Changes in the rate of investments in the Czech and Slovak Republics and in high-tech manufacturing industry of both countries
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Date
2013-08
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Technická Univerzita v Liberci
Technical university of Liberec, Czech Republic
Technical university of Liberec, Czech Republic
Abstract
Competitiveness of the Czech Republic and the Slovak Republic is affected by the use of resources that are available. Neither country has a large area, nor raw-material potential and only a reasonable tourist attraction. Competitive advantage is a need to be built on other sources. The starting point for the economy and most companies is to find a position in customer-supplier chain, which provides high added value. Macroeconomic competitiveness can be based on quantitative factors (low material and labor costs) or qualitative factors. Qualitatively based competitive advantage must be continuously supported by investments, therefore it is often related to a relatively high investment rate. Years 2008 – 2010 are and will be associated with the effects of the global economic crisis, which has the consequence of reducing expenditures. Companies reduce costs, particularly where it was possible, significant and did not have an immediate impact. Capital expenditures were thus one of the first items restrained. This article aims to analyze the situation in the economy, which is both very important for the competitiveness of the Czech and Slovak Republics and very sensitive to the need for continuous inflow of investment. The chosen branch is the high tech manufacturing industry. This paper analyzes the status and development in high-tech manufacturing in years 2008 – 2010 and provides spatial and trend comparison (development is compared in the Czech Republic, the Slovak Republic and the EU-27 average). Indicators compared in the article are relative measures, in order to keep comparability correct. Article also compares different developments of companies depending on the type of ownership (domestic or foreign owner) and size of the company (small, medium, large). Article seeks to highlight the strengths and weaknesses in needs and assessing of companies, so that they can eventually be purposefully supported in order to get a direct impact on economic growth.
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rate of investment, gross fixed capital formation, high-tech sector, manufacturing industry
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978-80-7372-953-0