Specification of research activities carried out in the Centre
Basic specification of the subject of research activities
Within the basic specification of the subject of research activity, the Centre is outlined as an
analytical establishment concentrated on the application of social and scientific knowledge in
the field of competitiveness evaluating its preconditions and results in the Czech Republic
and its economico-political implications referring to achieving the goals of Lisbon strategy.
Competitiveness is analysed and evaluated with regard to key conditions of a successful
transition to the knowledge-based economy on the basis of trends of macroeconomic
development (growth performance and stability) of the CR in international comparison
(within EU-25). Analysis and evaluation of competitiveness of the Czech economy is focused
in this context on three mutually interconnected qualitative factors of long-term sustainable
growth performance as well as the attitudes to their development. The first factor includes
institutional quality of company environment, as the principal condition of effective
functioning of company sphere and development of qualitatively based activities with a longterm
output, i.e. investing particularly in innovations and human resources, infrastructural
conditions for the development of innovations and human resources. The second factor
includes resources and results of innovation performance as the main condition of the
development of quality-based competitive advantage and qualitatively (high-tech and skills)
demanding economic activities. The third factor includes quality of human resources, which
is both the condition and the reflection of the level of innovation performance, particularly in
relation to the supply of high and specialized qualification and generally in relation to the
ability of labour to be adapted to the faster and faster moving qualification requirements. The
growth performance sustainable in the long term in the macroeconomically stable,
institutionally established framework is the condition and simultaneously the reflection of
quality-based competitiveness of domestic economy.
The qualitative factors are crucial for the growth performance sustainable in the long term
and the ability to compete. At present, however, the Czech Republic is still lagging behind
most EU member countries and has a lower growth performance as compared with other
acceding countries. Moreover in the periods of revival it is accompanied by an increasing
macroeconomic imbalance (in the form of growing deficits of the public finance and the
balance of payment current account). This state is caused not only by the extent of inadequate
resources for growing competitiveness, but also by their distribution. The change in the
distribution is blocked by inadequate institutional structure. The change will require longterm
coordinated economico-political support, whose efficiency is also greatly dependent on
the quality of objective analysis of existing state as well as development trends in individual
areas. Therefore the aim of the Centre is such an analysis, whose results will be used by a
wide spectrum of users for designing development strategies, formulation and
implementation of appropriate economico-political measures and for evaluation of success
rate of their implementation from the viewpoint of their performance and qualitative shift in
the international position of the Czech Republic.
Specific features characterising the subject of research activities
Specific features characterising the subject of research activities of Czech economy
competitiveness can be seen especially in three aspects ­ in the emphasis put on its
qualitative factors and their specific character reflecting the attained level of economic
development as well as in the application of complex methodological approaches. The stress
on qualitative factors of competitiveness is in harmony with an intensive attention paid to
these problems in the new millennium. It can be stated that in the context of accession of new
members to the EU, research establishments shift their focus from so far accented aspects of
transformation of planned economy to market economy to the issues of transformation to the
knowledge-based economy. The processes thus pose a double challenge for transition
countries aspiring to overcome the backwardness of economic level ­ economic and
technological (or in the present concept knowledge) catching up. The sources of existing
competitive advantage (especially low production costs) are gradually disappearing and the
outlook of development of qualitatively new resources are still limited as a result of
continuing economic and technological gap (or a low level and inappropriate institutional
structure of our own innovation capabilities). The possibilities and a more marked
economico-political support for changing this state are curbed by the existing fiscal
imbalance, as well as the inefficiency of the supporting system, which is due to its
incompleteness, sectored structure of regulatory organs and prevailing short-term horizon of
development strategies.
The second aspect of the new approach of the Centre is that is takes into account special
characteristics of Czech economy competitiveness related to key qualitative factors of its
development and in relation to the declared growth performance as well as to the
macroeconomic stability. The emphasis put on qualitative factors reflects the fact that the low
growth performance of Czech economy is attributed particularly to the low growth of
aggregate productivity, which is in line with low estimates of the growth in potential product.
