Czech Support for Film Makers 3 2010 Ll a S H Res Cong

MORAVIA-SILESIA REGION CZECH SCIENTISTS DISCOVER A UNIQUE COMPOUND TRANSCRIPTION OF SPONTANEOUS SPEECH HOW TO CONCLUDE LEASE AGREEMENTS UNDER CZECH LAW? CZECH SUPPORT FOR FILM MAKERS 3 2010 LL A S H RES CONG

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CENTRUM BABYLON, NITRANSKÁ 1, 460 12 LIBEREC, PHONE: +420 485 249 202, WWW.BABYLONLIBEREC.CZ CZECH BUSINESS AND TRADE

Czech Business and Trade

Economic Quarterly Magazine with INTRODUCTION a Supplement is Designed for Foreign Questions of the Month for Petr Nečas, Prime Minister of the Czech Republic 4 Partners, Interested in Cooperation with the Czech Republic ECONOMIC POLICY Issued by PP AGENCY s.r.o. in cooperation with Ministry for Regional Development of the Czech Back to Growth 5 Republic Ministry of Industry and Trade of the Czech INVESTMENT Republic Czech Film Industry Support Programme Launched! 7 Ministry of Foreign Aff airs of the Czech Republic The Most Advanced Brickworks in Europe 8 Confederation of Industry of the Czech Republic Confederation of Employers‘ and Entrepreneurs‘ Associations of the Czech Republic LEGISLATION Czech Chamber of Commerce How to Conclude Lease Agreements under Czech Law 9 CzechTrade New Legislation Seeking to Reduce Administrative Burden 10 EDITORIAL BOARD: Michal Bakajsa, Zdena Balcerová, Helena Bamba- WE SUCCEED sová, Martin Dvořák, David Füllsack, Josef Jílek, Quarter of a Century with Peat 12 Ivan Jukl, Dagmar Kuchtová, Marie Pavlů, Martin Plachý, Pavla Podskalská, Josef Postránecký, Filip Remenec, Libor Rouček, Jiří Sochor, Miroslav CZECH TOP Somol, Jan Špunda, Martin Tlapa, Zdeněk Vališ, Aquasoft Team is Winning Prizes 14 Jan Wiesner MANAGING EDITOR: SERVICES Šárka Kratochvílová Key Issues: Systems Integration and Crisis Application Implementation 16 EDITORS: New Technology – Transcription of Spontaneous Speech 17 Jana Pike, Jaroslava Bradová IT in the Czech Republic is Comparable to the Developed World 18 REGULAR COLLABORATORS: The Goal Is to Keep the Customer Satisfi ed 20 David Hort Keeping One's Firm Safe … 20

TRANSLATION: Vlasta Benešová, Alena Kenclová, Robert Krátký, YOUNG STAR Dagmar Šímová, Halka Varhaníková Scientists from Brno Discover Bambusuril, a Compound READ: with Unique Qualities 22 Matthew Booth, Pearl Harris, Ivana Kadlecová KALEIDOSCOPE GRAPHIC DESIGN: Art Director: Nina Nováková Industry is Continuing Its Revival and Helps to Boost Exports 23 Graphic Designer: Jiří Hetfl eisch Fitch Raises Czech Rating from Stable to Positive 23 Production: Anežka Zvěřinová Financial Evaluation Motivates Employees only Temporarily 23 DEADLINE: 15/6/2010 Do Czech Firms Already Feel the Signs of Economic Revival? 23 © PP Agency REGION Company with the ISO 9001 certifi ed quality management system for publishing services Moravia-Silesia Region 24-34 ADDRESS: Myslíkova 25, 110 00 Praha 1 PRESENTATION OF FIRMS Czech Republic AQUASOFT spol. s r.o.; CENTRUM BABYLON, a.s.; CS SOFT a.s.; Ludmila Jílková - TORF; Phone: +420 221 406 622 M.I.P. Advertising, a.s.; Moravskoslezský kraj - Krajský úřad; NOVA - AGRO s.r.o. Fax: +420 224 930 016 - Hotel Santander; Sdružení pro rozvoj Moravskoslezského kraje e-mail: [email protected] www.ppagency.cz, www.doingbusiness.cz Press run: 10 000 copies. The number of printed and sold copies of the journal is verifi ed by NEW ATTRACTIVE PROGRAMME FOR FILM MAKERS! auditor, PKF Audit, s.r.o., member of PANNELL The Czech Republic is launching the Film Industry Support Programme. According KERR FORSTER Worldwide. It is not allowed to reproduce any part of the contents of this journal to the Ministry of Culture, the aim of the Programme is the support of fi lm produc- without prior consent from the editor. tion in the Czech Republic and the increase of the competitiveness of Czech fi lm Attitudes expressed by the authors of articles car- industry on the European and international scale. Many global fi lm epics were ried by CBT need not necessarily be consistent with fi lmed in the Czech Republic, for instance The Chronicles of Narnia: Prince Caspian, the standpoint of the Publisher. MK ČR E 6379, ISSN Wanted, or the Bond movie Casino Royale. Smaller producers aimed at European 1211-2208 „Podávání novinových zásilek povoleno or Asian co-productions will also profi t. The impact for services such as transport, Českou poštou, s. p., odštěpný závod Přeprava, č. j. hotels, or catering will also be signifi cant. According to the Audiovisual Producers’ 3468/95, ze dne 24/10/1995“ Association materials, each crown spent during fi lming will return another crown Cover photo: www.sxc.hu into related services.

3 | INTRODUCTION Questions of the Month for Petr Nečas, Prime Minister of the Czech Republic

Your objective and task was to in all the areas of expenditures – manda- form a pro-reform government com- tory expenditures, capital expenditures, posed of members of three right-wing operating expenditures, government parties (Věci veřejné, ODS and TOP 09). employee wages, subsidies to building What structural reforms do you con- saving schemes, contributions to politi- sider as crucial for the Czech Republic? cal parties and salaries of constitutional The fundamental structural reforms in- officials. The specific parameters of the clude primarily a pension reform and re- different cuts are contained in the Coali- form of the health service. Without these tion Treaty. principal reforms we can reduce the individual budget defi cits, but this will not In a crisis, the rule for companies states guarantee their long-term sustainability. The that they can save for a while, but then reforms will ensure stable public budgets have to find new sources of revenue. for decades ahead. Do you have an idea of how to start growth in the State revenues? You have said that your target for the State revenues can be raised either by 2011 State Budget deficit is approxi- raising taxes, which the government mately CZK 135 billion (EUR 5.4 billion), coalition refuses to do, or by increasing which is 3.6% of GDP. You plan the economic growth. In this area we have Petr Nečas public budgets deficit for next year at prepared a number of measures, parti- 4.6%, which is two-tenths lower than in cularly in support of the business sector, the Convergence Programme. How do which is the only sector to create sus- you want to achieve this? tainable jobs. These measures include, Our plan provides for the gradual reduc- for example, the abolition of Road Tax on tion of budget deficits with two basic passenger cars, allowances on social pay- landmarks – by 2013, at the latest, we ments for socially endangered groups of want to attain below 3% in public budget employees, and VAT returns on unpaid deficit, and by the year 2016 we want to invoices. For details, I refer again to the achieve balanced public budgets. As to Coalition Treaty. Besides reducing unem- changes for next year, they will consist ployment and cutting the budget deficit, mainly of cuts, due to a lack of time, and a fundamental motive for our measures not of reforms that will be effective only is to increase the competitiveness of the from 2012. Next year, we are planning cuts Czech economy.

Arrival of the new Czech government at its seat in Prague on 13 July 2010. Photo: Office Photocombo Photo: archives; of the Government

| 4 ECONOMIC POLICY

Back to Growth

As in most of the EU countries, the Czech economy experienced a strong recession in 2009. GDP declined by 4.1% over the year, but economic indicators showed a turn for the better from the third quarter. In the quarter-on-quarter comparison, GDP began a continual rise of 0.5%, which continued at the beginning of 2010. The drive of the restored economic growth was the export- oriented industry, which initially benefi ted from the car scrappage incentive introduced in several EU countries. The Czech economy thus returned to the trend of growth, which will not be rapid at fi rst, but will most likely be higher in comparison with the “old” EU countries. Of the 27 EU countries, the Czech Repub- lic has the highest Gross Domestic Prod- FAVOURABLE RESULT DUE TO uct. According to Eurostat 2009 data, the INCREASING EXPORTS GDP of the Czech Republic was at 80% of The growth of the Czech economy re- the EU average the third year running. mained at 0.5% at the beginning of 2010, ceased to be in the red and rose by 1.1% almost 24%. All in all, the Czech – export- in the year-on-year comparison. The fa- oriented – economy is benefiting from vourable result was mainly due to rising the present revival of European demand. exports and to a lesser extent to govern- The favourable development in the bal- ment consumption and a change in re- ance of trade is also positively reflected serves. In real terms, the export of goods in the results on its current account. The and services showed a year-on-year rise annual accumulated deficit is only 1.3% of of almost 13%, and imports to the Czech GDP and is easily covered by the inflow of Republic only 10.7%. Exports profited pri- foreign direct investment. Moreover, this marily from the increasing demand for au- value includes the re-invested profits of tomobiles on the European market, which enterprises under foreign control, and so was confirmed by a rise of almost 27% in it is evident that the external imbalance of automobile exports. There was, of course, the economy is very moderate and testi- the effect of the low statistical basis at fies to a good structure of the Czech Re- the beginning of 2009 which improved public’s economic growth. the year-on-year comparison, but even so the export of road vehicles was above the LOWER DOMESTIC DEMAND average. The effect of the car scrappage The latest figures indicate that the export incentive in Germany is over, but a marked expansion continues after last year’s mas- rise has been recorded in exports to other sive but brief attenuation. On the other countries such as the United Kingdom, hand, imports to the Czech Republic con- Spain, France, Italy, and Slovakia, in which tinue to lag behind the rate of exports, this incentive is ending or has also come and for the time being are not increased to an end. Important are Czech exports by the higher prices of imported raw of electrical equipment, which rose by materials. The reason rests in domestic

5 | ECONOMIC POLICY

demand, which remains low. The year- struction of commercial real estate is now in the first quarter of this year and the on-year comparison shows a decline in joining machinery, transport equipment, largest amounts were re-invested profits the consumption of households and in- and residential real estate in the red. Low and repayment of credits which domestic vestment, which together form the most investment is also connected with the companies had granted to their parent important part of domestic demand. This recession, which caused an increase in companies. trend still has roots in the 2009 recession, the share of unused manufacturing, stor- which noticeably influenced the devel- age, and other capacities. And so it was LOW INTEREST RATES opment of the labour market and over- largely a matter of cyclic development AND INFLATION all investment. The lower demand, both rather than “a burst of a bubble” as was This year again, the Czech Republic is re- domestic and foreign, exposed the fairly the case of the US real estate market. taining its reputation of a low-inflation high flexibility of the Czech labour mar- Nevertheless, an increase in the use of economy. The rate of inflation remained ket. The rate at which firms reduced the manufacturing capacities is becoming below 1% in the first quarter in spite number of their employees and agency apparent. The manufacturing industry in of “price deregulation” and increase in workers was unprecedented. Enterprises particular indicates that most branches some excises. The demand inflation has could respond rapidly to the fewer orders, of the industry are past the imaginary vanished, and so consumer prices are but at the cost of rising unemployment, bottom. Thanks to foreign and domestic influenced only by cost factors such as which is believed to have culminated at demand, industrial enterprises are gradu- the raw material prices on world markets, the beginning of this year. The number ally adding orders to their lists. The most and, last but not least, the exchange rate. of unemployed people exceeded half evident examples are the results of the Due to the low inflation, which is mark- a million and the rate of unemployment electrical engineering and automobile edly below the target of the central bank, stopped short of 10%, and thus remained industries. The improvement also ap- the official interest rates of the Czech Na- below the EU average. The higher unem- plies to the manufacture of basic metals, tional Bank are at historical minimums. ployment coupled with slighter growth in which dropped by almost 39% in the first The main interest rate of the Czech Na- wages is still creating obstacles and slow- half of last year. Slower in recovery from tional Bank is one quarter of a percent- ing down growth in consumer demand. the recession is engineering, which is still age point below the main rate of the Eu- Since households incline to save money feeling the reduction in domestic and ropean Central Bank. Inflation prospects in the period of increased uncertainties, foreign investment. are already indicating that the period of their consumption has been declining for Economic indicators are showing that low interest rates will last at least to the three quarters of the year in the year-on- a large part of the Czech economy is end of 2010. And so, low interest rates year comparison. gradually making up for last year’s losses will continue to help a more rapid revival in production. Despite this, the beginning of the economy. ... INVESTMENT IS of the next wave of investment will prob- There are signs that the trend of growth ON THE SAME WAVE ably be delayed by one or two years. How- is back in the Czech economy mainly due Investment also remains low. No revival ever, this does not mean that the Czech to rising foreign demand. It is not suffer- followed the decline of 9.2% in 2009 and economy would be outside the field of ing from any major problem requiring investment dropped by 6.6% in the first vision of foreign investors. New foreign immediate solution with the exception quarter of 2010. Investment into the con- direct investment exceeded EUR 2 billion of the budget situation. The new government can be expected to deal with ECONOMIC GROWTH (%) this problem soon and without a radical increase in the tax burden. In contrast to 8.0 most EU countries, the Czech Republic has the advantage of a fairly low govern- 6.0 ment debt, which is no excessive burden to the expenditure side of budgets. When 4.0 2.0 2.5 foreign demand gets going, domestic 1.6 1.6 1.3 1.5 2.0 demand should put out shoots of revival 1.0 0.7 0.5 0.3 0.3 0.2 0.5 0.5 and support both industry and services. 0.0 Domestic demand could eventually fill in -0.7 -0.5 possible gaps in foreign demand, which -2.0 could come soon in consequence of the planned cuts in the budgets of the largest -4.0 -3.8 EU countries. -6.0 2006Q1 2006Q4 2007Q3 2008Q2 2009Q1 2009Q4 Petr Dufek quarterly yearly Analyst ČSOB

e-mail: [email protected] www.sxc.hu Photo:

| 6 INVESTMENT

Czech Film Industry Support Programme Launched!

