SOURCE: CzechInvest

December 19, 2006 10:40 ET

U.S. Turns to Czech Republic for R&D Expertise in 2006

U.S. Companies Outsource Internationally to Find Engineering Talent

PRAGUE, CZECH REPUBLIC -- (MARKET WIRE) -- December 19, 2006 -- Over 60 percent of foreign direct investments (FDI) announced by United States-based companies in the Czech Republic in 2006 are research-and-development projects in innovation industries. According to data collected by CzechInvest, an agency of the Ministry of Industry & Trade of the Czech Republic, a high percentage of these projects were design projects in information technology and software.

"In 2006 we've seen U.S. technology companies look to the Czech Republic for highly skilled infrastructure technology and software engineering talent," said Radomil Novak, Director, U.S. Operations-West and Adviser to the CEO, CzechInvest.

Out of 16 U.S. companies announcing new investments or major expansions in the Czech Republic 12 are R&D and high value-added services projects. New projects include the following:

--  Sun Microsystems opened a new state-of-the-art development and
    technology center.
--  Microsoft opened its first worldwide center for mobile applications.
--  Computer Sciences Corporation (CSC), a leading supplier of information
    technology services, opened a new center for the development of software
--  Quadbase Systems Inc., providers of Web-delivered reporting and
    charting tools, opened a new software R&D center.
--  Solectron Corporation, providers of product design, supply chain
    management, manufacturing and aftermarket services, announced this month it
    is establishing a new high-tech repair center in the Czech Republic.
--  Hewlett-Packard established a computer technology supply chain
    headquarters to serve Europe, the Middle East and Africa.
--  Honeywell International established a global aviation center.
--  Rannoch Corporation acquired ERA a.s., Czech aerospace surveillance
    technology company, to expand Rannoch's technology capabilities and reach
    in Europe.
--  Procter and Gamble is expanding its production and opened a new
    engineering center.
--  Ingersoll-Rand announced the company is opening a new research and
    training center.
In 2006, approximately 30 percent of new investment in the Czech Republic was R&D or services-related. International companies have opened more than 40 development, technology and distribution centers in the Czech Republic in the past two years.

CzechInvest's Silicon Valley-based office is experiencing an increase in the number of companies in the IT and software sector considering offshoring R&D. Out of nearly two dozen new projects and inquiries under negotiation, more than 70 percent are interested in the country's engineering R&D talent, mainly in IT and software. Approximately 30 percent of the new projects and inquiries have originated from small enterprises based in Silicon Valley seeking affordable, high-end design.

"As an emerging technology company based in Silicon Valley, we're looking for highly skilled engineers and cost-effective solutions that will help us move our product development forward," said Fred Luk, president, Quadbase Systems. "We selected the Czech Republic for its talent pool and resources. We've got an aggressive growth strategy and timeline to market for new products."

Over the last few years, the Czech Republic has worked to capture FDI dollars and bring high-tech jobs to its highly skilled and educated workforce through economic incentives. The Czech Republic is one of the fastest-growing nations in the European Union.

"In our Chicago-based office, we see a similar trend in increased interest for R&D in the automotive and aerospace industries. Overall, companies are looking for world-class talent, solid infrastructure and the ability to reach key European markets," said Bohuslav Frelich, director, CzechInvest-Chicago.

About CzechInvest

CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic. The agency is the sole organization that may submit applications for investment incentives, manage incentives and coordinate the development of investment support in the Czech Republic. CzechInvest promotes the country abroad and acts as an intermediary between the European Union and small- and medium-sized enterprises in implementing EU structural funds in the Czech Republic. For more information, please visit

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