The role of qualitative factors is considered as decisive for increasing the aggregate
productivity.
In the field of institutional quality of company environment, the problem is mainly caused by
corruption behaviour and a low quality of public administration and political process. It can
be traced especially in the fact that applied approaches have a non-systemic character,
political strategies are only short-lived and impacts of partial measures on the decisionmaking
of economic subjects are insufficiently taken into account. Therefore, corporate
environment is characterized by instability and non-transparency, which impede the
conditions for long-term investment decisions. At the same time, the low quality of corporate
environment increases the costs of economic activities for individual subjects (and economic
losses for the state) and reduces utilization efficiency of available resources. This long-term
and structurally based problem can be solved by creating the environment of trust, which
ensures that productive contacts are established between corporate, financial and research
communities and that cooperative links are created even in the environment of competitive
and innovation based markets. Innovation performance provides challenges of a low level of
own innovation capabilities and high demands put on the quality of economic activities.
Furthermore, structural and performance deformations as well as those of the national
innovation system continue to exist (particularly isolation of its key sectors). A big issue of
further development will be the ability of domestic factor endowment to offer specific assets
for the development of knowledge-intensive activities and for utilization of the technological
potential of direct foreign investment transfer. Qualitative sophistication of services and its
future potential are still absolutely unmapped, particularly in the light of falling employment
in processing industry. The most urgent aspect of human resources quality is considered
besides the growing scope of initial education at tertiary level (especially in shorter
programmes) also the adaptability to changing qualification requirements during professional
life. i.e. the development of new forms and boosting of intensity of continuing education
within life-long learning strategies. Conceptual support of talented students is vital for being
able to offer highly qualified workers and to use the research potential of university
researchers and student and also to establish and develop intensive links between the higher
education sector and the corporate sphere in the framework of national innovation system
and regional infrastructure supporting innovations.
In relation to economic and political support of competitiveness development, the third
generation policies is gaining importance. They are based on a comprehensive approach that
overcomes the traditional resort concepts. Furthermore, it is necessary to generate new
incentive mechanisms, which are primarily based on indirect tools stimulating an active
approach in the economic subjects themselves (instead of their passive role in the system of
directs governmental support). The stress is rightly put on making provision for the attained
economic level as well as the level of institutional environment in conceiving and
implementation of supporting measures. Absence of this must lead to a low efficiency of
implemented measures and ineffective spending of public resources.
The third aspect of centre's research activity involves creation of application of complex
methodological approaches to the analysis and evaluation of competitiveness, which relate
to theoretical basis (in the field of microeconomic or regional competitiveness) and foreign
applications in the form of international surveys. However the surveys must be modified and
developed to take into account specific features of Czech economy in the integrated European
economic space. Context analysis represents the conceptual framework of research. Using the
secondary data it comprehensively rates the position and development trends in the Czech
Republic in the monitored qualitative factors within EU-25 (benchmarking). Context analysis
identifies strengths and weaknesses of our position in relation to construction of monitored
indicators while critically assessing their informative value. Analysis and evaluation of
competitiveness significantly relies on primary data acquired from representative and
periodically repeated corporate surveys at national, branch and regional level. Their results
are interpreted using the results of context analysis and discussion in focus discussion
groups.
Implications drawn from the analysis are formulated for the related research as well as the
recommendations for appropriate areas of economic policy with emphasis on attaining the set
goals. The facts from contextual analysis in combination with evaluation of company surveys
so forms a unique interconnection starting from theoretical basis to concrete applications,
from international and national level to microeconomic level. The interconnection represents
a principal precondition for reaching a qualitatively higher level of research activity and
benefits of their results at theoretical , methodological and application level.
Specification of the research goals of the Centre
Goals, output and their applications
The aim of the centre's research is a comprehensive analysis of the sources and results of
competitiveness of the Czech Republic, and an identification of corresponding policy
economic implications for the support of successful transition to knowledge-based economy.