Film makers will get back 20% of the The Czech Republic is launching the Film from the Programme to the registry of the money spent on fi lm making in the Industry Support Programme. In the European Ministry of Culture. According to the Minis- Union the support of selected industry fi elds try, the aim of the Programme is the support Czech Republic. That is a message to is a controversial issue due to market protec- of fi lm production in the Czech Republic both foreign and Czech fi lm mak- tion and competition, but fi lm is an excep- and the increase of the competitiveness of ers. They will request the return of tion. After the introduction of incentives for Czech fi lm industry on the European and the fi lm industry in not only neighbouring international scale. It is also an additional fi nancing through the Czech Ministry EU member states, the Czech Republic lost source for the fi nancing of Czech national of Culture and they have to submit its long-time privileged position on the list of cinematography, and indirectly the Pro- the so-called cultural test, which destinations for foreign fi lm productions. Five gramme is aimed at the support of regional and more years ago the situation was entirely development and support of small and me- will prove whether the fi lm has diff erent. At that time there was no funding for dium-sized companies, small entrepreneurs, artistic qualities. In autumn 2009 the support of the fi lm industry in European and professions with high added value. the Czech government put CZK 400 countries and the Czech Republic was among the most attractive destinations of fi lm mak- WHY COME FILMING million (just below EUR 16 million) ers, who utilised the high professionalism of IN THE CZECH REPUBLIC? into a fund called the Film Industry Czech fi lm workers and a wide selection of Support Programme. A similar sum locations. After other countries had started EXTERIORS to lure fi lm makers with state-funded rebates, The Czech Republic has many towns, natural should appear in this fund for fi lm Czech ateliers started to languish. The larg- and historical sights suitable for fi lm projects makers in the following years. est de crease of production investment in the concentrated on a small area. It is not only Czech Republic was between 2002 and 2008. Prague, which off ers a mixture of architectural styles, but also the interesting countryside THE NEW PROGRAMME with its lakes, forests, and mountains. IS ATTRACTIVE QUALIFIED STAFF In June 2010 the European Commission The key asset for a large number of foreign averted this development by adopting the productions are the excellent qualifi cations Film Industry Support Programme. Relevant of staff in this sector. At the moment, foreign information for foreign investors can be fi lm crews are almost solely staff ed by Czech found at the web pages of the Czech Minis- workers (for example Czech stunt performers try of Culture – www.ppfpen.cz. Applicants are among the best in the world in the fi lm can submit their Application for support industry and they have participated in chal- lenging scenes in many world epics such as Saving Private Ryan or Titanic) and the heads of individual crew departments are also often Czech.

ESTABLISHED FACILITIES The number and extent of fi lm crews, which is unheard of in other similar countries, also speaks for the sector of foreign productions – the number of capable and experienced stage crew members is suffi cient enough so that several large productions can be taking place in the Czech Republic at the same time at any given moment. Established facilities such as Barrandov Studios, Prague Studios, or the Prague branch of Stillking Films are com- fortable and eff ective places for production. Film tradition, which is a part of the history of the country, has nurtured workers in the fi eld of construction and set who are thanks to their qualifi cation capable of working fast and at a high level.

7 | INVESTMENT

SELECTION OF FILM EPICS FILMED IN THE CZECH REPUBLIC: Mission Impossible (1996) Joan of Arc (1999) Hart’s War (2002) EARLY APPLICATION FILM IS RETURNING Van Helsing (2004) The Programme guarantees that 20% of TO THE CZECH REPUBLIC The Chronicles of Narnia: The Lion, the eligible costs will not be paid out until the Film producers are excited. Helena Uldri- Witch, and the Wardrobe (2005) “investor–producer” invests his fi nancial chová, the managing director of the Audio- James Bond: Casino Royale (2008) means into Czech services and goods. He visual Producers’ Association, for example Wanted (2008) will then carry out an audit of his expenses. says, “It is a very positive message to the Applications are processed in accordance whole fi lm industry and a great chance to Bond movie Casino Royale. Smaller produc- with the date upon which the applica- maintain several thousands of jobs. I can ers aimed at European or Asian co-productions are received. This system encourages confi rm that with the announcement of tions will also profi t. The impact for services producers to lodge applications on time. the incentive the Czech Republic’s attrac- such as transport, hotels, or catering will A signifi cant feature of the Programme is tiveness has increased.” also be signifi cant. According to the Audio- that grants are paid after the completion of Many global fi lm epics were fi lmed in the visual Producers’ Association materials, each the project (i.e. after spending funds in the Czech Republic, for instance The Chronicles crown spent during fi lming will return an- Czech Republic). of Narnia: Prince Caspian, Wanted, or the other crown into related services.

The Most Advanced Brickworks in Europe

The Czech family fi rm Heluz has in- Heluz. “The manufacturing is effi cient result of its fi ve-year development eff orts vested nearly one billion Czech crowns, and consumes less energy than is the case is a new brick-making recipe enriched with exactly 850 million (approx. EUR 32.1 in older brickworks. The technology we use another biomass component – straw. The makes it possible to manufacture blocks, al- new mixture makes it possible to increase million) in the construction of a hyper- ready in one-layer walling, which meet the the number of rows and build thinner walls, modern robotic brick-making facility requirements for the circumferential con- which nevertheless have excellent heat in- in Hevlín, South Moravia. The actual structions of low-energy and passive houses sulating properties meeting the conditions without any additional thermal insulation. for the construction of passive houses with- construction of the new plant and the We manufacture nearly 40 000 such bricks out the need for additional heat insulation. tuning up of the technology took more a day.” In developing the technology needed for than two years. Currently the plant is serial production of the new bricks Heluz GROWTH THANKS TO co-operated, for example, with the Technical meeting all projected parameters. INVESTMENT INCENTIVES University in Prague. It has invested more than Heluz sells its products mainly in the Czech CZK 16 million (approx. EUR 605 000) in the Republic and in Slovakia. A part of the out- purchase of machines, but through CzechIn- put, however, goes to Poland and Hungary, vest it will receive CZK 5.6 million (approx. EUR FIFTY NEW JOBS and also to Germany and Austria. Before 223 000) in subsidies from the Innovation Pro- Fifty new jobs have been created in con- building the new plant, the fi rm had about gramme, which is part of the EU Business and nection with the construction of the new a 20% share of the market, while after its Innovation Operational Programme. plant. The building of this exclusively Czech- completion its market share increased by owned project was facilitated by the assist- another 20%. “Heluz is a perfect example of HISTORY OF THE BRICKWORKS ance given to it in the form of investment in- how investment incentives help Czech fi rms HELUZ cihlářský průmysl v.o.s. is a company centives mediated by CzechInvest Agency. in conquering the European market,” says established in 1992. Now, after the launch- The fi rm meets all conditions laid down for Michal Stieber, head of CzechInvest’s invest- ing of its new brickworks, it has eight manu- obtaining the incentives, which was con- ment project management section. facturing plants in three diff erent localities. fi rmed recently by the Ministry of Labour The company is the largest Czech brick and Social Aff airs. FIVE YEARS OF RESEARCH making facility and has the second largest AND DEVELOPMENT share of the Czech brick market. The fi rm’s MOST ADVANCED TECHNOLOGY Besides starting a completely new plant, history goes back to the year 1876. During USED IN BRICK-MAKING Heluz steadily improves the technologies in the less than twenty years of its presence “Thanks to the Heluz Company, the village its other plants in Dolní Bukovsko, Libocho- on the market, Heluz has made nearly 150 of Hevlín can boast the most advanced vice, and also in Hevlín. There, it will make million brick blocks, which could build some brick-making facility, at least on the Euro- a new type of brick, the development of 75 000 family houses.

pean scale,” says the fi rm’s owner Vladimír which it has been working since 2005. The More at www.heluz.cz www.sxc.hu Photo:

| 8 LEGISLATION

How to Conclude Lease Agreements under Czech Law

An agreement on lease of offi ce A lease agreement which would not the charges for services provided by the (non-residential) premises may be, meet the specifi c requirements set out by landlord with the rent (service charges), the Czech Act on Lease and Sublease of which must be calculated separately from in certain circumstances, governed Non-residential Premises would be consid- the rent. by other than Czech law. In practice, ered invalid. As a result of the invalidity of however, a vast majority of the the lease agreement, the landlord would Failure to include any of the above-men- be required to return to the tenant the rent tioned items results in the invalidity of the agreements on lease of the offi ce paid by the tenant under the invalid agree- lease agreement with the above-men- premises in the Czech Republic is ment and the tenant would be obligated tioned consequences. Failure of the parties governed by Czech law. The ap- to pay to the landlord the unjust enrich- to specify the term of the agreement does ment resulting from the use of the offi ce not render the lease agreement invalid. In plicable Czech laws are still rather premises on the basis of the invalid legal such case, the lease agreement is deemed rigid compared to the European grounds. to be concluded for an indefi nite period. standards. It is a market standard in the Czech Re- Under Czech law, an agreement on public to include in the lease agreement an lease of the offi ce premises must obligation of the tenant to provide the land- be in writing and must contain the lord with a security in a form of a deposit or following: a bank guarantee. the subject of the lease, i. e. the specifi ca- The lease expires on the date agreed in the tion of the relevant offi ce premises; lease agreement. Prior to that, the landlord the purpose of the lease, e. g. use of may terminate the lease agreement conclud- the leased premises as the offi ces, retail ed for a defi nite period for the following reas- premises, etc.; ons: (i) use of the leased premises in breach the scope of business which the tenant is au- of the lease agreement; (ii) delay of the thorised to perform in the leased premises tenant with the payment of the rent or the pursuant to the relevant public register; service charges for more than one month; the amount of rent; (iii) sublease of the leased premises without the prior written consent of the landlord, etc. The lease agreement may state other reasons for the termination of the agreement. Unless agreed otherwise, the tenant may terminate the lease agreement concluded for a defi nite period if the tenant (i) relin- quishes the regulatory approvals for the performance of the relevant business activity in the leased premises; (ii) the leased premises cannot be used as offi ces for other reasons than due to the failure of the tenant; (iii) the landlord fails to maintain the leased premises in the conditions suitable for the agreed purpose of use. If the lease agreement is concluded for an indefi nite period, both the tenant and the landlord may terminate the lease agreement for any reason or without giving reasons with a three-months notice period unless agreed otherwise in the lease agreement. If not specifi cally agreed otherwise, neither the landlord nor the tenant may terminate the lease agreement as a result of the change of the ownership to the leased premises.

Michal Pravda, Ondřej Mánek, Wolf Theiss advokáti, s. r. o. e-mail: [email protected] e-mail: [email protected]

9 | LEGISLATION

New Legislation Seeking to Reduce Administrative Burden

This article aims to provide the LABELLING OF PRODUCTS incurring unreasonable costs on the part of reader with a brief report on the Act It follows from the existing provision of the entrepreneurs. Section 10 para 1 letter a) of the Consumer Furthermore, holders of intellectual prop- No. 155/2010 Coll., which amends Protection Act that sellers shall ensure that erty rights must no longer upon request sub- certain acts to improve the quality products to be sold by them are visibly and mit to the Czech Trade Inspection documen- of their application and to reduce intelligibly marked with the name of the tation necessary for assessment of goods or product, the designation of the manufactur- products pursuant to the provision of Sec- administrative burden on entrepre- er, importer or supplier, the weight, quantity, tion 8a para 1 of the Act on the Czech Trade neurs (hereinafter referred to as “the size or dimensions, and any further informa- Inspection. Imposing this obligation on the Act” or “the Amendment”), which tion that, based on the nature of the prod- owner of intellectual property right indeed uct, is necessary for its identifi cation or use. seems to be redundant and an unnecessary was passed by the Czech Parliament The passed regulation reduces the amount burden on the part of both entrepreneurs in April 2010 and comes into legal of obligatory information to be presented and the Czech Trade Inspection. Provision of force in August 2010. merely to the designation of manufacturer, the necessary documentation to enable ef- importer, or supplier. A label of the product fective control respecting intellectual prop- The Act is characterised by shall hereafter bear additional information erty rights shall now be based on voluntary a relatively wide impact across the only where, based on the nature of the cooperation among stakeholders. Czech legal order affecting acts of product or form of its sale, this is necessary. REDUCTION OF STATUTORY both private and public law nature. REMOVAL OF DUPLICATION IN DUTIES OF AN ENTREPRENEUR The amendments, however, share THE DUTIES RELATING TO THE RESULTING FROM THE TRADE 4 a common objective; reducing the MARKING OF TRADE PREMISES LICENSING ACT The Act removes the obligations of entrepre- One of the most positive impacts of the Act administrative burden of entrepreneurs to mark their retail outlets in conform- is without doubt the signifi cant reduction of neurs in terms of their statutory ity with the Trade Licensing Act and when the amount of information to be presented duties, which have turned out to a retail outlet is to be closed down to inform by an entrepreneur to the Trade Licensing the applicable trade licensing authority Offi ce. be redundant in the day-to-day about where claims can be settled from the By taking advantage of the integration practice. For easier comprehen- scope of Consumer Protection Act due to of the public sector databases, the entre- sion, the impact of amendments is their unsystematic and redundant charac- preneurs shall no longer have to present ter, keeping the respective regulation in or an excerpt from the Commercial Register divided according to the particular moving it to the Trade Licensing Act. Given when notifying commencement of trad- legal obligations or regulations the existing duplicity of the legal regulation, ing, as they had to so far, as the Trade Li- they affect. both the Czech Trade Inspection (www.coi. censing Offi ce shall obtain all of the neces- cz) and the Trade Licensing Offi ces are au- sary information on its own. Moreover, the thorised to control the observation of the entrepreneurs shall not have to report all obligations indicated above. As soon as the changes concerning information and doc- Act enters into legal force, the duplicity shall uments laid down as particulars in cases be removed and solely the Trade Licensing of notifi cation of the commencement of Offi ce shall be entitled to act. trading or an application for a trading per- mit provided these changes are already re- REDEFINITION OF REMOVED REPORTING corded in the respective registers.5 THE TERM “CONSUMER” OBLIGATIONS TO THE CZECH Furthermore, the Act revokes the duty of According to existing legislation in the TRADE INSPECTION an entrepreneur to keep available docu- Czech Republic, a legal person is not ex- Pursuant to the provision of Section 6 para ments proving the method applied to cluded from the scope of the term “con- 3 of the Act on the Czech Trade Inspec- acquire the goods on sale or the materi- sumer”. This state of aff airs is, however, not tion3, a subject of an inspection shall within als used in the provision of services in an entirely compliant with European law1 or a defi ned period of time remove observed establishment where goods are sold or with the purpose of the regulation as such, defi ciencies, their causes and harmful ef- a service provided6, keeping solely the duty bearing in mind the fact that a legal per- fects of these defi ciencies, or shall take im- of an entrepreneur to prove the above- son, given its nature, is hardly to be consid- mediate measures to remove such defi cien- mentioned upon request and within the ered a weaker party. The Act thus restricts cies and report on them and on their results time limit set by a control body. the scope of the term “consumer” to natu- within a defi ned period of time to the Czech A natural or legal person who intends ral persons only by amending the respec- Trade Inspection. The Amendment removes to trade (where the trade must by law be tive provisions of the Civil Code and the the reporting duty having factually merely notifi ed to the Trade Licensing Authority) Consumer Protection Act2. a formal character, no practical impact and shall no longer have to notify the Trade Li-

