Hidden Champions of the Czech Republic

Abstract

After a successful transition period, the Czech Republic aims at further transforming its economy, from being a cost-effective sub-contractor with a convenient location close to developed Western markets to increasing domestic value added in its exports. Some Czech companies have already managed to build and dominate market niches and have become local, regional, or even global leaders. This chapter contains case studies of four little known companies—Bioveta, Elko EP, Microrisc, and Phonexia—in the pharmaceutical, electronics, and IT sectors. They benefit not only from their innovative capacity, but also from their adaptability. They combine a high-level professional know-how with the ambitious vision of their leaders. Our four case studies provide evidence of gradual and ongoing structural changes in the Czech economy toward a more favorable position in the global value chain. At the same time, all four hidden champions highlight the long-term weaknesses of the Czech business environment, specifically in terms of regulation, infrastructure, and education system. These three domains need improvement for the economic transition in the Czech Republic to be successfully completed.