ŠAVŠ/TAČR Digital Czechia in a Digital Europe

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RECOMMENDATIONS The analysis shows that the Czech Republic should focus in particular on the following areas that can attract new startups to the Czech Republic. It means: • Tax relief in the first years of business (including social and health insurance contributions). As can be seen from the analysis, the most popular countries for starting startups have radically reduced the corporate income tax, while also providing specific tax relief for a certain period of time. These countries currently include Spain, the United Kingdom and Ireland. For example, startups in Ireland do not pay any income tax on profits up to 120,000 EUR for a period of 3 years from their inception. This tax relief is intended exclusively for startups, not all business corporations. • Ensuring better infrastructure (high speed internet, communication). Quality infrastructure is an absolute basic prerequisite for the development of business activities. At present, it is necessary to focus on improving and expanding broadband in the Czech Republic, especially 5G networks. Otherwise, startups will be allocated only in Prague, Brno or Ostrava. Without a quality internet connection, it would be completely impossible to attract new startups to the country and use their economic potential, which it brings with it. For this reason, all major countries are constantly developing their infrastructure as much as possible to provide the best conditions for development not only for businesses but also for their citizens. These countries include, in particular, Ireland, Spain, Sweden and the United Kingdom. • Higher promotion of the Czech Republic’s interest in startups, including improved PR in the area of startups. There is a need to raise awareness that the Czech Republic has an enormous interest in attracting new business activities. Improvements in Public Relations can be recommended. Significant activities in this area are carried out in particular by Sweden, which presents itself as a country in which startups are developing successfully. Sweden organizes various activities aimed at promoting startups and motivating different age groups to do business. An example is the Venture Cup, which is a popular PR tool that motivates young people to try to start their own startup. In Spain, on the other hand, the government has prepared a guidance document from which all the necessary information needed to set up a business in that country can be obtained. This document is intended for citizens of individual Member States. • More efficient use of EU funds. Based on the conducted comparative analysis, it can be stated that the Czech Republic could more effectively drawmore funds from the European Union program. (It can be seen, for example, in the relatively low absorption of funds under the Horizon 2020 program, which will end soon). One of the countries that could serve as an inspiration for the Czech Republic is Ireland. The country draws resources from European Union funds, which it then uses to develop accelerators and incubators that make it easier for innovators and visionaries to establish and effectively launch their own startup solutions.