| 10 CZECH BUSINESS AND TRADE

censing Offi ce of the date of commence- to certain sections of the criminal courts’ ercise of State Administration in Energy, Act ment of trading, the date on which trading fi les. Therefore, the Trade Licensing Of- No. 22/1997 Coll., on the Technical Require- is to be terminated (if it is intended to carry fi ces shall have all information needed for ments for Products, and Act No. 505/1990 on the trade for a fi xed term7), nor the date the purposes of complex assessment of Coll., on Metrology. As to the fi nancial eff ect of inception of trade authorisation, if later the applicant’s good character, as the cur- of the Amendment, according to the Act’s than the date of notifi cation. The Act also rent extract from the Crime Register was explanatory report, the proposed changes changes the regime of an entrepreneur’s deemed insuffi cient. should save entrepreneurs more than CZK notifi cation of the suspension of trading 0.5 billion (EUR 20 mil.) annually. The real to the Trade Licensing Offi ce from compul- CONCLUSION impact is diffi cult to predict, however, any sory to voluntary. For the sake of completeness, it deserves simplifi cation of the Czech entrepreneurial It is generally known that one of the gen- to be mentioned that the Amendment also environment and reduction of entrepre- eral conditions to be met by natural per- aff ects other Acts, namely Act No. 61/1988 neurs’ statutory duties must be generally sons in order to carry on a trade is that they Coll., on Mining Activities, Explosives, and understood as a positive step. must be of good character. Good character the State Mining Administration, Act No. is commonly demonstrated by an excerpt 156/2000 Coll., on Certifi cation of Arms, Pavel Toufar from the Crimes Register8. The Trade Li- Ammunition, and Pyrotechnic Articles, Act Lawyer censing Offi ces shall now have access to No. 458/2000 Coll., on Prerequisites for the Čermák Hořejš Matějka a spol. the decisions and in reasonable cases also Pursuit of Business Activities and on the Ex- Law and Patent Offi ces

1 cf. COUNCIL DIRECTIVE of 20 December 1985 to protect the consumer in respect of contracts negotiated away from business premises (85/577/EEC). 2 Section 52 para 3 of the Act No. 40/1964 Coll. Civil Code, as amended and Section 2 para 1 letter a) of Act No. 634/1992 Coll., Consumer Protection Act, as amended; 3 Act No. 64/1986 Coll., on the Czech Trade Inspection, as amended; 4 Act No. 455/1991 Coll., the Trade Licensing Act, as amended; 5 The Act extends the information sources to be used by the Trade Licensing Offi ce in this respect from the Commercial Register to the Civil Registration Information System and the Foreigner Information System; 6 Or, if he has no establishment, at the place of business, registered offi ce, or at the location of the organisational unit of the undertaking of a foreign person; 7 The obligation of a foreign person to notify commencement of trading for a maximum period corresponding to the length of residence permitted remained; 8 Or an extract from the crimes register or an equivalent document issued by the competent judicial or administrative authority of the foreign state or of the Member State of the European Union

11 | WE SUCCEED

Quarter of a Century with Peat

Doctor Suzan lectures on balneology at to fi nd out how to process it. It dawned against mycoses under the Saprox mark. the National College of Nature Medi- on me that it behaved like meat and so The largest recipients are countries with I minced it. Like beef full of tendons. You humid climate, primarily the Bahamas. Peat cine in Portland, USA, and visits the only need very sharp knives in the mincer. cosmetics of the Ludmila Jílková - TORF en- village of Krásno in the Sokolov District Peat has ten degrees of decomposition and terprise are known in the world under the from time to time in quest of new I already know them so well that I recognise SFAGNUM mark. The absolute sale hit is not the degrees by touch. I can choose exactly a luxury cream, face pack, or body milk. It knowledge. No important institute or the structure I need for a concrete product. is Saprox. renowned scientist is there, but a small Since peat has so many gifts of nature, it family fi rm Ludmila Jílková - TORF, occurred to me that much more could be REVERSED THREAD done with it, and so I conceived peat cos- The latest success of Ludmila Jílková in which rendered peat famous abroad. metics. The face pack came fi rst, followed by the world is the vaginal peat tampon. day cream and body milk. The fi rst response Peat can absorb all the problematic sub- came from abroad – from the USA, Hong stances which we contract, for example, Kong, Japan, China and, of course, from in swimming pools, from washing pow- Europe, mainly Germany. Paradoxically, the ders, or drugs and bear them in our bod- home market came later. "At last, people ies. A personal participant in clinical tests are beginning to realise that nature is better in Františkovy Lázně was Robert Kovarik, than chemistry, and that we must respect it a gynaecologist and publicist of world as users” Ludmila Jílková says. renown who lives in Paraguay. Ludmila Jíl- ková puzzled her head over fi xing a plastic Ludmila Jílková commenced work with peat WITH SULPHUR TO THE WORLD applicator on the tube for two years before twenty-fi ve years ago. Initially she processed Ludmila Jílková’s specifi c feature is that she she suddenly got it. It was so trivial – a re- it and sold it as a gardening substrate. The does not conceive anything systematically. verse thread! more often she dipped her hands into the An immediate idea is behind all her suc- “Whenever something turns out well, black-and-brown substance, the more cesses. One of these came when she chat- I don’t take it as my success. I rather think she was aware of its potential and felt the ted with a friend who is a geologist. When that it is ordinary life. Doing, completing, strength and energy it concealed. Thou- they spoke about lakes in a coal basin, it conceiving, improving – this is how life sands of years in marshy areas turn moss dawned on her: there must be sulphur! should go, isn’t it?” and various plants into peat bogs, in which And so fi ve years ago she extracted the plant substances are perfectly preserved fi rst sample of the life-giving organic mud Ludmila Jílková - TORF without undesirable impurities and hetero- of sapropel. Now she is sending pallets 357 47 Krásno, Czech Republic geneous microorganisms. of it to the world in the form of emulsion www.sfagnum.cz Peat, the purest product of nature, soon changed its appearance in the hands of Ludmila Jílková. She reduced it to pulp, and in the form of pure substance immediately off ered it for use in spa facilities. She simply turned upside down – actually simplifi ed – the existing spa procedures. What followed were peat wraps and baths, which could be enjoyed even at home. Spas which lack their own source of peat are still the main buyers. The revolution in Czech balneology was not enough for Ludmila Jílková. She decided to introduce “her” peat to the world.

TEN STEPS TO HEALTH When one constantly dips hands into peat, begins to understand it, thinks about it night and day, and it even becomes a teatime topic, it becomes a partner. “It attracts me, it has so many excellent properties, and is constantly revealing something about itself. At

fi rst, it was most important archives L. Jílková’s Photo:

| 12 Satellite VHF ACARS / ATN network

ADS position reports Datalink CPDLC communication ATC system (Compass)

Plots Radars Multitracker

System Track

SDPS, FDPS, Safety Nets ATCO HMI CZECH TOP

Aquasoft Team is Winning Prizes

Aquasoft, a Czech IT company, has ent and only off er what is really needed. been on the market for fi fteen years. Such long-term relationships provide the clients with a feeling of trust. Aquasoft has not Aquasoft manufactures custom lost a single client during its entire existence. systems, mainly for state institutions The overwhelming majority of business rela- and large enterprises. The company tionships are longer than 5 years, and several important clients have been with Aquasoft designs, develops, and supplies for over 10 years. Quality relationships based extensive information systems that on trust set Aquasoft apart from its compe- support specifi c processes, manage tition. Aquasoft has proven its experience in over 100 successfully realised developmental information about entire company and integration projects. divisions and business areas, and sort and analyse large amounts of AREAS OF OPERATION General Manager of Aquasoft, Mr Petr Franc (centre), For the state administration, Aquasoft spe- accepts the European Business Awards 2010 nomination data. Aquasoft appears to be really cialises in supplying extensive information successful in its fi eld. systems in the following areas: customs pitals do not use them, or not to their full- operations, tax and fi nes administration, est potential. The integration of individual subsidy administration, food safety, admin- scattered information systems represents istrative action, and control activities. These a problem for virtually all hospitals, even projects include, for example, the informa- though quality solutions are available. EBA NOMINATION tion system for the export, import, and tran- Aquasoft was nominated for the prestigious sit of goods, registry of agricultural animals, QUALITY OF COMPANY European Business Awards (EBA) this year. a system for effi cient conduct of administra- CULTURE RECOGNISED The EBA is awarded by the HSBC World Bank tive action, etc. The thing that makes Aquasoft really spe- and its goal is to fi nd and give recognition In the commercial sphere, Aquasoft chiefl y cial is the 120 highly qualifi ed professionals to companies from diff erent fi elds with out- works with companies whose main business who work here. Aquasoft has succeeded in standing business approaches. 3 500 com- is based on project realisation. Besides IT building a well co-ordinated team of people panies from the whole of Europe entered companies, these include, for example, con- who can rely on each other both profession- this year‘s competition, but only 175, with sulting and construction fi rms, developers, ally and personally. Their work and success Aquasoft among these, have been chosen and also the development and construction is based on inventiveness and creativity, for the second round. Aquasoft has thus be- divisions of production companies. education and experience, determination come one of the only 10 nominated compa- Aquasoft is not limited to the Czech mar- and reliability. The relations between em- nies from the Czech Republic. ket, it also operates abroad, especially in ployees are refl ected in their contact with Turkey, where a project aimed at preparing customers. CUSTOMER APPROACH Turkey in the area of customs for the mem- The fact that Aquasoft possesses a team of All new information systems by Aquasoft are, bership of the EU has been completed re- motivated and loyal employees is evidenced from the very beginning, developed in close cently. Another project in the same country, by low employee fl uctuation and the repeat- co-operation with customers. The matter is related to food safety, has just started. ed placement of Aquasoft in the Top 10 of the so complicated that clients are often unsure prestigious list, Best Employer of the Czech of their demands. A concrete specifi cation is HELP FOR HOSPITALS Republic in the Small and Medium Businesses worked out, on the basis of a detailed analy- Health care has been the area of main inter- category. This study is put together by Hewitt sis of the client‘s needs, a search for an opti- est for Aquasoft recently. There are many Associates every year. The study serves as an mum solution, and the client‘s requirements. technologies readily available today that indicator of the success of company culture Aquasoft listens to its clients and speaks the can radically simplify all administrative tasks and the complex work in the area of human language they understand. The “only” remain- and speed up access to documentation resources control. It is, after all, the employees ing thing is fi nding a solution, developing an for health care employees. However, hos- who decide the results. Aquasoft enables its application, installing it into the client‘s exist- employees to actively infl uence the activi- ing systems, and subsequent testing. Admin- AWARDS: ties within the company, and the employees istration and maintenance of the application 2010 – nominated for the European Busi- appreciate the open communication and is guaranteed for the time of its use. ness Awards, Aquasoft one of 10 compa- friendly company culture. nies representing the Czech Republic. KNOWING THE CLIENT WELL 2010 – 2008 Top 10 in the Best Employ- Lenka Knofl íčková, Aquasoft prefers long-term co-operation to ers of the Czech Republic, Small and Aquasoft, one-time orders. Long-term co-operation Medium Businesses category. e-mail: l.knofl [email protected], 2009 – 2006 Microsoft Industry / Technol- allows to deepen our knowledge of the cli- www.aquasoft.eu archives Aquasoft Photo: ogy Awards. “Winner” or ”Finalist”. 2010, 2008 – 2006 – The Best Case Study | 14 of the Year by Business World. He’s got a great sense of rhythm, but you’ll get to like him for something else...

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www.aquasoft.eu SERVICES Key Issues: Systems Integration and Crisis Application Implementation

ICT Union is a professional association processes in wider contexts. “IT strate- of the information systems and safety rose. of fi rms operating in the area of gy” is becoming increasingly important, the Effi ciency includes requirements for integra- same as strategic business plans. tion instruments and the support of the econ- information and telecommunication Another important shift is towards out- omic management of companies (support technologies representing the Czech sourcing both as regards IT applications or of fi nancial decision-making, support of the Republic’s ICT industry. To fi nd out IT infrastructure and IT support in general. customer-supplier relationship). about its aims, we approached its Which IT services are currently most in Is it diffi cult for a foreign IT fi rm wishing executive director, Mr Ladislav Mahn, demand on the Czech market? to do business in the CR to fi nd expert pro- and asked him the following questions. The requirements for the faultless function- grammers speaking foreign languages? ing of IT infrastructure still dominate, but Currently, partly thanks to the economic key importance is being attached increas- situation, it is no problem to fi nd program- ingly to systems integration and the imple- ming experts on the Czech market speaking What are the current priorities of ICT mentation of crisis applications. As regards foreign languages. The question remains the Union? effi ciency, special requirements are placed price/performance ratio, which depends on One of our aims is to make a signifi cant contri- on “on demand” services. projects for which the experts are sought. bution to the development of the Czech economy so as to help to raise the Czech Repub- Is there any strong trend infl uencing the How are Czech IT fi rms faring on foreign lic’s competitiveness to the highest possible IT sector? markets? level and build an innovative and knowledge- A strong trend is cloud computing, although Czech fi rms are faring well, as shown by ICT based society. As a professional association of a number of important issues in this area export fi gures (CZK 360 billion/approx. EUR fi rms in the area of information and telecom- obviously need more clarifi cation, especially 14.4 billion in 2008) and ICT services CZK 31 munication technologies, we largely represent as regards the ensuring of service standards billion/approx. EUR 1.24 billion in 2008). the Czech Republic’s ICT industry and help to and data protection. As an example, I would like to mention promote the effi cient use of ICT in all spheres As for the requirements placed on IT ex- products of Czech fi rms operating in the of life in the CR. This, in our view, is a condition perts, special demands are the mastering of area of anti-virus SW, application solutions necessary for building a society based on integration skills, project management and for customs proceedings and for booking knowledge and innovation. We are co-au- a “solution” approach – overall IT support and sales systems of airline companies and thors of essential reform projects, legislation, added value. travel offi ces. and key decisions aimed at the development ICT Union intends to join the project of the of ICT in the Czech Republic and are partners How did economic recession aff ect Czech Republic’s new export strategy for 2011- to state regulatory institutions. the Czech IT market? 2016 currently being developed by the Min- We are a pragmatic and effi cient associ- Investments in backend systems were cut, istry of Industry and Trade. As part of our ICT ation, which means that we want to submit the development of the infrastructure slowed export support, we are planning to organise realistic and practical suggestions that will down, while demands for greater effi ciency our own ICT meetings and presentations in bring benefi ts to many areas, not just the diff erent countries in co-operation with Czech ICT industry. government institutions, collect and supply information concerning exports (information When recalling the situation in IT a few service for ICT Union members) and participate years ago – which were the main prob- in exhibitions and trade fairs in foreign coun- lems fi rms had to cope with in compar- tries, establish close co-operation with export ison with their current tasks? organisations in the CR and take advantage of Today, the approach to meeting the require- using their services and know-how. ments for IT support (HW, infrastructure, integration, application) are assessed increas- Do IT fi rms draw money from EU funds? ingly in terms of added value and effi ciency, Members of the association do draw money having in mind the benefi ts of IT investments from EU funds, in particular the “Marketing” for the fi rm’s business. IT managers respons - and “ICT and Strategy Services” programmes ible for IT operation are becoming CIO’s with (in the framework of the Business and Inno- responsibilities for the contribution IT will vation Operational Programme); the ICT Un- make to the company’s business, and sup- ion itself has applied for a subsidy from the pliers are turning into long-term partners, Human Resources and Employment Opera- who must be skilled in doing business and tional Programme. know the customers’ culture. Increasingly in the focus is conceptuality and the linkage In May 2010 the European Commission

