The current Czech system of financing research, development, and innovation is reaching its limits and is not prepared to face the challenges of the coming years. According to a new Policy Brief by the Technology Center Prague, which is based on the outcomes of the SCI-PO 2025 conference, minor adjustments to existing tools are not enough. In order for the Czech Republic to compete globally in technology and maintain its innovation potential, a structural transformation of the entire system is necessary.
Several factors are driving this fundamental change. Public finances are coming under pressure as a result of growing demands for funding for the social system, healthcare, and external and internal security. After 2027, a reduction in the volume of European funds is also expected, which in recent years have accounted for up to ten percent of total expenditure on science and research in Czechia. These funds, used primarily for large infrastructure projects, will need to be gradually replaced by increased national funding and greater involvement of private capital. The Czech system is also fragmented, spread across dozens of providers and organizations, and often funds institutions that have long failed to reach the necessary level. The result is low efficiency, poor coordination, and dependence on external sources.
Four key areas for a long-term stable, open, and effective innovation system
The Policy Brief therefore proposes a new framework based on four pillars. The first is the creation of a common vision and effective strategic management to ensure a stable and predictable long-term environment for investment. The second is the optimization and concentration of resources, i.e., a shift away from blanket distribution of funds toward excellent institutions and clearly defined national priorities. The third pillar is the diversification of financing and mobilization of private capital through repayable and hybrid instruments, venture capital, or the active role of the state as the first customer. The fourth pillar is deeper integration into the European framework, in particular more active participation in Horizon Europe programs and preparation for changes to the EU’s multiannual financial framework after 2027.
„The time has come to change the way we approach science and innovation funding. It is not enough just to distribute money; we must build a system that is effective, open, and capable of mobilizing private resources. If we miss this opportunity, we risk losing talent, underutilized infrastructure, and competitiveness,“ says Petra Solská from the Departments of Strategic Studies of the Technology Center Prague.
Emphasis on the National Innovation Strategy
The document also emphasizes the need for a new institutional framework that would establish clear competencies and enable systematic management. It recommends approving a national innovation vision as an interdepartmental strategy, focusing on three to five technological priorities with global reach, and creating an environment that rewards results and tolerates controlled risk. The system should be more open to top talent from abroad and motivate young scientists to return. At the same time, it is necessary to significantly strengthen knowledge transfer and the commercialization of results so that Czech research is more reflected in practical innovations and new business opportunities.
The authors warn that if the system does not change, the investment gap will widen with the decline of European resources, maintaining a fragmented system will become more expensive, and talent will leave for abroad. On the contrary, timely and well-thought-out transformation can create an environment that will ensure stable funding, strengthen the confidence of companies and researchers, and bring the Czech Republic an international reputation in the field of cutting-edge science and innovation.
Policy Brief Sustainable Funding after 2027 (Czech only)