The analysis is structured in four components covering the key (and mutually intertwined)
aspects of the subject: (1) The component of growth performance and stability analyzes the
economic growth in CR in an international context, differentiating between the supply and
demand factors, including their impact on macroeconomic balance. The analysis of
convergence, as compared to other EU members, will explain the observed differences and
the causes of the Czech economy falling behind. (2) The component of institutional quality
assesses the quality of governance and business environment in terms of comprehensive
cluster indicators and results of international company surveys, and identifies their relation
(and that of other qualitative indicators) to the company performance. (3) The component of
innovation performance focuses on the evaluation of the qualitative level of economic
activities (in terms of exploitation of the own innovation capabilities, or the dependence on
external sources of technology knowledge), and on the identification of their inter-industry
differences related to the performance characteristics. (4) The component of human resource
quality evaluates the level and structure of supply and demand for skills, and preconditions
for their improvement, which reflect the characteristics of education and training
opportunities and their exploitation in life-long learning, as the precondition of adaptability to
changing skill requirements of economic activities. In all the components, the stress is
particularly being put on the generation and application of adequate analytical approaches
(related back to theoretical starting points), which enable the evaluation of the Czech
Republic position in a broader international comparison (within the enlarged EU), and
explanation of the causes of the present state and development trends in the indicated growth
and qualitative characteristics.
Meeting the research goals over the horizon of five years (with the perspective of
continuous development of centre`s research activities) reflexes complexity and
simultaneously analytical depth of selected approaches. A longer period of time will enable
to exploit basic analytical sources that are published over longer intervals (particularly the
results of international surveys and comparative projects), and implementation and
assessment of own company or expert surveys. Partial outputs are specified for every year
(in the form of evaluated and published reports) and over the five year horizon the final
output will be produced (in the form of a complex report on competitiveness of the Czech
economy). In terms of the type of research activities are in the case of context analysis
identified the implications of so far unrealized research activities of the research team and
the results of available international and national surveys for proposed analytical approaches,
especially the information value of their results and the need to specify the content orientation
in more detail. The context analysis will be published annually with a gradually more precise
methodology. Five stages of company surveys are distinguished over the horizon of five
years. Their outputs will be partly incorporated into the context analysis, partly presented
separately. Company survey will be realized starting from outlining their methodology, a
pilot survey, a representative survey, evaluation of its results at national and inter-industry
level and methodology of survey at regional level and finally it will be carried out and the
results will be evaluated. Economico-political implications will be formulated based on the
results of context analysis and company surveys. They will be related to a sustainable growth
competitiveness in individual monitored areas.
The final output will be represented by the methodology of analyzing and evaluating
competitiveness of Czech economy and its application in the form of a comprehensive report,
which will include four parts. An updated context analysis of Czech Republic's position in a
broader international comparison, cross-sectional results of company surveys at national
level, their specification according to partial qualitative factors and industry level and
according to regional viewpoint (with a broader scope of surveyed subjects). The resulting
methodology and the results of its application after five years will enable periodical
repetition of individual rounds of research in the next period of the centre's existence and
thus the evaluation of development trends of monitored qualitative factors and the reflection
of identified strengths and weaknesses in the concept and practice of related areas of
economic policy. Over a longer time horizon we plan that the comprehensive report will be
published with a three year period. An updated context analysis will be published annually.
In the first year, it will be complemented by the analysis and evaluation of overall results of
the company survey, in the second year with their specification according to partial
qualitative factors and industry level and in the third year with a regional aspect (a higher
number of included regions will depend on available resources provided by regional users).
From the viewpoint of application the centre's outputs, the comprehensive report on Czech
economy competitiveness is considered to be a flagship of the centre's research activities. It
will be important with regard to both external presentation of its results (for institutional users
and a wider general public), and with regard to organization and strategy of its solution and
conceptual character of doing the research proper (including a tight interconnection of inputs
of individual subjects participating in the centre's activities). Research activities leading to
implementing this type of output will be interlinked by methodological expertise (based on
theoretical bases of the monitored concepts) and by analytical expertise using qualified
systemization of available secondary data (benchmarking) and evaluation of primary data
acquired by own surveys.
