1. Regions for economic change Innovating through EU Regional Policy Brussels, 12 – 13 June 2006 Experience with the Cluster programme in the Czech Republic - best practice and future prospects Luboš Lukasík Director Company Competitiveness Division CzechInvest

2. Investment and business development agency Ministry of Industry and Trade CR Chicago Silicon Valley Brussels London Prague Yokohama Hong Kong Paris Cologne Domestic Marketing Company Competitiveness Division Depts Internal Services Division Company Competitiveness Division Regional Co-operation Division Investment and Applied Research Division Management of Development Competitiveness Munich Support of Development Business Environment Development

3. CzechInvests Mission To support foreign direct investment To develop local companies To improve the business environment Operational Programme Industry and Enterprise (ERDF 2004 - 2006) Related programmes:-- Prosperity -- Real Estate -- Training Centres -- Clusters

4. Training regional authorities, universities and firms Active collaboration with facilitators Promotion of the concept at different levels (conferences, PR) Adapt programme to company needs (eligible costs) Study on legal forms of the cluster and organizational and communication structure International co-operation National Cluster Strategy – adopted by the Government 06/2005 National Cluster Study - the 1 st part completed Establishment and development of clusters Certification of cluster facilitators and managers 2004 2006 Completed In process Building clusters in the Czech Republic

5. Cluster support programme Mapping (1 st phase) - Subsidy for facilitators - Organised by regions or universities and supported by companies - 75 % of eligible costs, max. 35,000 - Eligible costs: All necessary costs for mapping Cluster management (2 nd phase) - max. 1.6 million with decreasing tendency: - 1 st year 75 % => 2 nd year 65 % => 3 rd year 55 % of eligible costs - Eligible costs: All necessary related to cluster management - Mutual projects supported via other programmes, not only Operational Programme Industry and Enterprise

6. Musical instruments Wood processing Tableware Engineering Bioplastics Mechatronics Bridge construction tech. Automotive Renewable energy tech. Engineering Technical textiles Glass Imitation jewellery Water treatment tech. Welding Renewable energy tech. Eco-labelling Waste treatment tech.Brewing ConstructionWood processing Packaging tech. Stone processing Polygraphic Pharmaceuticals- medical tech. Information tech. Wood processing Engineering Technical plastics Electronics Tool production Brewing Nanotechnology Renewable energy technology Automotive Nanotechnology ICT Optics Plastics Shoemaking Furniture Wood processing Information tech. Renewable energy Chemical industry (hydrogen) Automotive Engineering Construction Aircraft Biotechnology Wine-making Bioinformatics Furniture Microelectronics Textiles Established clustersProjects underway Initial activities June 2006: 28 projects underway, 1 project in 2 nd phase; approved allocation 2.35 million Map of clusters in the Czech Republic

7. Best practice: OMNIPACK I The OMNIPACK Cluster in the Hradec Králové region -- Support and development of packaging industry -- Promotion of the region as a packaging centre of excellence -- 22 founding firms + 4 universities -- Cluster members production: 44 % plastic, 21 % paper, 21 % wooden, 14 % metal packaging

8. -- Duration of project: March 2006 - July 2008 -- 88 projects in 8 fields of activity through 4 service centres -- Financing (subsidy + self-financing): Best practice: OMNIPACK II ELIGIBLE COSTS 2.25 million TOTAL PROJECT COSTS 2.6 million NON-ELIGIBLE COSTS (VAT) 0.35 million UNSUBSIDISED COSTS 0.65 million SUBSIDISED COSTS 1.6 million -- LUMP SUM FEE (operational costs) -- OPERATIONAL FEE (internal project costs) -- PROJECT FEE (external project costs) -- SERVICE CENTRES FEE (infrastructure services costs)

9. Common projects: -- Innovation, development, research (testing and development centre, innovation system management) -- Information technology development (information system, marketing and business portal, central purchasing system) -- Human resource development (knowledge management system, e-learning, training) -- Waste recycling system (perpetum system) -- Marketing, export support, consultancy, etc. Best practice: OMNIPACK III

10. Operational Programmes: -- Enterprise and Innovations (support for new firms, company growth, innovations, efficient energy, co-operation, development of HR, infrastructure, services, new trends…) -- Research and Development for Innovations (R&D capacity building, private public co- operation for innovative R&D, strengthening educational capacities in universities…) -- Education for Competitiveness (modern- isation of basic education, modernisation of higher education and R&D…) Innovations & SF 2007-13

11. CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic © Copyright, CzechInvest 2006. All rights reserved Thank you for your attention! lubos.lukasik@czechinvest.org www.czechinvest.org