Czechia's High-Speed Rail Boosts Travel as Innovation Ranking Drops to 19th in EU

Czech Railways is poised to enhance Czechia's transportation landscape with the introduction of the high-speed Pendolino service on the Prague–České Budějovice line in South Bohemia. Set to commence by the end of this month, this service will reduce the journey time to just over 1.5 hours, promising improved passenger comfort and amenities. As the fastest passenger train to operate domestically by a Czech company, it is anticipated to bring significant cultural and economic benefits, making attractions such as Český Krumlov and towns like Tábor more accessible to residents of the Czech capital.

Amid these advancements, Czechia is grappling with challenges in its innovation landscape, as revealed by the European Commission’s 2025 European Innovation Scoreboard. The country has experienced a significant drop in innovation performance, now ranking 19th within the European Union. It stands below the EU average and shows minimal progress over the past seven years. This stagnation highlights ongoing structural problems within Czechia's research and development sector, marked by insufficient public and private investment, weak collaboration between academia and industry, and a lack of highly skilled professionals.

Identified as a "moderate innovator," Czechia achieves 80 percent of the EU average in innovation performance. However, along with Cyprus, it has witnessed the steepest year-on-year decline in Europe. This deficit poses risks to the country's economic growth and competitiveness. Analysts predict that addressing these concerns will require strategic reforms to bolster investor confidence and facilitate better cooperation between academic institutions and the commercial sector.

Despite a twofold increase in business R&D investment over the last decade, overall spending remains modest by Western European standards, with last year's allocation falling under CZK 100 billion (€4 billion). The European Commission highlights Czechia's limited participation in EU-level research programs, with only 1.6 percent involvement in Horizon Europe and similar initiatives, resulting in a low ratio of 3.4 participations per 1,000 scientists and engineers compared to EU innovation leaders.

Although Czechia exhibits above-average digital skills and growth in high-tech exports, these advantages are undermined by low labor productivity, fragmented system integration, and a limited number of university-educated professionals. Among post-communist EU member states, Czechia ranks third, trailing behind Estonia and Slovenia, but ahead of Hungary, Poland, and Slovakia. Bulgaria and Romania occupy the lowest spots in the EU rankings.

The European Innovation Scoreboard evaluates over 30 indicators across dimensions such as framework conditions, investments, innovation activities, and socioeconomic impacts. This provides valuable insights for policy-making at both national and EU levels, emphasizing the need for nations like Czechia to implement structural reforms that better align education, business, and research sectors, thereby narrowing the innovation gap.

In alignment with its commitment to sustainable energy, Czechia has augmented funds for its interest-free loan program dedicated to commercial and industrial solar and storage projects, raising the allocation to CZK 3 billion ($132.2 million). This initiative signifies the country's dedication to expanding sustainable energy solutions and facilitating a transition towards a greener economy.