The willingness of Czech companies to invest in R&D is great; however, it is hindered by the unclear interpretation of grant and subsidy rules

The three major factors influencing a company’s decision to increase investment in R&D activities include the availability of qualified and experienced workers (66 %), the possibility to use various types of subsidies, ie a combination of grants, investment incentives, tax relief and other financial tools (58 %), and the transparency of the regulatory environment (54 %).

DO NOT MISS …
We are organising our traditional seminar R&D Support in the Czech Republic, which will be held in Prague on 23 January 2019. The topics will include R&D tax relief, planned amendment to legal regulations in the area, calls for proposals or examples realised in practice. You can register using the link here.

What has been going on in the area of state subsidies for R&D activities in the past few years?  See the list of the most important conclusions from the R&D Tax Support and Subsidies analysis prepared by Deloitte:

• Conditions for providing direct public support are becoming increasingly more stringent, namely in terms of using R&D results, realising tender procedures or meeting formal requirements.
• Companies perceive negatively the increasing number of inspections and the large number of disputed tax deductions during the inspections.
• Lately, there have been cases of subsidy programmes being incorrectly set up by the grant provider or cases of subsidies with ambiguous grant rules where previously granted subsidies had to be returned.
• Although the total volume of R&D subsidies in the Czech Republic is increasing, the intensity of R&D support for companies is significantly decreasing. Most subsidies go to universities and the Czech Academy of Sciences.

However, companies are aware of the fact that new technologies and innovations are of key importance for the successful development of a company, and thus, they invest in R&D more frequently despite all these obstacles. Almost one fifth of the companies stated that in 2017, they invested more than 10% of their revenues in R&D activities. Only 2% of them did not invest in R&D in the given period.

How willing are companies to invest in R&D? Are they well informed about the possibilities of public financial aid? How is the Czech Republic doing from the perspective of the EU? Have a look at the survey carried out by Deloitte in cooperation with the Technology Agency of the Czech Republic addressing 109 respondents from a number of Czech companies. Download the full version of the R&D Tax Support and Subsidies survey.