of investment in IT to the effi ciency of key revealed its digital economy strategy. www.sxc.hu Photo:

| 16 CZECH BUSINESS AND TRADE

Its main emphasis is on the possibility of For illustration, I would like to say a few threats for ICT in the CR (especially the high high-speed Internet and the strengthen- words about the content of our document. added value services drain from the CR). ing of an unlimited online market in music In it, among other things, ICT Union identi- At the same time, ICT Union has formulat- and fi lm. What tasks will ensue from that fi ed the main barriers preventing the faster ed potential solutions of many of the prob- strategy for the Czech Republic? development of information and communi- lems, i.e. how to surmount the barriers. The Maybe as a coincidence, at practically the cation technologies, specifi cally the inade- only “little” thing that remains to be done same time (10 June 2010) ICT Union pub- quate development of broad band connec- now is putting the strategy to life!!! lished its programme document called ICT tions – for mobile equipment (availability of In conclusion it can be said that meeting the Industry Strategy in the Czech Republic. mobile Internet), inadequate evaluation of priorities and aims set out by ICT Union helps The document, which is in harmony with the importance of ICT industry for the coun- to raise the competitiveness of the Czech Re- the strategic document of the European try’s economy, limited use of ICT potential in public, and will continue doing so also in fu- Commission, was prepared in co-operation services provided by the public administra- ture, not only on the European scale! with experts from the ICT Union’s member tion sector, limited number of highly skilled fi r m .s human resources, globalisation and its More about ICT Union at www.ictu.cz

New Technology – Transcription of Spontaneous Speech

Phonexia and OptimSys, in collaboration minimum of ambient noise during or vulgarisms used by both the client and the with the Brno University of Technology, recording, careful articulation, etc. The tran- operator. introduced in June 2010 a new technol- scription of low-quality phone call recordings “The BUT Speech@FIT research group at into text with their help yields only mediocre the Faculty of Information Technology at the ogy on the market. This technology from results. In contrast, the technology devel- BUT has already been successful several times the area of spontaneous phone speech oped by Phonexia achieves an 85% success with its speech recognition technologies on transcription into text is absolutely rate, which is fully suffi cient for understand- a worldwide level,” says Jan Černocký, Head ing the content while reading the text, and of the Department of Computer Graphics unique in the Czech Republic. Phonexia allows for further processing, such as index- and Multimedia. “With the help of some addi- supplies technologies for the automated ing and searching, creating speech records, tional development, Phonexia transfers new gathering of information from spoken phone call content checking, etc. The success technologies and the results of our research rate of the system can be further improved into practice. This co-operation provides us speech and its products have found use by adding words into its vocabulary. The with valuable feedback which we can react in applications for phone call analysis in basic version contains over 1 million words. to by further applied research.” call centres, in the area of security and In addition, OptimSys technologies allow “A new trend of information mining from for the implementation of these advanced speech is starting to take hold worldwide in defence, and in multimedia archives. functions in company information systems, the area of customer services, especially from OptimSys integrates telephony into without the need to buy new telephones or phone calls, the so-called speech analytics,” enterprise processes and IT systems. telephone switchboards. comments Pavel Cenek, the Executive Man- ager of OptimSys. “Related technologies, in The system is capable of processing SYSTEM APPLICATION combination with open standards for the cre- low quality signal recordings, ambient Companies may utilise the system, for exam- ation of telephony and speech applications, noises, or incorrect pronunciation, which ple, to keep records of external and internal form a whole new generation of telephony conferences, teleconferences, etc. The system systems with unique features. However, older has not been possible with any other can be used to visually parse the speech, in generation systems, not capable of the newly software for the Czech language. order to quickly gain an idea about the direc- off ered functions, are used almost exclusively tion or development of a business meeting, in the Czech Republic today. Our company or to search within the speech. A new func- is the only Czech producer of a platform for HIGH SUCCESS RATE tion allows users to dictate notes by calling telephony and speech applications based on OF TRANSCRIPTION a phone number. The resulting audio record- the aforementioned open standards.” Existing commercially deployed speech tran- ing and the transcription will then be avail- scription systems have been mainly devel- able in the CRM system for further process- Practical application of the technologies oped as dictation systems, limited to a specif- ing. The system can also detect monitored can be tried out free of charge at ic fi eld, requiring quality sound, microphone, words, such as the name of the competitors www.PrepisReci.cz.

17 | SERVICES

IT in the Czech Republic is Comparable to the Developed World

In recent years, the economy of the The share of costs expended for soft- Another American company – Red Hat – one Czech Republic has profi ted from ware and services, related to hardware main- of the world‘s leading suppliers of software tenance from the overall IT expenditures, is based on open source code, opened a new the positive trends of past years. Yet, generally considered a reliable indicator of development centre in Brno in 2007. With at the end of 2008 and especially the maturity of a given IT market. According 207 professionals, this centre ranks among the during 2009, it could not avoid the to IDC reports, the market for IT services in the company‘s most important branches. CR grew by 5.4% in 2008, in comparison to ICT investments are not limited to foreign problems caused by the uncertainty the year before, despite the beginning reces- companies, which is clearly illustrated by the of the world system of fi nance and sion. According to preliminary estimates, the fact that a genuinely Czech company (Logos) the subsequent global economic growth in 2009 slowed down to 1.3% but, in was named the most important Investor of the view of the overall economic decline, we can Year 2007 in the area of strategic services for an recession from which the Czech still consider these numbers a success. Ac- expansion of its Prague IT development centre. economy has not been spared. cording to the same source, the main source The list is concluded by Novell, which opened of investments in IT services is, and will remain, a global Suse Linux support centre in Prague in the state administration with its many e-gov- 2008, and eBay, which established a marketing ernment projects. A further decline in expen- and analytical centre in Prague to support its ditures for IT services is not predicted for 2010. business activities in Europe and Asia. Other Rather, they will be directed at diff erent types investment projects have been realised by the of projects than before the crisis. HSBC bank, which opened a software and ap- The performance of the domestic Informa- plication development centre within its exist- tion Technologies industry should be boosted ing centre of shared services in Ostrava, and by direct foreign investments that have been Solarwinds Software Europe Limited with its fl owing into this fi eld in recent years. Sun Mi- software development centre in Brno. crosystems became the Investor of the Year The aforementioned information makes it 2005 with the greatest economic contribution clear that the Czech Republic has become to the sector of strategic services because of an an important centre for the provision of investment in its Prague development centre. high-value added services in recent years. The following year, IBM was given this award A Gartner Group study on the countries ideal POSITION OF THE ICT SECTOR in the area of strategic services, after opening for off shore IT services names the Czech Re- There were 31 000 economic entities oper- its centre for the outsourcing of Information public in the regions of Europe, the Middle ating in the ICT sector in the Czech Republic Technologies in Brno in April 2006. East, and Africa as being in fi rst place ahead

in 2008, 80% (25 000) of which were active In June 2006, Hewlett-Packard opened its of Hungary, Ireland, and Israel. www.sxc.hu Photo: in fi elds falling within the IT services. How- regional headquarters for Europe, Middle-East, ever, the majority of them (over three quar- and Africa for the management of produc- ters – 19 000) were individual businessmen tion and distribution of personal computers – self-employed people. and printing and image processing products. 150 000 people were employed in the ICT Honeywell founded a global centre for the sector in the Czech Republic in 2008 and same area, for the support of its aviation pro- their contribution to the overall employ- duction in Prague, which made it two devel- ment in the Czech Republic reached 2.8%. opment centres for the company in Prague. Almost half of all people working in the ICT At the end of 2006, Google, one of the largest sector in 2008 were employed in IT services. companies doing business on the Internet, also opened its branch in Prague. ICT MARKET Mobile Technologies Support Center, built In recent years, the Czech market of the In- by the software giant, Microsoft, became op- formation and Communication Technologies erational in January 2007. Microsoft, in co-op- (ICT) has copied the economic development eration with the South Moravian Innovation of the Czech Republic by recording a tumul- Centre (JIC), then opened the Microsoft Inno- tuous growth. While it is diffi cult to estimate vation Center in Brno the following year, to the overall impact of the global economic cri- support start-up companies, especially from sis in the fi eld of the ICT in the Czech Republic the area of IT. Microsoft opened another such at this time, it is evident, on the basis of pre- centre in Hradec Králové at the beginning of liminary data from the international analytical 2010. A new service centre was opened by company, IDC, that the whole ICT market re- the Computer Sciences Corporation in 2007, corded a year-on-year decline of 4.9% to CZK providing a broad range of services in the 91.4 billion (approx. EUR 3.66 billion). area of Informatics Technologies.

| 18 CZECH BUSINESS AND TRADE

SUCCESS OF CZECH ICT a draft and an implementation of middle- administration services provided to compa- COMPANIES ABROAD ware. OKsystem should also be participating nies and citizens more eff ective, by modi- There are many Czech ICT companies that in the subsequent BioP@ss project that will fying processes with the help of available have made a breakthrough abroad. Many mainly make use of biometric methods. Information and Communication Technolo- successful companies, such as LANGMaster The example of Bohemia Interactive Stu- gies. In 2008, the Government approved International, CN Resources International, dio shows there is still room for innovative a document called “Strategy for the Devel- 2N telecommunication, and many others solutions. Based on the world-famous game, opment of Services for the Information Soci- abroad have proved the quality of Czech IT Operation Flashpoint, and its newer engine, ety in the Czech Republic for 2008–2012”. Its professionals. the Australian branch of the company, Bo- main purpose was to allow citizens and the The success of Czech companies from the hemia Interactive Australia, has created the business public to conveniently, securely, fi eld of Information Technologies was spear- Virtual Battlespace Systems 1, a tactical sim- and reliably communicate with the public headed by Software 602 at the beginning ulator for the military in the USA, the United administration at all levels and regarding as of the ‘90s. The fame of the “ageless” T602 Kingdom, Australia, and other countries. It many life situations as possible. text editor is now emulated by other Czech is a three-dimensional training system for This strategy is being implemented through companies. teaching tactics to small units. A new gen- a series of mutually interconnected projects; AVG Technologies CZ (formerly Grisoft) eration of this military training game, devel- the projects are divided into fi ve programme from Brno has seen a great amount of in- oped according to NATO requirements for areas. Businessmen will fi nd Area 2 useful ternational success. It is one of the largest the preparation of soldiers for Afghanistan because it includes, among other things, exporters of anti-virus software (65% of the and Iraq missions, is already being realised the introduction of universal contact points company was acquired by Intel Capital and in Prague. Czech companies have also seen (Czech POINT), allowing citizens to perform Enterprise for EUR 43.23 million in 2005). much success in the fi eld of games for mo- a number of actions in one place, including Prague‘s OKsystem expands the not-so- bile phones, as evidenced by the multi- the acquisition of statements from: the Driv- numerous ranks of successful Czech solution player logical game, Multiplayer Reversi, ers‘ Point Register, the Criminal Records, the providers for European research projects. developed by the Czech company Geewa. Real Estate Register, and the Trade Register. It The company has been developing a solu- In June 2008, it became the most popular is also possible to submit a form to the Trades tion for EU identifi cation cards during the application for the iPhone smartphone by Licensing Offi ce. three-year Onom@topic+ project (Europe- Apple, Inc. an Smart Card Platform for Citizenship and LOW RATE OF Mobile Multimedia Applications). A consor- E-GOVERNMENT SOFTWARE PIRACY tium of 17 organisations from 7 countries IN THE CZECH REPUBLIC According to the results of BSA (Business co-operated on this project. The result is The Government of the Czech Republic Software Alliance) statistics, the rate of a draft of a chip card operating system and pays a lot of attention to making the public software piracy in the Czech Republic was 37% in 2009, which was two percentage points less than the year before. The Czech Republic has managed to lower the rate of piracy from the original 66% in 1994 by 29 percentage points. These numbers put the Czech Republic in the 13th place worldwide when measuring the percentage of illegal software.

IT IN THE CZECH REPUBLIC IS COMPARABLE TO THE DEVELOPED WORLD In conclusion, it can be said that the Czech Republic represents a highly competitive market in the area of ICT, with discriminat- ing customers and competent local business entities, whose business culture is comparable to similar entities in the EU or OECD countries.

