The document discusses competitiveness in Central and Eastern European countries using the Czech Republic as a case study. It provides an overview of the Czech Republic's macroeconomic indicators and industrial tradition. It also describes the government's efforts to improve competitiveness through various programs that support research and development, business cooperation, workforce development, and energy efficiency. The goal is to transition the Czech economy from low-cost to quality production through innovation.

1. Competitiveness of the transition countries of Central and Eastern Europe: Case of the Czech Republic Martin Turnovský Ministry of Industry and Trade of the Czech Republic www.mpo.cz

2. The Czech Republic is member of EU (since May 1, 2004) European Union EU Member States Candidate countries Non-member countries

4. Comparison GDP in Transformation Countries in Central and Eastern Europe in 2004 HDP per capita in USD Source: Vitam International

5. External trade balance (in bil. CZK)

6. 1993 - 31. 3. 2006

7. 1993 – 31. 3. 2006

8. Industrial tradition

9. C EE C ountr ies Ratings - 200 6 Source: Czech National Bank , February 2006 BBB B aa2 BBB Russia B BB- B a1 B BB- Romania A A2 A Slovakia A A 1 A Estonia BBB+ A2 BBB+ Poland BBB+ A 1 A- Hungary A A 1 A- Czech Republic A A - A a 3 A A - Slovenia FITCH-IBCA Moody ’s Standard and Poor ´ s Country

10. Level and dynamics of labour costs

17. Operational areas R&D and Innovation Business infrastructure Human resources Energy savings COMPETITIVENESS

18. Agreement with Hyundai officially signed