Moravskoslezský kraj 5,1 3,2 5,7

Source: Czech Statistical Office

78 Average Registered Number of Employees and Average Gross Monthly Wages in the Second Quarter 20171)

1) Territorial classification is compiled according to the individual’s actual place of employment using the so-called “workplace-based method”. 2) The table includes even employees of the monitored subjects working outside the Czech Republic; that is why the total for the particular region may not correspond to the total for the Czech Republic.

79 Source: Czech Statistical Office

Source: Czech Statistical Office

80 Working Population Aged 25-64 Years according to the Achieved Education and the Region of Habitual Residence in 2015

Source: Czech Statistical Office

81 Structure of Working Population Aged 25-64 Years according to Achieved Education and the Region of Habitual Residence in 2015

Source: Czech Statistical Office

82 Proportion of the Unemployed in the Individual Regions of the Czech Republic as of 30 September 2017 in %

83 Source: Ministry of Labour and Social Affairs

Economic Subjects Active in Science and Research and their Workplaces in the Regions of the Czech Republic

Total, Economic Subjects the CZ Regions 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CZ in total 1,855 1,966 2,021 2,047 2,155 2,392 2,514 2,578 2,568 2,629 2,644 Prague 534 536 569 555 569 608 606 605 617 597 593 Central Bohemian 161 172 179 176 199 215 237 249 251 254 259 South Bohemian 79 77 75 82 86 97 93 100 96 101 101 Plzeň 63 70 72 70 81 86 101 103 91 96 103 Karlovy Vary 15 18 21 20 21 19 21 21 19 23 19 Ústní nad Labem 62 69 73 76 70 81 88 96 92 106 101 Liberec 67 67 70 74 81 82 82 82 91 99 107 Hradec Králové 87 98 105 102 109 126 132 136 130 130 136 Pardubice 81 106 103 102 109 125 132 133 129 126 135 Vysočina 66 74 64 77 78 87 85 85 90 98 103 South Moravian 272 296 299 321 339 394 411 436 424 440 440 Olomouc 88 89 98 95 103 113 121 123 134 142 131 Zlín 118 130 124 126 128 153 167 165 170 172 172 Moravian-Silesian 162 164 169 171 182 206 238 244 234 245 244

84

Total, Science and Research Workplaces the CZ Regions 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CZ Total 2,017 2,142 2,204 2,233 2,345 2,587 2,720 2,778 2,768 2,840 2,870

Prague 584 589 624 612 623 656 657 659 673 656 650

Central Bohemian 168 179 186 184 208 223 245 257 257 263 266

South Bohemian 91 89 89 94 98 110 106 110 108 113 114

Plzeň 74 81 83 81 93 100 116 119 107 113 120

Karlovy Vary 15 18 21 20 22 20 22 22 20 24 20

Ústí nad Labem 70 79 83 86 79 89 99 106 101 115 110

Liberec 74 74 77 81 88 92 93 91 101 113 120

Hradec Králové 93 105 111 108 115 135 141 143 139 139 145

Pardubice 92 118 113 112 121 137 143 144 139 135 145

Vysočina 67 75 66 80 82 89 87 87 92 101 107

South Moravian 294 320 324 346 365 424 448 467 456 467 477

Olomouc 97 99 108 104 113 123 130 134 142 153 144

Zlín 122 136 132 133 136 161 176 173 180 184 184

Moravian-Silesian 176 180 187 192 202 228 257 266 253 264 268

Source: Czech Statistical Office

85 Basic Research and Development Indicators in the Olomouc Region

Science and Research Expenditures on Science and Research (million CZK) Workplaces (number) from that According to Activity Sector Year from that Total Total Public CZ-NACE 72 (1) Wages Business Governmental University Funding

2005 97 11 1,347 520 529 918 31 393 2006 99 9 1,314 530 561 815 36 456 2007 108 11 1,512 627 720 893 47 559 2008 104 9 1,430 643 675 792 55 570 2009 113 10 1,619 743 742 909 75 622 2010 123 10 1,613 836 786 851 27 712 2011 130 10 2,133 1,058 1,035 1,055 25 1,041 2012 134 12 3,558 1,227 1,303 1,205 25 2,319 2013 142 10 3,061 1,407 1,096 1,231 107 1,716 2014 153 12 3,377 1,631 1,246 1,514 25 1,824 2015 144 11 2,983 1,442 1,225 1,491 25 1,457

(1) workplaces with the main economic activity being research and development (CZ-NACE 72)

86

Employees in Science and Research (number) from that According to Activity Sector (FTE) Year Total Women Researchers Business Governmental University HC (2) FTE (3) HC (2) FTE (3) HC (2) FTE (3)

2005 2,925 2,026 1,204 825 1,484 991 1,064 38 920 2006 2,953 2,035 1,211 822 1,503 991 1,090 37 900 2007 3,139 2,011 1,190 781 1,687 1,042 1,133 46 817 2008 3,102 2,020 1,139 736 1,665 1,070 1,112 52 843 2009 3,239 1,993 1,190 694 1,785 1,013 1,112 46 820 2010 3,512 2,156 1,418 822 1,902 1,104 1,109 46 981 2011 3,609 2,331 1,290 798 1,790 1,205 1,164 43 1,107 2012 4,057 2,583 1,483 903 2,260 1,488 1,278 48 1,247 2013 4,525 2,846 1,639 984 2,692 1,721 1,432 41 1,362 2014 4,919 3,129 1,710 1,071 2,948 1,905 1,599 44 1,469 2015 4,744 3,402 1,731 1,246 2,798 1,999 1,538 42 1,814

(2) natural persons; data as of 31 December, 2015 (3) converted into full-time workload in science and research activities

Source: Czech Statistical Office

87