Miloslav Marčan CIO, Ministry of Industry and Trade www.mpo.cz www.businessinfo.cz

19 | SERVICES

The Goal Is to Keep the Customer Satisfied

Your firm offers CRM systems. Can comparable data across all customer seg- you briefly introduce this term – what ments. A CRM system allows companies does CRM stand for and how long has it to quantify all the unique and standard been in the market? characteristics of a client and the client CRM stands for Customer Relationship relationship so that both the selling and Management and refers to a company‘s customer service models are appropriate entire strategy for interacting with cus- to the context. tomers, clients, and sales prospects. As a strategy, CRM includes all the basic prin- What do you consider to be your com- ciples of good sales, such as knowing your pany‘s biggest success lately? customer, understanding their needs and To have seen strong growth in our cus- motivation, etc. As a set of practices, CRM tomer base during the crisis period. The is as old as business itself. It includes all of last quarter of 2009 was probably our best the channels a company uses to commu- period so far, and this year has seen a lot of nicate with clients as well as the methods new customers switch to eluzzion CRM as of assessing and responding to customer well. We‘ve attracted major global brands needs. As a technology solution, howev- like Apotex and Novartis as well Gedeon er, CRM systems have only been around Richter, Glenmark, and Stada. Our clients for about 20 years. choose eluzzion CRM because they real- We asked Mr Joshua Mensch, the ize first, it is an incredible product, and Marketing Director of Data3s, a CRM How does a CRM system support second, Data3s is a company that is truly customers? dedicated to their success. We see our company dedicated to the devel- A CRM system supports customers by im- customers as real partners – and that‘s not opment of high-quality solutions proving customer service, which in turn just a marketing slogan. In many cases, powered by Microsoft technologies. improves customers loyalty and reten- we have been fortunate to have potential tion. The goal is to keep the customer customers approach us first based on the satisfied so that you can continuously recommendations of their colleagues in improve and grow the business rela- other companies. When one client refers tionship. But because each customer is you to another, I think that is your great- different, you need a system that is so- est success. phisticated enough to respond to each customer differently, while maintaining More information at www.data3s.com

Keeping One‘s Firm Safe…

The Czech Security Branch Organi- We asked the president of the Czech Se- sations Club is one of the oldest profes- curity Branch Organisations Club, Vladimír sional organisations in the field of com- Rambousek, what developments he sees mercial security in the Czech Republic. on the Czech market and what we can ex- It was founded in 1993 and its members pect in the future. include companies providing protection of property and people, private investiga- Mr Rambousek, what is it the Czech Secu- tors, and companies providing technical rity Branch Organisations Club does? protection of property and people. The Our main goal is to improve the social pres- membership base of the Club is currently tige and standing of fi rms operating in the formed by 36 firms. The Club is a trades- fi eld of property and people protection. We men‘s association of the Czech Chamber also contribute to the creation of a positive of Commerce. It serves as the spokesper- image of the fi eld in the eyes of the public, son of the Czech Chamber of Commerce and cooperate on the creation of suitable for the field of property and people legislative, economic, and social conditions

protection. for the performance of property and people Data3s archives www.sxc.hu, Photo:

| 20 CZECH BUSINESS AND TRADE

protection. We perform competence exam- fessional competency for security employ- scription of activities of security employees inations of security employees. ees. Every employee in active service will transporting money, members of tactical have to pass an examination of professional units used by panels of centralised protec- How developed is the Czech market in this competence from 1 January 2012. The ex- tion, and organisers at sport events. area? amination will be carried out by a three- 6 500 entities (self-employed persons and member committee under the supervision What do you think will infl uence this mar- legal entities) operate on the private secu- of an authorised person. Successful candi- ket in the future? rity services market, which includes prop- dates will receive a certifi cate of professional The Czech Security Branch Organisations erty and people protection, investigative competence valid for 10 years. Club actively collaborates with other associ- services, and technical security services. The ations of the Czech Chamber of Commerce overall annual amount of provided services Are there any recent interesting develop- on the preparation of a new legislature. The is estimated to be CZK 20 billion (i.e. approx. ments in the fi eld? Something that caught new Act on Private Security Services should EUR 755 mil.) Security services are also an your attention? bring a major change to the business of pri- important employer in the Czech Republic, The realisation of the public contract called vate security services. These services should with over 50 000 employees working in the Sector Council II is just starting. It is a joint be excluded from the Trades Licensing Act fi eld. project of the Czech Chamber of Com- and regulated by an independent law. This merce, the Confederation of Industry of the change will bring greater authority to secu- Is there any diff erence between the Czech Republic, and the consulting com- rity service employees, along with greater situation in the Czech environment and pany Trexima. The aim of the project in the demands on the professional standard of abroad in this fi eld? area of private security services is to prepare the employees doing this work. And conse- Private security services are an indispensa- professional standards for individual “skills”. quently, better services for customers and ble part of the economy. This is true domes- We expect the output to include the de- a higher social prestige for the fi eld. tically, as well as abroad. The eff ects of the economic crisis are also seen in the business of private security services, the Czech market is defi nitely not diff erent in this regard. Economy measures in many companies cause a decline in their purchasing of security guard services and pressure on price reduction. The decline in revenues from these services causes severe existential problems for some security fi rms. On the other hand, the positive consequences of the crisis are also seen. Infl exible companies leave the market, new technologies are adopted faster. The main reason for the deployment of new technologies is to lower human resources costs.

What are the new trends in security equipment and the security industry? There is a worldwide trend, and the development in the Czech environment is the same, which sees physical security guards of outside areas replaced by motion detector camera systems. This enables faster linking of security services with other services.

Are there any legislative news or regulations which need to be paid attention to in this area in the Czech Republic? The amendment of the Trades Licensing Act valid from 1 January 2009 has brought a major change for businessmen in the fi eld of private security services. The amendment introduces obligatory examinations of pro-

21 | YOUNG STAR Scientists from Brno Discover Bambusuril, a Compound with Unique Qualities

Scientists from Masaryk University in hope that Bambusuril could be used to EUR 60 000) and the University covered the Brno have discovered an entirely new remove dirt from waste water or to prepare costs associated with employee wages. ion exchangers. compound with broad application poten- Did you co-operate with other similar tial in health care and the pharmaceutical How would you describe the research? foreign or domestic institutions during and food processing industries. The scien- I formerly researched the qualities of an- the research? other similar compound, called Cucurbituril. The research took place exclusively at Ma- tists are able to prepare large quantities The trouble with Cucurbituril molecules was saryk University. Jan Švec, a student in the of the compound which has not existed that they did not dissolve well and it was dif- Chemistry programme, contributed a great in nature until now. Masaryk University fi cult to modify their surface to make other deal to the completion of the compound. uses possible. Because of that, the strategy Švec had started Bambusuril synthesis dur- has applied for patent protection of of our research team was to come up with ing his graduate studies and completed it the compound. We asked Dr. Vladimír a new compound that would signifi cantly after several years, at the PhD level. Šindelář, the head of the research team improve the listed qualities. This has really been achieved with the creation of Bam- Masaryk University had the compound of the Department of Chemistry of the busuril. Masaryk University has submitted patented. Is there a chance for the com- Faculty of Science at Masaryk University, a patent application and the synthesis and mercial application of Bambusuril? In about the project details. characteristics of Bambusuril were subse- what fi elds? quently published in the prestigious science We have had Bambusuril at our disposal for magazine, Angewandte Chemie. about a year now and we do not know all its qualities yet. Only a detailed analysis of the Your team searched for a compound that Is it easy to prepare the compound? What compound‘s characteristics will hint at other could be “programmed” so that the com- is the origin of the Bambusuril name? possible uses. We are now (June 2010) work- pound itself could look for and eliminate All source compounds and dissolution agents ing to prepare new derivatives of Bambusuril. harmful substances – in the human body, used during the preparation of Bambusuril Besides the proposed types of application, food, or drinking water. Have you suc- are relatively easily available and cheap. Also, other entirely new possibilities may appear in ceeded? Can you name some other pos- the clean substance separates from the solu- the future. We have submitted a patent ap- sible uses for the Bambusuril compound? tion in the form of a precipitate during prepa- plication at the national level so far. It is be- The unique properties of Bambusuril lie in ration, which means no fi nancially demand- ing considered whether Masaryk University its capability to bind negatively charged ing separation methods need to be used for should apply for an international patent as substances and function as their transport- its isolation. The compound has the shape of well. Such an application is much more costly er. This means Bambusuril is able to capture a short, hollow tube and is remarkably similar and the possible uses of the compound have some substances from a solution by stor- to one joint of a bamboo stalk. to be outlined more clearly before its sub- ing them within itself, as if in a container. mission. Apart from our examination of the The substance stored within it can then How long was the research and how much characteristics of Bambusuril, we are also try- be transferred to another location, where did it cost? ing to approach the business sphere, whose it is released. Thus, Bambusuril works like The research took fi ve years and was fi - reaction could give us an idea about future a transporter that loads a substance and nanced by the Grant Agency of the Czech interest in the compound, and its uses. transports it from one location to another. Republic and Masaryk University. The Grant Bambusuril has great future potential for Agency provided CZK 1.5 million (approx. Jana Pike the health care and food processing industries. Scientists can see Bambusuril used, for example, to detect the presence of salt in the bodies of patients. A higher concentration of salt, or sodium chloride, in the human body can be a sign of some diseases, such as cystic fi brosis. Bambusuril could be used to prepare sensors that would detect a higher concentration of salt upon contact with a very small amount of human blood or urine, by, for example, a change in colour. The sensors would use this method to quickly and accu- rately inform the doctor whether there are any symptoms in the patient. A similar method could be used to determine the quality of food or even to clean water. There is also

| 22 Jan Švec and Vladimír Šindelář from the Department of Chemistry of the Faculty of Science at Masaryk University. KALEIDOSCOPE

Industry Is Continuing Its Revival and Helps to Boost Exports Fitch Raises Czech Rating from Stable to Positive In April 2010 industrial production in the At the beginning of June, the Fitch Rat- finance reform, in particular the reform CR rose by 10.9% year-on-year and the ings Agency confirmed its rating for the of the pension and health care systems, revival in the industry sector is continu- Czech Republic to be A+, and improved could lead to an even higher rating, Fitch ing. This has a favourable effect on the its outlook, raising it from stable to posi- says. The rating of long-term Czech for- country’s balance of trade, which in that tive. The Agency thus reflected the ex- eign exchange liabilities is on the level month showed a surplus of CZK 15.4 bil- pected faster budget deficit reduction A+ with a positive outlook. The rating of lion. Export trade owes its improvement primarily to cars, electrical equipment advocated by the new government. domestic currency liabilities remains on and devices, and machines and equip- A successful introduction of the state the AA- level. ment used in industry. Czech imports rose by 12.9% year-on-year. Among other factors, the increase reflects the higher commodity prices.

Financial Evaluation Motivates Employees only Temporarily Financial evaluation always ranks fi rst in the Czech Republic, according to a survey carried out by LMC, operator of the labour portals jobs.cz and prace.cz, and the Factum Invenio Agency. For most job seekers (47%) the decisive factor in choosing their latest employment has been payment conditions. The next criterion was the labour content (20%), followed by the long-term perspective of employment (8%) and the working hours (7%). Criteria such as career prospects and long-term development or the fi rm’s reputation, were important for a mere 2% of the respondents. Other advantages, or the atmosphere in the fi rm, were Do Czech Firms Already decisive for just 4% of job-seekers in choosing Feel the Signs of Economic Revival? their positions. The fact that money and generous benefi ts are not suffi cient for the long- According to a TACOMA survey, demand out that the recession had no impact on term motivation of employees is confi rmed by for the products of Czech companies has their business and so the current situation Dagmar Šimonová, Human Relations Manager been rising moderately since the begin- was the same for them as last year. of LMC, who says: “Senior employees, who al- ning of the year; in 2010, revenues are ex- ready have some experience, at a certain stage pected to be higher, but there will proba- of their life opt for work with an employer who bly be no investment in new projects and will off er them the possibility of participating no new work opportunities. The survey has in interesting projects. Their motivation is the revealed that 62% of respondents (a sam- opportunity to work for an employer who ple of 130 important Czech companies) will off er them a share of responsibility and have already witnessed signs of revival. the possibility to infl uence important projects Their answers, however, confirmed that which the fi rm realises.” On the other hand, the in most cases the revival manifests itself most demotivating for employees is the non- by a very moderate growth of demand, or observance of agreements on the part of the rather by the halting of last year’s fall in employer, excessively authoritative manage- demand. Ten per cent of the respondents ment, zero pay growth, impossibility of profes- said that now the situation was rather sional and career development, and non-par- worse than in the previous period. An-

Photo: Masaryk www.sxc.hu Photo: University archives, ticipation in teamwork. other ten per cent of respondents pointed

23 | REGION

Moravia-Silesia Region

The Moravia-Silesia Region has GERMANY Liberec POLAND ranked among the most impor- Ústí n/L Karlovy Vary Hradec Králové Bruntál tant industrial regions in Central Praha Pardubice Ostrava Opava Plzeň Olomouc Ostrava Europe for 200 years. It is situated Karviná

in the north-east of the Czech Jihlava Nový Jičín Brno Zlín České Republic; its northern neighbour Budějovice Frýdek-Místek is Poland and its eastern one is SLOVAKIA AUSTRIA Slovakia. This is the most populated region of the REGIONAL CAPITAL, OSTRAVA Czech Republic – it contains very densely Ostrava is the largest city in the Region, the populated towns and districts, and other third largest city in the Czech Republic with areas with virtually no inhabitants. The major the third largest number of inhabitants. It has part of the Region has an industrial charac- an advantageous strategic position, near the ter and its main wealth lies in the deposits of Slovakian and Polish frontiers, on the banks quality black coal, which reach as far as the of the Ostravice River, off ering a view of the Beskydy foothills. wonderful Beskydy range. The turning point The power and metallurgical industries in the history of the city was the discovery of have the largest share, although these sec- coal deposits in the second half of the 18th tors are being restructured and are reducing century, which was later followed by the de- production. velopment of ironworks. Ostrava lost the face The Region has the most burdened envi- of a typically industrial city long ago, coal ronment in the Czech Republic. Although mining having defi nitively ceased in 1994. the quality of air has been greatly improved, Extensive investment in environmental it is still very polluted, especially in the area improvement was a boon to the air in Os- of the black coal basins. On the contrary, the trava. Increased emphasis is being placed Beskydy and Jeseníky Mountains are sparsely on engineering and other sectors. The city populated, making them popular tourist is becoming the point of departure for the destinations. The centre of the Region is Os- tourist region of the Jeseníky and Beskydy trava. The structure of sectors in the Moravia- Mountains. In addition to a hundred hectares Silesia Region is causing serious problems, of reclaimed land, the city has a number of connected mainly with a higher rate of original natural localities, many of which are unemployment. maintained as protected areas.

