In 2006, about 30 percent of new investment in the Czech Republic was R&D or services-related as international companies have opened more than 40 development, technology and distribution centers in the country

According to data collected by CzechInvest, 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 of U.S. Operations-West and adviser to the CEO for 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:

* Sun Microsystems, which opened a state-of-the-art development and technology center.

* Microsoft, which opened its first worldwide center for mobile applications.

* Computer Sciences Corp. (CSC), a supplier of information technology services, opened a center for the development of software applications.

* Quadbase Systems Inc., a provider of Web-delivered reporting and charting tools, opened a software R&D center.

* Solectron Corp. a provider of product design, supply chain management, manufacturing and aftermarket services, announced in early December 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 Corp. acquired ERA, a Czech aerospace surveillance technology company, to expand Rannoch’s technology capabilities and reach in Europe.

In 2006, about 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, Calif.,-based office is experiencing an uptick 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. About 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 of 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.”

During the past several years, the Czech Republic has worked to capture FDI dollars and bring high-tech jobs to its highly skilled and educated work force through economic incentives.

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