Czechia

The 2016 MoD budget, higher by CZK 4 billion when compared to a year before (2015), reached the CZK 47.78 billion (see chart below), which after the subtraction of the total MoD revenues (insurance & tax revenues & non-tax revenues, capital revenues and transfers received), accounted for CZK 42.65 billion. The already approved budget for 2017, reflects a further increase to CZK 52.54 billion, while forecasts for 2018 raise this figure to CZK 57.24 billion.

Having a long aviation tradition, the Czech Republic has managed to establish a strong presence in the aerospace sector, empowered by the high skills and expertise of its 10,000 employees, producing high quality, reliable and innovative products. According to the Financial Times, in 2015, the Czech Republic was ranked at the 4th place among the specialised Aerospace nations (following only the US, the UK and Germany), while Aerospace is at the forefront of the Czech Republic’s priorities in terms of investments (along with ICT, Automotive and Electrical Engineering/Electronics sectors).

Today, the Czech Aerospace industry’s contribution is very significant in terms of technology innovation, research and development programs, and its activities include anything from basic production, up to final assembly of entire aircraft. The majority of Czech companies and institutions collaborate with the top industry players on various levels, through their participation in multinational joint programs. Their capabilities encompass practically all aspects, from MRO (Maintenance, Repair, Overhaul), to General Aviation, Jet Trainer, Light and Sport Aviation (LSA) aircraft manufacturing, to satellite systems and components production –including part of the Galileo navigation system (see Infographic below).

It is worth stressing that the Czech Republic is considered one of the largest LSA manufacturers worldwide, as well as the fact that the European GNSS Agency is located in Prague. Further, international companies, such as Honeywell, Latecoere, Textron, GE Aviation and Zodiac Aerospace, operate in the country.

In addition, the L-39 jet trainer (one of the most popular jet trainers worldwide), as well as products for Boeing, Airbus, Embraer and Dassault, are manufactured in Czech facilities.

The last decade (2005-2015), the Czech Republic exported about US $419 million of arms equipment. According to the SIPRI database, the major recipients were Georgia, Iraq, Afghanistan, Vietnam, the US and Russia.

The exported equipment consisted mainly of Aircraft, Armoured vehicles and Sensors.

Nowadays, the Czech Defence industry is one of the most dynamic and advanced in central Europe. Major Czech defence companies, which supply the Armed Forces of the Czech Republic and other countries, include Aero Vodochody, EGO Zlín, Explosia A.S., LOM Praha s.p. and Omnipol a.s. (see Infographic above).

In a categorised by product type view, some indicative companies operating in the Czech Republic include:

Type of Products

Companies

AIRCRAFT, AVIATION EQUIPMENT

BELL HELICOPTER, ELDIS PARDUBICE, INNA, LETECKÉ PŘÍSTROJE PRAHA, PBS VELKÁ BÍTEŠ, VR GROUP

COMMAND AND CONTROL SYSTEMS OF COMMUNICATION

ERA, EVPÚ DEFENCE, LETECKÉ PŘÍSTROJE PRAHA, PRAMACOM PRAGUE, QUITTNER & SCHIMEK, RAYSERVICE, RETIA, SAAB TECHNOLOGIES, T-CZ, TESLA, TESLA V.T. MIKROEL, VOP GROUP, VOP CZ

COMMUNICATION, RADIOLOCATION, INFORMATION AND NAVIGATION SYSTEMS

AURA, ELDIS PARDUBICE, ERA, INNA, INTV, MESIT HOLDING, PRAMACOM PRAGUE, RETIA, ROHDE & SCHWARZ - PRAHA, SAAB TECHNOLOGIES, T-CZ, VOP CZ

TANKS, ARMOURED VEHICLES, TRUCKS

TATRA TRUCKS, VOP CZ

WEAPONS, AMMUNITION AND EXPLOSIVES

ČESKÁ ZBROJOVKA, EXPLOSIA, POLIČSKÉ STROJÍRNY, PROTOTYPA-ZM, SELLIER & BELLOT, ZEVETA AMMUNITION

ENGINEERING, CHEMICAL AND HEALTH EQUIPMENT, INFRASTRUCTURE

AVEC CHEM, B.O.I.S. - FILTRY, EGO ZLÍN, EXPLOSIA, POLIČSKÉ STROJÍRNY, S.P.M. LIBEREC, ZEVETA AMMUNITION

IRS, SECURITY TECHNOLOGIES

EVPÚ DEFENCE, LEDIC, MAX MERLIN, PRAMACOM-HT, PRAMACOM PRAGUE, S.P.M. LIBEREC 

Up to date, public-private sector cooperation, has been a key element in R&D activities in the Czech Republic. As a result, the Czech Republic is home to world class institutions, and hosts significant international A&D companies and their laboratories – e.g. Honeywell’s first R&D centre outside the US, the European focal point for the Honeywell User Experience and Human factor research.

According to the 2016 MoD Budget, only 0.9% (equal to CZK 430.8 million) was to be allocated for Defence Research, Development & Innovation. This amount was increased by 1.8%, when compared to a year before (2015 budget), and it was to be directed towards applied research and experimental development, for the enhancement of armed forces capabilities, as well as for the institutional support of research organisations and the participation in international projects under EDA.