This paper explores strategies for strengthening the competitiveness of the Czech Republic within the European Union (EU), focusing on structural reforms, innovation, digitalization, and sustainable transition. It argues that the Czech economy should evolve from an efficiency-driven to an innovation-driven model to align with EU strategic objectives. The analysis also highlights the importance of European partnerships as a vehicle for technological diffusion and institutional learning. Drawing on EU and OECD frameworks, the paper proposes a multi-level policy approach to foster sustainable economic growth and resilience within the European single market.

Key takeaways:

• The Czech Republic must shift from an efficiency-driven to an innovation-driven economy. Strengthening R&D, digital transformation, and technological capacity is essential for long-term competitiveness amid geopolitical tensions and rapid technological change.
• The green transition requires a realistic social approach. Energy reforms must account for their impact on households and regions; otherwise, they risk undermining social cohesion and public support for climate policies.
• European partnerships—especially with the Netherlands—can accelerate innovation. Deepening cooperation in high-tech sectors, research, and digitalization will enhance knowledge transfer and reinforce the Czech Republic’s role within EU value chains.

Policy Paper – Karel Sál

The analysis is in PDF under the link below.