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Title page 1

Contents 6

Foreword 4

Acknowledgements 5

Executive summary 9

1. The business environment 12

Business environment conditions 13

Business environment policies: Mid-term evaluation of the national SME Strategy 17

Conclusion and recommendations 23

References 24

Notes 25

2. SME financing 28

SME financing conditions 30

SME financing policies: Mid-term evaluation of the national SME Strategy 32

Conclusions and policy recommendations 40

References 41

Notes 41

3. SME internationalisation 43

SME access to international markets 45

SME internationalisation policies: Mid-term evaluation of the national SME Strategy 48

Conclusions and policy recommendations 54

References 55

Notes 55

4. SME skills development and entrepreneurship skills 57

Workforce skills and education in Czechia 59

SME and entrepreneurship skills policies: Mid-term evaluation of the national SME strategy 61

Conclusions and policy recommendations 68

References 69

Notes 71

5. SME R&D and innovation 72

SME performance in R&D and innovation 73

SME R&D and innovation policies: Mid-term evaluation of the national SME Strategy 76

Conclusions and policy recommendations 89

References 90

Notes 92

6. SME digitalisation 94

SME digitalisation conditions 95

SME digitalisation policies: Mid-term evaluation of the national SME Strategy 98

Conclusions and policy recommendations 105

References 106

Notes 106

7. The green transition of SMEs 108

SME greening conditions 110

SME greening policies: Mid-term evaluation of the national SME Strategy 115

Conclusions and policy recommendations 125

References 126

Notes 128

Tables 8

Table 6.1. Digital innovation hubs in Czechia and selected EU countries, 2022 101

Figures 7

Figure 1.1. SME contribution to the Czech economy 14

Figure 1.2. The OECD Product Market Regulation (PMR) indicator, Czechia and selected countries, 2023 and 2018 15

Figure 1.3. Administrative complexity and uncertainty in Czechia and selected countries 16

Figure 1.4. The Regulatory Impact Assessment (RIA) process in Czechia and selected countries, 2021 and 2017 20

Figure 2.1. The EIF's SME access to finance index across EU countries, 2022 30

Figure 2.2. Credit to non-financial corporations at market value, 2023 31

Figure 2.3. Business angel investment and VC investments across EU countries, 2022 32

Figure 2.4. Credit guarantee volumes in selected countries, 2021 34

Figure 3.1. Exports of goods and services in Czechia and selected countries, 2023 and 2012 45

Figure 3.2. Share of export volume and number of exporting enterprises by firm size, 2022 46

Figure 3.3. Top 5 SME manufacturing exporting sectors and SME participation in long GVCs in Czechia, 2022 47

Figure 4.1. Participation of adults in training in Czechia 60

Figure 4.2. Enterprises training their employees with ICT skills 61

Figure 5.1. Gross Expenditure on R&D (GERD) by source of funding, Czechia and selected countries, 2021 and 2017 74

Figure 5.2. Business enterprise R&D (BERD) expenditure by funding sector and firm size, Czechia and selected countries, 2020 75

Figure 5.3. SME innovation performance, Czechia and selected countries, 2020 76

Figure 5.4. Patent applications in Czechia and selected countries, 2021 79

Figure 5.5. Implicit tax subsidy rates for R&D and total government incentives for R&D, Czechia and selected countries, 2021 and 2023 80

Figure 5.6. Share of R&D tax budget by firm size, CZK million and number of companies, 2015-2022 81

Figure 5.7. Survey evidence on collaboration between business and universities, Czechia and selected countries, 2023 and 2020 83

Figure 5.8. SME integration of networks or use of network technologies in Czechia, 2021 and 2022 87

Figure 6.1. Internet coverage in Czechia, 2022 96

Figure 6.2. The digitalisation of Czech enterprises 97

Figure 6.3. Challenges faced by Czech companies during the digitalisation process, 2023 103

Figure 7.1. Carbon emission intensity of GDP, Czechia and the EU-27, 2013-2022 111

Figure 7.2. Share of green jobs and polluting jobs by region in Czechia, 2011 and 2021 112

Figure 7.3. Climate strategies and climate actions of Czech SME, 2024 113

Figure 7.4. Resource efficiency actions by firm size (SMEs) and sector in Czechia, 2024 114

Figure 7.5. SME barriers to resource efficiency actions, Czechia, EU and CEE, 2024 115

Boxes 8

Box 1.1. Digital portals currently under development by the Czech government 18

Box 1.2. National business environment reforms from an EU legislation perspective 23

Box 2.1. The case for combining financial and non-financial support: Evidence from Canada 38

Box 2.2. OECD principles on regulatory sandboxes 38

Box 2.3. SME financing policies from an EU legislation perspective 39

Box 3.1. CzechTrade's Design Centre 50

Box 3.2. Italy's export consortia 51

Box 3.3. SME internationalisation policies from an EU legislation perspective 53

Box 4.1. SME and entrepreneurship skills policies from an EU legislation perspective 67

Box 5.1. Main EU funding sources for RDI by SMEs in Czechia 77

Box 5.2. The SIGMA programme of Czechia's Technology Agency (TA CR) 78

Box 5.3. The TRIO programme evaluation 84

Box 5.4. R&D and innovation policies from an EU legislation perspective 88

Box 6.1. Business development services for SME digitalisation in the Olomouc region 102

Box 6.2. The Digital meter (Digitalomètre) of Bpifrance 103

Box 6.3. SME digitalisation policies from an EU legislation perspective 104

Box 7.1. Czechia's Energy Performance Database 119

Box 7.2. Possible indicators to monitor SME participation in the circular economy 123

Box 7.3. SME greening policies from an EU legislation perspective 124

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