Development of entrepreneurship in Prague

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Development of entrepreneurship in Prague

• LNet conference
• London
• 25th November 2004

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Agenda

• Strategic Plan of Prague
• Entrepreneurially deprived areas in Prague
• Business support priorities
• Programs regarding development of
  entrepreneurship
• Structural funds for Objective 2 and 3

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Prague

• Area 496 sq.km
• Population 1.2 mil inhabitants
• Unemployment lt 4
• Investment rating A-
• Region has attracted 20 of foreign investments
  in CR
• Almost 25 of Czech GDP
• Highest GDP per capita in new member state regions

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Strategic plan of the Capital Prague - Strategic
vision

• The role of Prague and the citys economy
• The quality of life
• The quality of the environment
• Transport and technical infrastructure
• City management and administration

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Strategic plan of the Capital Prague - Priorities

• Integration of Prague into the European
  structures
• Prague - the centre of innovation as well as
  well-qualified workforce
• Support for the housing market and ensuring its
  availability
• Reliable, functioning public transport system
  that is kind to the environment
• Economic and sustainable management of energy,
  water and other resources supply
• Bringing city authorities and administration up
  to standards
• Transition from a monocentric to a polycentric
  city structure

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Spatial development from monocentric to
polycentric structure

• overburdened parts of the city
• cultural heritage and tourists
• vicinity with good transport infrastructure
• brownfields
• improving the quality of life
• large housing estates without job opportunities
• additional requirements on public transport

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Spatial development from monocentric to
polycentric structure (2)

• A more balanced use of town space
• creation of districts that have full rights
• support to SMEs - creation of more job
  opportunities on large housing estates
• brownfields revitalisation
• active approach to potential investors
• new entertainment and shopping centres
• new housing estates
• office buildings and large-scale business
  facilities

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Prague the centre of innovation as well as
well-qualified workforce

• Great RD potential
• 60 of institutes of Academy of Sciences
• 44 of all Czech universities
• 76 of government expenditures on RD
• 55 of government expenditures on higher
  education
• RD and higher education covering all principal
  directions
• Low RD - business co-operation

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Prague the centre of innovation as well as
well-qualified workforce (2)

• Prague the enterprising and innovative centre for
  the whole country
• good business address
• labour market
• from manufacturing to services and new
  technologies
• partnership - integration of scientific-technical
  capacities, centres of innovation and consultancy
  for SMEs
• educational development program

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Barriers to SME development

• Entrepreneurial framework
• bureaucracy and corruption
• enforceability of law
• taxation and investment framework
• Lack of capital
• improving bank activity
• small number of venture capital investments
• limited state support system

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Barriers to SME development (2)

• Low RD activity
• Insufficient support infrastructure
• particularly for innovation /business incubators,
  Science and Technology Parks/
• quality of counselling services
• Human resources development
• managerial skills
• Lack of competencies at regional level

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Programs for development of entrepreneurship

• Single programming document for Objective 2
• 31 of total population
• Single programming document for Objective 3

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SPD2 / 1. Revitalisation and development of city
environment

• 1.1 Transport systems supporting the
  transformation of the city environment
• 1.2 Regeneration of damaged and unsuitably used
  areas
• regeneration of large sites for potential new
  city centres
• 1.3 Public infrastructure improving the quality
  of life mainly in housing estates
• projects expanding the offer of the job
  opportunities, services and public facilities

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SPD2 / 2. Building up the future prosperity of
selected area

• 2.1 Improving the quality of partnership between
  the public and private sectors, non-profit
  sector, science and research
• innovation centres, clustering, science parks,
  business incubators, strengthening RD - SME
  co-operation and technology transfer
• 2.2 Support for SMEs, a favourable business
  environment
• soft grants and investment schemes, production
  and service facilities, information centres for
  SMEs

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SPD2 / 2. Building up the future prosperity of
selected area (2)

• 2.3 Development of strategic services in support
  of the information society in Prague
• ICT and internet networks, projects supporting
  ICT in SMEs, teleworking, e-commerce development

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SPD 3

• Active employment policy
• Develop the active employment policy and enhance
  its targeting
• Social integration and Equal Opportunities
• Lifelong Learning
• Develop initial education
• Develop further education and training

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SPD 3 (2)

• Adaptability and entrepreneurship
• Improve adaptability of employers and employees
  to the changing economic and technological
  environment and thus enhance their
  competitiveness
• Co-operation of RD institutions with business
  sphere, innovation support
• Development of tourism

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Thanks for your attention

• Radoslav Fedorek
• fedorek_at_tc.cas.cz
• Technology Centre AS CR, Prague
• www.tc.cz