Business News
Investment in R&D increases after tax change
Czech firms have greatly increased their investment in research and
development in the last two years, Hospodarske noviny reported this week.
This follows a change in the law initiated two years ago by then deputy
prime minister Martin Jahn, under which companies can deduct tax on
expenses incurred in R and D. Spending on research and development in 2006
was almost one quarter higher than the previous year.
FDI inflow falls by half
The amount of foreign direct investment flowing into the Czech Republic
fell by almost 50 percent last year, according to the World Investment
Report by the UN Conference on Trade and Development. Whereas USD 11.7
billion in FDI flowed into the country in 2005, in 2006 that figure had
fallen to 5.96 billion. Two years ago the Czech Republic was in the world
top 20 in terms of FDI - last year it placed near 40th. The Czech Industry
and Trade Ministry put the decline down to the fact that figures for 2005
were swelled by the privatisation of Cesky Telecom.
MPs pushing for new change in policy on nuclear power
A cross-party group of deputies is pushing for a rethink of the
government's policy of discounting the idea of building more nuclear power
stations. MPs from the largest party in the coalition the Civic Democrats
and the opposition Social Democrats have joined forces to fight the
no-new-nukes policy of the Greens, the smallest party in government. The
informal group is calling for the construction of two more nuclear stations
to go with the two already in existence, Temelin and Dukovany.
Hundreds of new firms expected in growing field of IT
Investment in information technology in the Czech Republic this year is
set to reach CZK 93 billion (almost USD 5 billion), suggests a study by IDC
quoted by Hospodarske noviny. It predicts that a whopping 700 new IT
companies will be set up in this country in the next four years. Currently
the sector employs over 150,000 people and the new companies will create
another 50,000 jobs. However, employers complain the Czech education system
does not produce enough skilled graduates in this field and they will have
trouble finding suitable staff.
Skoda planning to launch new version of Superb...
Skoda Auto is redesigning its Superb model, according to recent press
reports. The new design will be launched at the 2008 Geneva Motor Show and
is set to go into production in the second half of next year. Skoda is also
planning an estate version of the Superb. Both versions will be produced at
the carmaker's newly expanded plant in Kvasiny, east Bohemia. Production of
Skoda Auto's sports utility vehicle the Yeti will begin in 2009.
...while company continues to dominate Czech car market
Meanwhile, figures just out show that Skoda's Fabia is the top-selling passenger car in the Czech Republic. Almost 20,000 Fabias were sold in the period from January to the end of September. Second most popular was Skoda's Octavia, followed by the same company's Roomster.
