Investment

This report assesses the potential for linkages between foreign direct investment (FDI) and small and medium-sized enterprises (SMEs) in Czechia, and provides policy recommendations to foster productivity and innovation spillovers to the local economy. The report examines the quality of investment that the country attracts, the productive and innovative capacities of Czech SMEs, and a broad range of economic, business and policy conditions that can strengthen knowledge and technology diffusion from foreign multinationals to domestic enterprises. It also assesses Czechia’s institutional environment and policy mix across the areas of international investment, SMEs and entrepreneurship, innovation and regional development, noting areas for policy reform. The report includes a regional focus on the potential for FDI and SME linkages and spillovers in South Moravia and Usti.

The Czech Republic has made progress in decoupling economic growth from freshwater abstractions, energy consumption, GHG and other air pollutants emissions. However, its strong industrial base and reliance on coal place the country among the most energy- and carbon-intensive in the OECD and air pollution is a serious health concern. Progressing towards sustainable development will require strengthening political commitment to a low-carbon economy and implementing more cost-effective environmental policies.This is the third Environmental Performance Review of the Czech Republic. It evaluates progress towards sustainable development and green growth, with special features on waste, materials management and circular economy and sustainable urban development.