Business & Innovation
Prague is politically, economically, and culturally the most important city in the Czech Republic. The capital city is among the most economically developed regions in the EU - scoring the 3rd highest in GDP per capita in 2019 - and has a high potential for further economic growth (Eurostat 2021). Prague is also among the EU regions with the highest proportion of high-growth enterprises.
At the centre of one of the world’s biggest markets
Prague is very easily accessible from many other places in the world and is within a two-hour flight of most European cities. There are many daily direct flights connecting Prague to the main European business centres, such as London, Amsterdam and Frankfurt, as well as global centres including New York, Toronto, Tel Aviv, Dubai, Seoul and Beijing. The European Union being one of the largest markets in the world uniquely presents Prague as a top choice for investors who want to conveniently access the European market or further deepen their business in Europe.
Strong innovation potential, R&D and a skilled workforce
The Czech Republic has strong potential in the area of R&D. The main areas of technological specialisation in the Czech Republic include, but are not limited to, construction and construction technologies, materials engineering, transport technologies, biotechnology, environmental technologies, energy and security. Prague is among the EU regions with the largest share of researchers in total employment (over 2%). “The advanced local R&D infrastructure has a strong, positive impact on Prague’s economic development, as the city is home to nine public universities and the Academy of Sciences, which contribute to the generation of new ideas and innovations of products and services.
Open business environment
Prague has an open business environment and a well-developed private sector. The Czech Republic’s legal environment forms a good foundation for effective company management, flexible employment and nimble property management. fDi Intelligence ranks Prague as the second-best small European region of the future in terms of business friendliness. The tax environment in the Czech Republic is stable and offers very good conditions not only for corporations but also for expatriates.
Cost-effectiveness
Although Prague has a well-developed private sector, prices are still significantly lower than in Western Europe. Investors can thus use the most necessary resources for very reasonable prices. According to fDi Intelligence, Prague ranks seventh among major European cities in terms of cost-effectiveness. With respect to office rents, the price level is the same as or lower than the average rate in nearby locations in Central Europe. Compared to other major cities in Europe such as London, Munich, Vienna, Amsterdam and Paris, the rental rate in Prague is 10% to 80% lower. The Czech Republic is also very affordable in terms of labour costs, as the average wage here is about half of the EU average. However, the quality and availability of workers are satisfactory according to fDi Intelligence, which has ranked Prague fourth among major European cities in the category Human capital & lifestyle.