This combination enables to create the output that represents a unique information source for
a wide pro spectrum of subjects (at both national and regional level) ­ for the public sector
(administration or local authorities) when strategic and implementation documents are
prepared to meet the goals of the Lisbon strategy and implemented measures are evaluated.
The private sector will use it in the area of business consultancy especially when evaluating
the investment climate and development and information agencies or professional unions and
associations will use it to identify a desirable bearing of backing and development
programmes. Educational institutions of initial and continuing education will be able to
identify perspective segments offering educational opportunities and desirable forms of their
realization. Last but not least the report results are designed for businesses to identify own
position according to competitiveness and approaches to its increase in the domestic business
sector. These types of users are completely represented at regional level, where the reporťs
results can be used to formulate and implement regional development programmes.
A continuous interaction between the research and users of its outputs is represented by
focus groups expert surveys to interpret analytical results and formulate economico-political
implications and recommendation. An interaction with institutional users will be enhanced
by participation of their representatives in focus group in key stages of centre's research
activities. The interaction will become an integral part of the research and at the same time
will provide the participants with the platform, on which they can confront the information
from their own practice. Thus, the users will be able to immediately influence the scope of
investigated aspects of competitiveness. The spectrum of users will be systematically
enhanced according to the outputs of individual stages of solution and according to the
content diversification of topics in individual focus groups. At the same time the offer to
implement partial analyses will be enhanced according to the recipients needs. The broader
public will be informed by regularly released reports on competitiveness of Czech economy
and from related partial outputs focused on specific areas of investigated issues in the form
of working papers of the research centre, specialized seminars and workshops organized by
the centre as well as in the form of external individual publication and conference activities.
Special web pages will be designed to present centre's activities and their results. The pages
will also contain a regularly updated database of references to point to information sources
and home and foreign activities in the research of the centre. International conferences will
be organized in the third and fifth year of the projecťs existence. They will be attended by
representatives of collaborating foreign research institutions, institutional users and
professional public. The conference will review the results of research activities of the centre
and discuss their implications for analytical work and economic policy in the monitored
areas.
Foreign activities
In attaining its research goals, the Centre is supposed to collaborate with foreign institutions
with similar orientation, namely: in the field of growth and stability ­ WIIW (Wiener Institut
für Internationale Wirtschaftsvergleiche), Vienna; IER (Institute of Economic Research),
Ljubljana; UNECE (United Nations Economic Commission for Europe), Geneva; ICEG EC
(International Center for Economic Growth European Center), Budapest; CES (Center for
Economic Studies), Ludwig-Maximilians-University, Munich; in the field of governance ­
IRES (Department of International Relations and Political Studies), Central European
University, Budapest; EBRD (European Bank for Reconstruction and Development),
London; TI (Transparency International), Berlin; FH (Freedom House), Budapest; INEKO
(Institute for Social and Economic Reform), Bratislava; in the field of innovation
performance SSEES (School of Slavonic and East European Studies), Center for the Study of
Social and Economic Change in Europe, University College London; SPRU (Science and
Technology Policy Research), University of Sussex; CASE (Center for Social and Economic
Research Foundation), Warsaw; OECD ­ Directorate for Science, Technology and Industry,
Paris; TIGER (Transformation, Integration, Globalization Economic Research), Warsaw; in
the field of human resources quality - OREF Burgundy (Observatoire régional de lémploi
et de la formation), Dijon; ROA (Research Centre for Education and the Labour Market),
Maastricht University; ESRI (Economic and Social Research Institute), Dublin; ILO
(International Labour Office), Geneva; National Institute for Adult Education, Budapest;
University of Twente, Faculty of Behavioural Sciences, Department of Educational
Organization and Management, Enschede.