Population DISTRICTS Area Number of density NUTS Population (in sq. km) municipalities (persons/sq. Bruntál District km) The surroundings of the town of Bruntál used LAU 1 – Bruntál 1 536 97 633 67 64 to be a mining area, which was prosperous LAU 1 – Frýdek-Místek 1 208 211 482 72 175 due to precious metal extraction. The most important sectors at present are the manu- LAU 1 – Karviná 356 273 137 17 772 facture of plastic materials, lighting fi xtures, LAU 1 – Nový Jičín 882 152 563 53 173 LAU 1 – Opava 1 113 177 133 77 159 DISTANCES BETWEEN LAU 1 – Ostrava - město (city) 331 335 425 13 1 016 OSTRAVA AND EUROPEAN NUTS 3 – Moravia-Silesia Region 5 426 1 247 373 299 230 CITIES: Bratislava 295 km NUTS 1 – Czech Republic 78 867 10 506 813 6 249 133 Vienna 370 km Source: Czech Statistical Offi ce (as of 30 September 2009), NUTS – territorial unit according to EU classifi cation, LAU 1 = district Prague 380 km Warsaw 400 km Latest Data: Moravia-Silesia Region Budapest 495 km Berlin 530 km Population As of 31 Dec. 2009 1 247 373 Brussels 1 275 km Gross wages 1st quarter 2010 CZK 20 690 (EUR 828) Paris 1 410 km Unemployment As of 31 May 2010 11.61 % Rome 1 480 km

| 24 CZECH BUSINESS AND TRADE Ostrava - Masaryk Square at night

POINTS OF INTEREST The town of Kopřivnice, renowned for the manufacture of Tatra automobiles (founded in 1850). The fi rst automobile in Central Europe was manufactured here (Präsident, 1897). Sigmund Freud, famous Viennese physician and psychiatrist, founder of Psychoanalysis, was a native of Příbor. The house where Freud was born has been ceremoniously opened; items on display include the famous sofa, on which he examined his patients in London. Leoš Janáček, world-renowned classical composer, was a native of Hukvaldy. Stodolní Street in Ostrava, which never goes to sleep: the largest concentration MORAVSKOSLEZSKÝ KRAJ Czech Republic of pubs and restaurants in the Czech (MORAVIA-SILESIA REGION) Phone: +420 596 387 111 Republic is to be found in this street and its KRAJSKÝ ÚŘAD e-mail: [email protected] immediate vicinity (www.stodolni.cz). (REGIONAL OFFICE) www.karvina.cz 28. října 117, 702 18 Ostrava Czech Republic NOVÝ JIČÍN Karviná District Phone: +420 595 622 222 MĚSTSKÝ ÚŘAD NOVÝ JIČÍN The eastern and northern boundaries of e-mail: [email protected] (NOVÝ JIČÍN MUNICIPALITY) the Karviná District are the Polish frontiers. www.kr-moravskoslezsky.cz Masarykovo náměstí 1, 741 01 Nový Jičín The construction of mines and the follow- Czech Republic up coking, iron, metallurgical, and chemical BRUNTÁL Phone: +420 556 768 222 industries, and the transport infrastructure MĚSTSKÝ ÚŘAD BRUNTÁL e-mail: [email protected] commenced in the 19th century. But a rapid (BRUNTÁL MUNICIPALITY) www.novy-jicin.cz reduction in heavy industry started in the Nádražní 20, 792 01Bruntál Czech Republic OPAVA 1990s, as it did in other areas of the Region. Phone: +420 554 706 111 MAGISTRÁT MĚSTA OPAVA Economically ineff ective mining in the Dis- e-mail: [email protected] (OPAVA CITY COUNCIL) trict was terminated. The impetus for invest- www.mubruntal.cz Horní náměstí 69, ment happened gradually with the construc- 746 26 Opava tion of large industrial zones for businesses FRÝDEK-MÍSTEK Czech Republic of greater extent – “Nové pole” in Karviná, MAGISTRÁT MĚSTA FRÝDEK-MÍSTEK Phone: +420 553 756 111 “Pod zelenou” in Český Těšín, and support for (FRÝDEK-MÍSTEK CITY COUNCIL) e-mail: [email protected] businesses in other towns and villages. State Radniční 1148, 738 22 Frýdek-Místek www.opava-city.cz subsidies went towards these purposes. Czech Republic Phone: +420 558 609 111 OSTRAVA Nový Jičín District e-mail: [email protected] MAGISTRÁT MĚSTA OSTRAVA www.frydekmistek.cz (OSTRAVA CITY COUNCIL) Nový Jičín is an industrial and farming dis- Prokešovo náměstí 8, trict. Industrial production is concentrated KARVINÁ 729 30 Ostrava in the towns. The ownership share of for- MAGISTRÁT MĚSTA KARVINÁ Czech Republic eign companies is on the rise in many en- (KARVINÁ CITY COUNCIL) Phone: +420 599 444 444 terprises of the Region. The District has rich Fryštátská 72/1, 733 24 Karviná e-mail: [email protected] reserves of raw materials for the manufac- pošta Karviná – Fryštát www.ostrava.cz ture of building materials (such as lime- stone, gravel sand, brick earth, and building wires and spools, but the pharmaceutical of the Silesian town of Frýdek with Moravian stone). The environment has been notice- and food industries are also doing well. In Místek. The economic potential of the Dis- ably improved since the early 1990s, due general, the District has the character of an trict and the present structure have been to the reduction of industrial production, industrial and farming area, employment strongly infl uenced by the long historical the use of more environmentally friendly is concentrated in engineering, textile, and development. The District always had an techno logies, and massive investment in woodworking enterprises. agricultural-industrial character with a pre- ecological measures. This improvement was valent share of industry. The economic core also infl uenced by a change to heating with Frýdek-Místek District of the District was metallurgy plus mining. energy sources that are a lesser burden to The Frýdek-Místek District is situated in the Investment has now been focused on the the environment. easternmost part of the Czech Republic. Its construction of a new infrastructure, prepa- centre, Frýdek-Místek town, which is spread ration of industrial zones, environmental Opava District out on both banks of the Ostravice River, protection, and the building of petrol sta- Industry in this District is traditionally

Photo: CzechTourism Photo: originated in 1943 through the integration tions, hypermarkets and supermarkets. more diversified than industry in the

25 | REGION

IMPORTANT COMPANIES IN THE DISTRICT ACCORDING TO TURNOVER Name Based in Sector Contact AL Invest Břidličná, a.s. Břidličná aluminium production www.alinvest.cz Continental www.siemens.cz Frenštát pod Radhoštěm manufacture of parts and accessories for motor vehicles and their engines Automotive Systems www.siemensvdo.cz www.zdb.cz ŽDB Group, a.s. Nový Bohumín letting of own property www.viadrus.cz www.autopal.cz Visteon - Autopal, s.r.o. Nový Jičín manufacture of parts and accessories for motor vehicles and their engines www.visteon.cz www.asus.cz Asus Czech, s.r.o. Ostrava – Hrabová manufacture of computers and other information processing equipment www.asusteam.cz Evraz Vítkovice Steel, a.s. Ostrava – Hulváky manufacture of basic iron and steel and of ferro-alloys www.vitkovicesteel.com Ivax Pharmaceuticals, s.r.o. Opava – Komárov manufacture of basic pharmaceutical products www.ivax-cr.com ArcelorMittal Ostrava a.s. Ostrava – Kunčice manufacture of basic iron and steel and of ferro-alloys www.mittalsteelostrava.com BorsodChem Mchz, s.r.o. Ostrava – Mariánské Hory manufacture of other organic basic chemicals www.bc-mchz.cz eD´ system Czech, a.s. Ostrava – Mariánské Hory wholesale of computers, computer peripheral equipment and software www.edcz.cz Hruška, s.r.o. Ostrava – Martinov wholesale of fruit and vegetables www.hruska.info Ostrava – Moravská OKD, a.s. mining and agglomeration of hard coal www.okd.cz Ostrava TCHAS, spol. s r. o. Ostrava – Poruba general construction of buildings and civil engineering works www.tchas.cz www.okk.okd.cz OKD, OKK, a.s. Ostrava-Přívoz manufacture of coke oven products www.okd.cz www.watrex.com Vítkovice, a.s. Ostrava – Vítkovice distribution and trade of electricity www.vitkovice.com Finitrading, a.s. Třinec – Lyžbice wholesale of metals and metal ores www.trz.cz, Moravia Steel, a.s. Třinec – Staré Město wholesale of metals and metal ores www.moravia-steel.cz Třinecké Železárny, a. s. Třinec – Staré Město manufacture of basic iron and steel and of ferro-alloys www.trz.cz Source: Albertina Company Monitor Moravia-Silesia Region in general. For involved in the cross-border co-operation this reason, it had better prerequisites of Euroregions. TRANSPORT for adaptation to market conditions after The Moravia-Silesia Region has a total of the 1989 turnabout. An important part of The Moravia-Silesia Region Off ers: 3 376.4 km of roads. It has a strategic posi- this process was the privatisation of State trained labour for industry, tion along the borders of three countries: enterprises. very good knowledge of traditional indus- the Czech Republic, Poland, and Slovakia. trial sectors (engineering, the steel, chemi- Thanks to this advantageous position, the ECONOMIC POTENTIAL cal, and textile industries), Region is situated at the intersection of The heavy industry is being gradually re- scientifi c research centres and institutions two transport corridors: West – East (Ger- placed with light industry and services. The (Information Technology, Biotechnology, many – the Ukraine) and North – South development of business in the market en- progressive materials), (Scandinavia – Italy). vironment has changed its structure beyond four universities, The Region has a very dense network of recognition. Many restructured enterprises industrial zones, science and technology railway lines, with a total length of 677 km. have been purchased by foreign investors. parks, business incubators, All railway lines in the Moravia-Silesia Region Local companies did well in Information very dense infrastructure, are operated by České dráhy, a.s. (Czech Rail- Technologies, electronics, electrical engi- advantageous situation between Poland ways www.cd.cz). International rail transport neering, and the automobile industry. There and Slovakia, is very important to the Region. An impor- are also many big and small enterprises transit corridor – road intersection and tant role is played by freight transport. Due which operate in traditional crafts, as well as railway junction, to large industrial enterprises, the railways in hi-tech products. branches of foreign banks, carry huge amounts of solid fuels, metal- The Moravia-Silesia Region off ers opportu- main international retail chains, lurgical and chemical products, and mineral nities for a broad range of new investment international airport with the potential for raw materials. projects and for the development of poten- expansion, Mošnov International Airport (www.airport- tial and possibilities. Domestic and foreign excellent cultural opportunities (opera, ostrava.cz), 20 km from Ostrava, is an impor- investors can utilise the existing industrial philharmonic orchestra, theatre, galleries), tant point of entry to the industrial area of complexes and new industrial zones. innumerable possibilities for leisure-time Northern Moravia and Silesia, the area with In view of the situation of the Moravia- activities and sports, the largest concentration of economic po- Silesia Region, many towns and villages are European standards of health care. tential in the Czech Republic.

| 26 CZECH BUSINESS AND TRADE

SELECTED INSTITUTIONS PROMOTING BUSINESS IN THE MORAVIA-SILESIA REGION: Moravia-Silesia Solidarity Regional EDUCATION Since 2007, the Moravia-Silesia Region Council, www.rr-moravskoslezsko.cz The Region has a total of 472 nursery has acquired approximately CZK 36 billion Eurocentrum Ostrava, www.euroskop.cz schools, 459 elementary schools, 156 sec- (EUR 1.45 billion) from the EU. It has agreed Regional Development Agency, ondary schools, 2 conservatoires, 11 higher with four partners on the establishment www.rdaova.cz vocational schools, and 5 colleges and uni- of a European group for territorial co-op- Ostrava Science and Technology Park, www.vtpo.cz versities. The network of pre-school and eration. Closer co-operation has also been Moravian-Silesian Regional Chamber of school establishments and institutions of- agreed upon by offi cials of the Chambers of Commerce, www.khkmsk.cz fers extra-mural activities and education at Commerce of the border areas, who intend BIC Ostrava, www.bicova.cz all levels. University studies in Humanities, to concentrate, in addition to the transport CzechTrade, www.czechtrade.cz Economics, Natural Sciences, and techni- infrastructure, on the environment, educa- Czech Statistical Offi ce, www.czso.cz cal branches are very well developed in the tion, science and research. The joint inter- Czech Property Market, www.eCPM.cz, Moravia-Silesia Region. ests of Czech-Polish co-operation are also (community server for professionals in asserted by the Euroregion Silesia, which real estate, construction, development, Border areas of the Czech Republic, has won a number of awards, including an and related branches) Poland, and Slovakia have a separate Honorary Mention of the Association of Eu- subsidy programme ropean Border Regions, which it gained in OTHER FOREIGN CO-OPERATION In view of the geographic situation of the November 2006 for extraordinary success Although the Moravia-Silesia Region does not Moravia-Silesia Region on the borders of in European cross-border co-operation. In share a frontier with Germany, it has been co- Poland and Slovakia, its officials and their 2007, the Czech Foreign Ministry bestowed operating with North Rhine-Westphalia since Polish and Slovakian counterparts want the Jan Masaryk Silver Medal on the Czech 2002. Co-operation with the Region North their own European Union subsidy pro- and Polish sides of the Euroregion for their East, Great Britain, has been slightly stagnat- gramme to finance projects, for instance, long-term active contribution to Czech- ing. Present partners of the Region which are in transport, tourism, and the power Polish cross-border co-operation (www. not EU members, are in Russia (Vologda Re- industry. euroregion-silesia.cz/). gion) and Vietnam (Khanh-Hoa Province).

Organiser: 11th Annual International Conference

A particular attention will be paid to the cross-border cooperation within the Czech Republic – Poland – Slovakia triangle, where economically powerful regions are located: Silesian and Opole Voivodeships, Žilina Region and Moravian-Silesian Region.

Topics to be discussed and presented at the conference will include economic collaboration, investments, science, research and innovation, commercial activities, and entrepreneurship. Information will be provided about new initiatives supported by the European Grouping of Territorial Cooperation, Jessica (a ﬁ nancial tool for the development of towns and cities), and projects co-ﬁ nanced by public and private funds (PPP).

The goal of the Conference is to offer efﬁ cient collaboration and introduce important and successful projects that might accelerate development of the entire economic Euro- region within the new cohesion policy pursued by the European Union.

Conference will be held under the auspices of: Ostrava Prime Minister Czech Republic, The Deputy Prime Minister and Minister of Foreign Affairs, Minister of Industry and Trade, The Minister of Education, Youth, Sports, President of the Moravian-Silesian 11 and 12 October 2010 Region, Lord Mayor of the City of Ostrava, Chamber of Commerce of the Czech Republic.

