Market Potential in the Czech Republic and Slovakia

The Czech Republic and Slovakia are emerging as technology hotspots in Central Europe. Both countries possess a highly skilled workforce with a strong engineering foundation, while labor costs remain competitive—creating favorable conditions for technology companies to expand their operations. Although the Czech and Slovak markets are moderate in size, they are highly integrated: as members of the European Union (EU), companies here enjoy easy access to the European single market. Their political and economic stability, coupled with a central geographic location (neighboring Germany, Austria, Poland, etc.), make these countries strategic gateways to the EU market.

In addition to advantages in workforce and location, both countries boast vibrant startup ecosystems strongly supported by their respective governments. In Slovakia, innovation hubs are forming in Bratislava and Košice, attracting both local and global companies thanks to abundant talent and cost efficiency. Numerous high-tech sectors are thriving, from artificial intelligence (AI), blockchain, fintech, to game technology. 

In the Czech Republic, a long-standing tradition of education and research has fostered a culture of innovation: the government and businesses are heavily investing in research and development (R&D) of cutting-edge technologies such as AI, high-performance computing (HPC), and quantum computing. As a result, the Czech Republic maintains its status as a leading innovator in the region. Notably, the adoption rate of digital technology among Czech businesses is very high—over 47% of companies (with more than 10 employees) use cloud computing solutions, exceeding the EU average and surpassing even France and Germany. This indicates a business environment well-prepared for digital transformation, making the Czech Republic highly attractive to tech investors.

Another appealing factor is the preferential policies and government support programs in both countries. The Czech and Slovak governments have placed innovation, digital transformation, and green technology development at the center of national strategy. They work closely with domestic business associations to remove obstacles (for example, Slovakia collaborates with SAPIE – the Slovak Alliance for Innovative Economy – to boost startups), while also actively improving the regulatory environment, offering tax incentives, and increasing public funding for innovation. Despite existing challenges (such as the shortage of IT personnel in Slovakia), recent developments—such as dedicated legislation and tax incentives for startups—demonstrate the governments' determination to position the Czech Republic and Slovakia as attractive destinations for international tech investors.

Technology Programs and Initiatives in the Czech Republic

The Czech government is implementing large-scale programs to promote innovation and digital transformation in the coming decade. At the macro level, the “Digital Czechia” strategy provides an overall roadmap, aiming to modernize the economy and build an advanced digital ecosystem. In addition, the updated National Artificial Intelligence Strategy to 2030 (NAIS 2030) was approved in July 2024. 

This AI strategy outlines key priorities, including: applying AI in research and development, industry and business, education and workforce training; developing AI skills and adapting the labor market; ensuring ethical, legal, and security aspects of AI; and incorporating AI into improving public administration services. The Czech Republic aims not only to master AI technology to enhance quality of life and production capabilities but also to become a “creator” rather than merely a user of AI technologies globally.

Of particular note is the TWIST program (Transfer, Research, Development and Innovation for Strategic Technologies), approved in June 2024, which focuses on supporting strategic technologies such as AI, semiconductors, and quantum computing. TWIST has a national budget of EUR 209 million and will run from 2025 to 2031, with the first project call already open (with AI as a priority area). This program aims to translate core technology research into practical industrial applications, thereby strengthening the Czech Republic’s technological autonomy.

At the enterprise level, a network of European Digital Innovation Hubs (EDIHs) has been established in six regions across the Czech Republic, alongside an AI Testing and Experimentation Facility. These centers offer “test-before-invest” advisory services in labs and real-world environments, digital skills training, financing support, innovation network connections, and more—helping businesses, especially SMEs, successfully undergo digital transformation. At the same time, the government is committed to nurturing the startup ecosystem. The Technology Incubation program, operated by CzechInvest, supports up to 250 startups via seven sector-specific hubs (AI, advanced technologies, smart mobility, space, green tech, biotech, defense and creative industries). Startups receive mentorship, coaching, and access to research infrastructure in specialized fields.

To help startups expand globally, CzechInvest is also running the Internationalization Acceleration program with a budget of CZK 215 million (around USD 9 million) from the EU Recovery Fund. This 2024–2025 program aims to support at least 100 Czech tech startups in expanding to international markets. The first funding call started in mid-2024, targeting small businesses and tech-focused startups. Participating startups receive funding (up to CZK 3 million per project) for activities such as pre-mentoring, acceleration programs, R&D expansion, attending international tech conferences, joining foreign incubators, etc. According to Minister of Industry and Trade Jozef Síkela, through CzechInvest, the government seeks to elevate Czech tech startups from the seed stage to global expansion while promoting the Czech Republic as a high-tech partner on the international stage. Previous programs such as CzechAccelerator and CzechDemo have already proven successful and laid the foundation for continued startup support.

Thanks to strong government engagement, the Czech innovation ecosystem is developing comprehensively. From strategic vision (Digital Czechia, National AI Strategy) to concrete tools (R&D funds, innovation centers, startup incubators), the Czech Republic is shaping a digital innovation economy in which both domestic and international businesses can benefit and contribute.

Technology Programs and Initiatives in Slovakia

Like the Czech Republic, Slovakia is accelerating its path toward digital transformation and technological innovation, particularly by leveraging resources from the European Union. The Slovak government has approved the Digital Transformation Strategy to 2030, which is being implemented through the Digital Transformation Action Plan 2023–2026. This plan focuses on increasing digitalization across the Slovak economy, particularly targeting small and medium-sized enterprises (SMEs) and innovation-driven businesses. 

Solutions include promoting the adoption of advanced digital technologies in manufacturing, building a flexible digital society, and ensuring information security. The government has also approved the National Digital Skills Strategy 2023–2026 to develop a comprehensive digital workforce—from improving computer science education in schools to reskilling the labor force, increasing the proportion of women in ICT, and closing the digital divide in remote areas. These efforts aim to equip Slovak citizens and businesses with the skills necessary to participate in the digital economy.

A key enabler for these programs is the European Union’s Recovery and Resilience Facility (RRF). Slovakia is leveraging this fund to drive both digital transformation and green growth. In the digital sphere, the RRF supports initiatives such as digital vouchers for businesses, a network of Digital Innovation Hubs linked to the EU’s EDIH network, helping enterprises enhance digital capabilities and foster innovation. For green transformation, a significant credit line from the European Investment Bank (EIB) is helping Slovakia co-finance a wide range of green and digital technology projects across the country. 

In February 2025, the EIB signed a EUR 240 million loan to Slovakia as matching funds for EU-supported projects—part of an EUR 800 million credit package aimed at enhancing environmental sustainability and economic competitiveness in Slovakia. 

These resources will be invested in various areas: improving research and innovation, digitizing the economy, building SME capabilities, developing skills for smart specialization, expanding digital connectivity, as well as energy efficiency, renewable energy, climate adaptation, circular economy, and biodiversity conservation. According to Slovakia’s Ministry of Finance, the EIB’s support helps Slovakia lead in achieving EU sustainability goals while also creating jobs and improving economic resilience.