05.08.2025
The Czech Republic has posted one of the sharpest drops in innovation performance across the EU, sliding to 19th place in the European Commission’s 2025 European Innovation Scoreboard. The country now ranks well below the EU average and has shown little progress over the past seven years, according to the annual report published this week.
While Nordic countries like Sweden and Denmark continue to lead Europe’s innovation landscape, the Czech Republic’s stagnation highlights more profound structural weaknesses in its research and development ecosystem. The report cites chronic underinvestment, both public and private, as well as poor integration between academia and industry, and a shortage of highly educated professionals.
At 80 percent of the EU average, the Czech Republic is grouped among the “moderate innovators,” but has registered the largest year-on-year decline in Europe, tied with Cyprus.
“Innovation is a key factor in economic growth and competitiveness,” said David Kotris, director of Enovation, a Czech consultancy focused on subsidy access. “What is especially alarming is that we have practically not moved forward in the last seven years. Investors are still hesitant, and cooperation between the academic and commercial sectors remains underdeveloped.”
EU Innovation Index 2025
1. Sweden
2. Denmark
3. Netherlands
4. Finland
5. Ireland
6. Belgium
7. Luxembourg
8. Austria
9. Germany
10. France
11. Estonia
12. Malta
13. Slovenia
14. Italy
15. Spain
16. Portugal
17. Cyprus
18. Lithuania
19. Czech Republic
20. Greece
21. Croatia
22. Hungary
23. Poland
24. Slovakia
25. Latvia
26. Bulgaria
27. Romania
Source: European Commission
Investment gaps and fragmented systems
Although Czech business investment in R&D has doubled over the past decade, overall R&D expenditure remains low compared to Western European standards. Less than CZK 100 billion (€4 billion) was spent on R&D last year, a figure Kotris argues must be significantly boosted through private capital if the country is to catch up
The Commission’s report also underscores low Czech participation in EU-level research programmes. The country accounted for just 1.6 percent of all participations in Horizon Europe and other funding schemes, translating to 3.4 participations per 1,000 scientists and engineers, far below the EU’s innovation leaders.
While Czechia scores above average in digital skills and has seen growth in high-tech exports, these strengths are not being effectively leveraged. The country continues to suffer from low labor productivity, insufficient systemic integration, and a persistently small pool of university-educated workers.
Regional context and outlook
Among post-communist member states, the Czech Republic ranks third, trailing Estonia (10th) and Slovenia (13th), but ahead of Hungary (22nd), Poland (23rd), and Slovakia (24th). Bulgaria and Romania remain at the bottom of the EU rankings.
The European Innovation Scoreboard tracks more than 30 indicators across four key dimensions: framework conditions, investments, innovation activities, and their socioeconomic impact. The data is intended to inform policymaking at both national and EU levels and track progress toward innovation-led growth across the bloc.
But for countries like the Czech Republic, the scoreboard also serves as a warning: without urgent structural reforms and stronger alignment between education, business, and research sectors, the innovation gap is likely to widen.
Source: https://www.expats.cz/czech-news/article/czechia-slides-to-19th-in-eu-innovation-index-suffers-sharpest-decline?