Clarion Congress Hotel Ostrava (formerly Atom Hotel) For further information and registration please visit www.ifo.cz

Main Partners: Partners: Media Partners:

27 | REGION

Moravia-Silesia Region: Gate to Investment Opens Wide

The steel heart of the Czech Repub- spol. s r.o. and TietoEnator, a.s.), the place their investment projects in the Region lic, as the region around Ostrava has chemical industry and specialised services the services of industrial parks (open spaces for diff erent fi rms (especially engineering, or surfaces already fi tted with the required long been referred to, is no longer consulting, and research fi rms). As regards facilities). The full comfort of a well-function- beating for industry alone: the 1990s the country of origin, most foreign investors ing infrastructure with follow-up services and saw large-scale restructuring of come to the Moravia-Silesia Region from the suitable conditions prepared for the investors’ USA, Germany, and South Korea. specifi c needs is a matter of course. industry in North Moravia, which led Evidence of the attractiveness of North to the growth of the region’s busi- REGION IN THE FOCUS Moravia is proved by the high occupancy ness potential, and consequently OF INVESTORS rate of the industrial parks in the Region. In 2009, through the mediation of CzechIn- The use and occupancy of the surfaces by its investment opportunities. Now, vest Agency, the Moravia-Silesia Region at- investors is a closely watched criterion in as- production and investment go hand tracted new investments worth more than sessing the attractiveness of those localities. in hand in Ostrava and its environs. one billion crowns. Altogether 26 projects The average occupancy rate of the industrial were placed in North Moravia in that year. parks in the Region is around 74%. As regards the number of new investments, The two most successful industrial parks the Moravia-Silesia Region ranks third in the Region are the parks in Karviná-Nové among the Czech Republic’s 14 regions, Pole and in Kopřivnice, where the largest after Central Bohemia and South Moravia. number of investors have settled. Visually, Since the 19th century, the Moravia-Silesia “Most frequently, our assistance in 2009 too, both localities give the impression of Region has been one of the Czech Republic’s went to software development fi rms and prospering industrial parks. In the 1990s, regions with strongly developed industry. At their new projects. The Moravia-Silesia Re- the Karviná locality was prepared as a pilot the time of its greatest industrial boom, the gion decided to realise twelve such projects, industrial park project on the territory of to- Region’s vast black coal deposits prompted eleven of them directly in Ostrava, and day’s Region. After a slightly hesitant start, the development of mining and the follow- the twelfth one in Orlová,” says Alexandra the locality took full advantage of its lead. up steel production and engineering. Cur- Rudyšarová, acting Chief Executive Offi cer The Krnov-Červený Dvůr locality also proved rently, more than one-third of the labour of CzechInvest. Three projects were pre- very successful and after some time had to force in the Region is employed in industry pared by engineering companies and two be enlarged, just like Karviná. Also success- creating nearly one-half of its product. each by companies operating in the area of ful are the Bolatice-type projects, mainly oc- Besides the traditional branches, forming electronics and electrical engineering, and cupied by smaller companies. the established “coal-steel-engineering” value the rubber and plastics industry. The Region demonstrated its skill and chain, the Region is known for the develop- ability to meet the investors’ requirements ment of yet other branches. In recent years, QUALITY GUARANTEED by its prompt preparation in Nošovice of the most massive investments went into the BY INDUSTRIAL PARK a strategic industrial park for the world car automotive industry (with a unique invest- The Moravia-Silesia Region has been trying manufacturer, Hyundai Motor Manufactur- ment project by Korea’s Hyundai Motor Man- to support the development of wide-rang- ing Czech (HMMC). The car factory started ufacturing Czech s.r.o. in Nošovice), IT and ing business and industrial activities since the trial operation in November 2008, two years electrical engineering (e.g. OSRAM Bruntál 1990s by off ering entrepreneurs wishing to after Hyundai’s appearance in the Czech Re- public, and launched serial production cer- The Orchard Ostrava Offi ce Park emonially in April 2009.

ONE-STOP SHOP FOR INVESTORS The task of ensuring the complete service for investors coming to the Moravia-Si- lesia Region was assumed by the Regional Development Agency in Ostrava, where it developed a unique project called One- Stop Shop. Through it, potential investors can obtain the fi rst information about the Region and get the fi rst impressions about the Moravia-Silesia Region. Together with CzechInvest and other regional institutions the Agency guides potential investors from initial presentations and the off er of in-

dustrial property to seeking out would-be archives CzechInvest Photo:

| 28 CZECH BUSINESS AND TRADE

The Hrabová Industrial Park is waiting for new investors.

sub-contractors and other suppliers for the construction and equipment of their plants, including outsourcing and aftercare. In this way, investors can obtain professional services from a single place, which cover all phases of the investment process. The full range of these services is available to the investors free as added value provided by the Moravia-Silesia Region over and above current investment incentives. As a part of aftercare, the Ostrava Regional Development Agency is developing its KREDO database (www.arr. cz/kredo/index_en.php), which connects investors with regional suppliers, thus build- DEVELOPMENT OF OFFICE ing a sub-contractor base. The Agency also SPACE MARKET IN OSTRAVA: stimulates the regional off er of commercial 2006 – 26 200 sq.m property through its RealData network. Con- 2007 – 37 800 sq.m 2008 – 11 000 sq.m sulting services are provided by the Regional year in the case of expanding companies). 2009 – 22 948 sq.m Economic Chamber of the Moravia-Silesia Re- Material support is available for the creation gion, for example in the area of cross-border of new jobs (EUR 2000 for the creation of one VACANCY RATE AS co-operation of Czech and Polish fi rms. job in regions most aff ected by unemploy- OF THE END OF: ment) and material support for training and 2007 – 23.2% GENEROUS INVESTMENT re-qualifi cation to the amount of from 25 to 2008 – 16% INCENTIVES 45% depending on the size of the fi rm. 2009 – 22% Both Czech and foreign investors coming to Q1 2010 – 21.9% the Moravia-Silesia Region to do business HIGH-QUALITY OFFICE SPACE COMPARISON OF THE are entitled to apply for local and national Besides well-prepared industrial parks the HIGHEST RENTS CHARGED investment incentives provided by the Region has a good supply of high-quality IN CLASS A BUILDINGS Czech Republic. offi ce space. Although the offi ce space mar- Prague - 21.00 EUR//month As from 2 July 2007, investors starting new ket (especially new construction) has been Brno - 13.50 EUR//month production projects or enlarging their exist- aff ected by the economic crisis, good-qual- Ostrava - 12.50 EUR//month ing facilities in the area of the manufactur- ity and above-standard offi ce space is read- Source: CB Richard Ellis ing industry worth more than EUR 2 million ily available. At the end of the fi rst quarter of can obtain investment incentives under Act 2010, Ostrava had 105 700 sq. m of modern no other offi ce building was completed by No. 72/2000 Coll. on Investment Incentives, offi ce space available, of which 74% in class the end of the 1st quarter of 2010, the mar- as amended. A. Completely new offi ce complexes are The ket has absorbed some of the vacant space, The main investment incentives off ered by Orchard (3rd phase) with an area of 11 000 so that the vacancy rate dropped to approx. the Region include, for example, corporate sq. m and Nordica Ostrava (11 900 sq. m). 22%. According to a study carried out by CB income tax relief (with full income tax relief In the fi rst half of 2009, 17 300 sq. m of new Richard Ellis s.r.o., the highest rent charged for up to fi ve years in the case of new compa- vacant offi ce space was placed on the mar- in Ostrava in March 2010 amounted to nies and partial income tax relief for up to fi ve ket, which resulted in a 29% vacancy rate. As EUR 12.50/sq.m/month.

SUCCESSFUL INVESTMENT PROJECTS IN THE MORAVIA-SILESIA REGION Investments Czech legal person Sector Country of origin Jobs Year Locality (EUR million) Behr Ostrava s.r.o. automotive Germany 20.0 130 2006 Mošnov CENTRAL EUROPE AIRCRAFT MAINTENANCE a.s. repair centre – aviation Czech Republic 42.0 176 2006 Mošnov Erdrich Umformtechnik s.r.o. metalworking Germany 30.3 61 2005 Krnov

Hyundai Motor Manufacturing Czech s.r.o. automotive South Korea 1 200 3 000 2006 Nošovice

Mölnlycke Health Care Klinipro s.r.o medical equipment Sweden 16.8 150 2001 Karviná OSRAM Bruntál spol. s r.o. electronic Germany 13.8 115 2004 Bruntál Frenštát pod Siemens Automobilové systémy s.r.o. automotive Germany 15.7 355 2004 Radhoštěm TietoEnator, a.s. information technology Finland 1.1 330 2005 Ostrava Source: CzechInvest

29 | REGION

Keyword of the Future? Innovation!

of special equipment for the power industry (often based on the use of waste), the development of special (measuring) appa- ratus and equipment for the metallurgical, mining, and engineering industries, and new methods of specialised engineering, particularly in heavy engineering. Research and Development is also being conducted in industrial automation, robotics, electronics, and the chemical industry.

TRANSFER AND HUMAN RESOURCES From the thematic point of view, the strategy is concentrated on four areas. The fi rst is the transfer of technologies to make more eff ective the existent systems of com- mercialisation of the results of science and research, to support the co-operation of knowledge institutions (universities and research institutes) with businesses, to establish and develop new spin-off and start-up companies, and to increase the intensity of the involvement of cluster organisations in Research and Development projects, in- The Moravia-Silesia Region is also Research and Development has a large cluding international ones. involved in the fashionable, but es- share in the advancement of the Moravia-Si- In the second thematic area, the devel- lesia Region. This is mainly due to the high- opment of human resources, the strategy sential trend called Innovation. This quality scientifi c background at universities is to raise the professional competences is why regional politicians have pre- and research institutions, and the innovative of human resources in the knowledge of pared a totally new strategy focused activities of private companies operating in economy in the transfer of technology, pro- the Region. An increasingly important fac- tection of intellectual property, and the re- on support for innovation processes tor in the development of innovation in the gional innovation system as such. Support in business. Region are institutions such as business in- for increasing the qualifi cations of human cubators, clusters, and technology parks. resources, as well as for attracting the best The Moravia-Silesia Regional strategy of foreign researchers to the Moravia-Silesia innovation in the 2010-2016 period is a new Region will be very important. milestone in its development, designed to increase the competitiveness of the Region INTERNATIONALISATION, on global markets. CO-ORDINATION, IMPLEMENTATION The third area, internationalisation, will be MORE THAN COAL-STEEL focused on support for the establishment of - ENGINEERING international contacts and know-how trans- Regarding sectors, strategy is based on tra- fer, increased participation of the Region ditional ones with development potential, in international projects of Research and and on the use of their unique know-how, Development, and support for the export which is typical only of this Region within performance of companies in the Moravia- the “coal-steel-engineering” value chain. Silesia Region. Besides this main specialisation, success The last area, the co-ordination and imple- is being attained in the research of progres- mentation of the regional innovation strat- sive areas – such as the development of egy, will cover matters relating to the consoli- new materials, lighting equipment, ventila- dation of the regional innovation system. tion and air-conditioning systems for the automobile industry, information techno- In co-operation with the Regional logies such as software for consultancy Development Agency Ostrava

and system integration, the development www.arr.cz eldy.cz www.brownfi www.sxc.hu, Photo:

| 30 CZECH BUSINESS AND TRADE

Money from Jessica Fund for Brownfield–Bruntál Regeneration

Brownfi elds in the Moravia-Silesia Region have become a very tempting attraction. The Region is the fi rst to use EU money for their regeneration, specifi cally through the Jessica Fund, and the fi rst in the Czech Republic, where European money can be used for the regeneration of post-industrial compounds. Brownfi elds, one of the potential investment opportunities in Ostrava and its environs.

Jessica, the Joint European Support for Sustain- non-returnable subsidies, Jessica off ers the able Investment in City Areas Fund, is a joint regions the possibility of getting the money initiative of the European Commission, the Eu- back and to use it again in the future to sup- ropean Investment Bank (EIB), and the Council port further investments. The instrument is of Europe Development Bank (CEB). Its aim is designed exclusively for the development to support sustainable investments, growth of towns and urban areas. and employment in urban areas. The princi- The conditions under which Jessica will pal idea is to ensure a more purposeful use of grant the loans or guarantees will be more money from European funds and with their advantageous than is current practice on help to draw the private sector into investment the market, but on the other hand the in- projects. Besides money from European funds, vestment projects must fi t into areas which the projects are to be fi nanced by EIB and com- the region plans to support through Jessica. mercial banks, together with private investors. Both private and public investors may apply for fi nancing from Jessica. JESSICA WILL GRANT ADVANTAGEOUS LOANS 20 MILLION EUROS While ordinary operational programmes IS AVAILABLE provide support exclusively in the form of The Jessica holding fund loan agreement was signed in February 2010 by Jaroslav SELECTED BROWNFIELDS IN Condition of locality: The locality is prepared Palas, President of the Moravia-Silesia Re- THE MORAVIA-SILESIA REGION for regeneration. The regeneration of the gion, and Matthias Kollatz-Ahnen, Vice- entire locality is possible. Feasibility study President of the European Investment Bank. KARVINÁ INDUSTRIAL PARK and building study are available. Jessica is a “fund of funds”, which currently (FORMER KOVONA) Current use: abandoned locality. disposes of an amount of EUR 20 million. District: Karviná Previous use of locality: military compound, Municipality: Karviná barracks, shooting-ground. Military barracks MONEY FOR BROWNFIELD GPS coordinates: 49°51‘52.376“N built in 1968, currently all surface parts of OWNERS the compound have been removed. 18°32‘40.523“E The Region is planning to use the sup- Type of locality: compound (surface with Surface of locality: 112 000.00 sq. m. port for the regeneration of unused in- buildings) Condition of locality: The locality is prepared ODRA COMPOUND – JAN ŠVERMA MINE dustrial structures. Originally, the EUR 20 for regeneration. Partial reconstruction is SERVICE DIVISION, OSTRAVA million was available from the Moravia-Si- possible/reconstruction of separate parts of District: Ostrava lesia Regional Development Programme the compound. Municipality: Ostrava for the support of such projects, but as Current use: partly rented for business GPS coordinates: 49°48‘1.132“N Regional President Jaroslav Palas said, it activities. 18°11‘54.334“E attracted no interest under existing con- Previous use of locality: industry, metallurgy. Type of locality: plot (surface without buildings) ditions. The Region therefore decided to Surface of locality: 122 000.00 sq. m. Condition of locality: The locality is not transfer the money into a new financ- prepared for regeneration. ing instrument. “The brownfields issue, Current use: none WESTERN ZONE, BRUNTÁL which involves a number of ownership District: Bruntál Previous use of locality: industry problems and other obstacles, can hardly Municipality: Bruntál Surface of locality: 101 000.00 sq. m. GPS coordinates: 49°59‘31.967“N be supported under current subsidy con- 17°26‘23.96“E A complete and updated review of brownfi elds in the Moravia- ditions,” Palas says. Type of locality: plot (surface without Silesia Region can be found at: buildings). http://www.brownfi eldy.org/brownfi elds-list/ 31 | REGION

Clusters - Direct Way to Suppliers

In the Moravia-Silesia Region the ditions for increasing the abilities and Moravian-Silesian Energy Cluster was most signifi cant industrial sectors full utilisation of local workforce as well as founded in the north of Moravia as an technical capacities (www.autoklastr.cz/). association of fi rms in power engineer- are organised in clusters, which gives ing. The Moravian-Silesian Energy Cluster the Region a new profi le and signifi - The HYDROGEN Cluster focuses primarily (MSEK) was established by seven mem- cantly simplifi es investors’ access to on research and development activities in bers. Among them are the energy group the fi eld of hydrogen technologies and on Dalkia Czech Republic, Regional Economic individual suppliers. The Region is the all-round development of specialists in Chamber, and the Technical University of the leading one in the Czech Repub- the fi eld of production, storage, distribution, Ostrava. According to the president of the lic in this respect. and usage of hydrogen (www.msunion. cluster and the head of the board of direc- cz/klastry/klastr-hydrogen-cz--o-s-). tors of Dalkia Czech Republic Zdeněk Duba, the cluster would like to cooperate on the The ENVICRACK Cluster’s activity is close- energy conception of the state, to develop ly connected to the science and research research in power engineering and sup- activities in the fi eld of renewable and alter- port regional farmers in the production of native energy sources. The cluster is aimed bio-fuel. One of the founding members of at utilising waste as the potential source for the cluster is also the VŠB – Technical Uni- To support joint development of clusters, pyrolysis technologies producing electricity versity of Ostrava. MSEK wants to infl uence the Agency for Regional Development sup- and thermal energy (www.envicrack.cz/) the legislation in the fi eld of power engi- ports the initiative called ClusterNet. Its task neering related to the prepared EU direc- is to create and coordinate network cooper- Knowledge Management Cluster is tives (www.msek.cz/). ation of the relevant persons who are active aimed at the development of information in the clusters. At the moment there are ten and communication technologies and busi- Cluster of Safety and Technology fo- clusters in the Region. ness knowledge transfer, especially in small cuses on the coordination and strength- companies in the Moravia-Silesia and Zlín ening of cooperation in the field of tech- The Moravian-Silesian Wood Process- Regions (www.kmcluster.cz/). nological safety research concentrated ing Cluster focuses on the support of the in the Moravia-Silesia Region, which has development of wood processing sector in Tourism Cluster (KLACR) has set as its a very suitable infrastructure and history the Moravia-Silesia Region. It has the ambi- objective to establish a competitive tourist linked to heavy industry and metallurgy. tion to become a signifi cant supplier and region, to coordinate activities in tourism, It also continues in the mission and activ- exporter of timber structures and innova- to communicate with the public sector, to ity of the Czech Technological Platform on tive components for timber structures and cooperate with entities in tourism and sup- Industry Safety, whose primary goal is to houses (www.msdk.cz/). port innovation at the same time. By provid- increase industry safety. ing successful cooperation of entities and The Czech Machinery Cluster’s objective companies active in tourism, KLACR wants WHAT IS A CLUSTER? is to establish a highly prestigious and mod- to make the Moravia-Silesia Region a prestig- A cluster is an association of regionally ern engineering platform which would be ious local and incoming destination provid- connected companies and affi liated prepared in human resources, technologies, ing high-quality services and increasing the institutions and organisations – especially and innovations for the formation of sup- output of all players (www.klacr.cz). institutions of tertiary education (universi- ply chains in the fi eld of strategic projects ties, colleges). Their association has the for energy industry, transport industry, and potential to strengthen and increase their construction on a global scale (www.mssk- competitiveness. ova.cz/CZ/default.aspx).

The IT Cluster focuses on preparing human resources, on joint marketing activities, and on establishing the potential for innovative projects in the field of IT (www.itcluster.cz).

The Moravian-Silesian Automotive Clus- ter, whose goal is to develop the automotive industry in the region in order to achieve permanent competitiveness of regional sup pliers for the automobile industry in the

Czech Republic and abroad and create con- archives University of Ostrava Technical VŠB – www.sxc.hu, Photo:

| 32 CZECH BUSINESS AND TRADE

Ostrava and its Neighbourhood: Location of Three Top Universities

Building of the VŠB-Technical University of Mining, Ostrava University staff participate in dozens of joint research projects with other Czech and foreign universities. Hundreds of students from this university complete study programmes at partnership universities abroad and hundreds of students come to study at the University of Ostrava from abroad. (www.osu.cz)

SILESIAN UNIVERSITY IN OPAVA The fact that research and development activities are cultivated at the Silesian Uni- versity in Opava and Karviná is testifi ed by the publication activity and scientifi c conferences, which the Silesian University in Opava organises also at international level. The Uni- versity has excellent results with international response in the fi eld of multi-agent systems and experiments and application of multi- Education is the key investment Republic, whose scientifi c and research and agent systems on robotic platforms. The into the society of the future. The development potential develops and repre- Mathematical Institute in Opava, founded on sents a signifi cant part of innovation activities 1 January 1999 and a part of the Silesian Uni- Moravia-Silesia Region is not lagging in the Moravia-Silesia Region and the Czech versity, has a signifi cant position in the fi eld of behind in paying attention to it as Republic. At the moment, VŠB-TUO with its ap- research and development. The current main it has a dense network of university prox. 22 thousand students is the fourth larg- research focus of the Mathematic Institute est university and the second largest technical with a total budget of CZK 63 million (approx. education opportunities – in both university in the Czech Republic. Research and EUR 2.5 million) is in topological and analytic public and private institutions. With development activities are carried out at seven methods in the theory of dynamical systems regard to the industrial history of faculties. The Faculty of Electrical Engineering and mathematical physics. (www.slu.cz) and Computer Science and the Faculty of the Region the university education Metallurgy and Materials Engineering provide BUSINESS SCHOOL is also aimed mainly at technical sec- the largest space for this activity. The University IN OSTRAVA, A.S. tors of education. also consists of science and technology cen- The Business School in Ostrava, a.s. (Plc) has tres: Centre for Technology Transfer, Nanotech- become the natural centre for education in nology Centre, Environmental Technologies the sector of management and business, inno- Centre, Energy Research Centre, Super Com- vation, and integration since its establishment puter Centre, Institute of Modelling and Con- in the 1990s. Specialist and creative activities The Region is home to three universities: the trol of Forming Processes. (www.vsb.cz) also hold a signifi cant place in the school’s VŠB-Technical University of Ostrava, Univer- activity. It organises conferences, seminars, sity of Ostrava, and Silesian University in Opava. UNIVERSITY OF OSTRAVA and other specialist events and it cooperates There are two other higher education institu- The University of Ostrava undertakes research on projects in the Region, the Czech Republic, tions present in the Ostrava region: Business and development at six faculties: Faculty of Arts, and Europe. (http://portal.vsp.cz) School in Ostrava and the College of Social and Pedagogical Faculty, Faculty of Science, Faculty Administrative Aff airs in Havířov. In total, there of Social Studies, Faculty of Health Studies, and COLLEGE OF SOCIAL are almost 50 000 students in the Region, which partially also at the Faculty of Fine Arts. The Uni- AND ADMINISTRATIVE AFFAIRS each year generates thousands of graduates versity also comprises two university research IN HAVÍŘOV who have ties to the Region and the necessary centres. The Institute for Research and Appli- The accreditation of the College of Social education. Last but not least, the dense univer- cation of Fuzzy Modelling is a top European and Administrative Aff airs in Havířov and the sity network represents nutritious soil for com- institution, which focuses on the development granting of government approval dated 30 panies and entrepreneurs who can choose and of special mathematical methods and their November 2007 were the crowning of the ef- develop suitable students during their studies application. The European Research Institute forts of Havířov at obtaining a high education and thus invest into the future of the company. for Social Work focuses on the development statute. The founder of this private college is of research activities in the fi eld of social work the Havířov Institute of Lifelong Education, VŠB-TECHNICAL in cooperation with six European universities. o.p.s. (public benefi t organisation). Students UNIVERSITY OF OSTRAVA There are approx. 10 thousand students at the can choose from two programmes: Public The VŠB-Technical University of Ostrava is one University of Ostrava in 350 study fi elds in Bach- Economics and Administration and Manage- of the top technical universities in the Czech elor, Master, and Doctoral study programmes. ment and Social Aff airs. (www.vsss.cz).

33 | REGION

Company of the Year: Gamin s.r.o.

Gamin s.r.o. was established in Although Gamin was founded by two a large number of interesting orders on 1994. "Last year we celebrated our engineers, most of its employees today record. Its products are tested in labora- are women. The company, whose specialis- tories of car factories such as Kia Slovakia, 15th anniversary, and so, as we are ation is the surface treatment of metals, Peugeot Citroën Trnava, Toyota Peugeot persuaded, the period of teeth- has a turnover of more than CZK 23 million Citroën Kolín, and Hyundai in Nošovice. ing troubles is over for us and now (approx. EUR 920 000). About 85% of its Gamin’s talks with Korean manufacturers turnover is accounted for by imports, and are among the firm’s greatest business a promising future lies ahead,” the company management is now work- experiences. Ms Radana Brábníková, the company’s ing hard to raise its export ratio. Together Executive Director, says. with its affi liation in Slovakia and external ENLARGEMENT workers, the company is run by 12 people. OF THE PORTFOLIO Their motto, by which they are all guided, From the outset, Gamin s.r.o. has been the is: Openness, a motivating and easy atmos- exclusive agent of the British company El- phere, and the possibility to participate in cometer Instruments Ltd, the world leader essential decision-making and the further in the area of surface fi nishing quality test- development of the company. ing. Over the years, the fi rm’s management has signifi cantly enlarged the portfolio of its APPRECIATION FOR GAMIN measuring and regulating equipment and This may be one of the reasons why last has added several more product ranges year the firm won an all-European award to its programme – corrosion chambers, for metallisation equipment from the US blasting and varnishing equipment, met- manufacturer, Thermion. “Although there allisation devices and, in response to en- is a crisis and engineering is affected quite vironmental requirements, equipment for heavily, everything goes better when the used solvent and water recycling. offer is made with grace by lady-manag- With time, the firm has spread its range ers like us,” says Radana Brábníková, with of activities to cover other countries – in a smile. 2005 it established an affiliation in Slo- vakia (GAMIN SK, s.r.o.), and in 2009 the MORE BRANCHES firm gained the all-European agency Besides the Czech market, Gamin operates from the US manufacturer Termion for on the Polish, Dutch, and Slovak markets. metallisation equipment. Recently, the “This year we opened a branch in Písek firm enlarged its sales activities, to which to be closer to our clients in the Czech it added its own servicing. Last but not Republic. Another problem and a long- least, Gamin also concerns itself with term threat, in addition to lower demand, education and training in the area of sur- in my opinion, is a lack of strongly mo- face treatment and organises courses on tivated employees living and breathing various subjects for clients. for the firm,” Brábníková says. The firm,

based in the Moravia-Silesia Region, has More at www.gamin.cz archives Gamin s.r.o. Photo:

MOST IMPORTANT IS THE BUILDING OF FAIR RELATIONSHIPS

Czech Business and Trade asked Gamin’s Executive Director Radana Brábníková for an interview. Here are the questions and replies:

What does your success in the competition for the Firm of the Year of the Moravia-Silesia Region mean to you? Naturally we have been greatly pleased with the award. At the time of the award, we were all greatly excited, but from the long-term point of view I believe that more important for our trade partners is the long-term building of fair relationships, mutual confi dence, the observance of what has been agreed. The award is rather just cream on the cake.

What are the company’s plans for the future? In the near future we’ll be working hard to promote the export of our products and broaden Radana Brábníková the range of our services, including education. One of the most essential tasks awaiting us is the Executive Director Gamin s.r.o. reconstruction of the company’s headquarters and the creation of a representative seat.

| 34 The Moravian-Silesian Region – Massive Attraction for Investments The Moravian-Silesian Region, the most populous of the Czech Republic’s 14 regions, boasts a strong engineering and heavy industry Businessmen and entrepreneurs will fi nd a large number of industrial parks in the Moravian-Silesian Region, whose occupancy ranges tradition. Recently, however, it has undergone a period of dynamic above the national average. The best-known is the Nošovice Indus- development and prosperity, with its business and industrial struc- trial Park, the location where Hyundai has situated its car factory. One ture changing beyond recognition. Mining activities have been of the Region’s competitive advantages is the Leoš Janáček Airport in severely scaled down and new companies have arrived with projects Ostrava, which links up with an industrial and public logistic zone. in the areas of Information Technologies, electronics, and electrical The Moravian-Silesian Region has a large number of brownfi elds. engineering. A number of foreign investors have taken advantage of Many of them have already been regenerated, or are in the proc- the favourable conditions off ered by the Region for business activities, ess of regeneration, but quite a number are still waiting for exploit- which applies in particular to car manufacture and its know-how. ation and new investors.

The Moravian-Silesian Region has a strong tradition of corporate research and development in the area of industry. Recently, advanced research has successfully been started here, with the aim D PL of responding to the latest sophisticated requirements of the application sphere. An example is the research of Information Techno- logies and new materials for the automotive industry. PRAHA OSTRAVA inzerceTo support the public sector and businessmen in general, the Re- gion set up an agency in Ostrava in 1993– the Agency for Regional Development, a.s. - as a pilot project of the European Union, and BRNO in 2008 the Moravian-Silesian Region became its owner. Its tasks are the creation of conditions for drawing money from EU funds, SK support of the development of business properties, brownfi eld regeneration, and human resources development. A

Mgr. Martin Radvan Department for Regional Development and Tourism Moravian-Silesian Region – Regional Offi ce 28. října 117, 702 18 Ostrava, Czech Republic Phone: 595 622 540 E-mail: [email protected] www.kr-moravskoslezsky.cz

Ing. Petra Chovanioková Agency for Regional Development Na Jízdárně 7/1245, 702 00 Ostrava Czech Republic Phone: 595 691 210 E-mail: [email protected] www.arr.cz attractive environment • prestigious presentation forms • international impact

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