The City of Prague
Prague is the capital of the Czech Republic and the country’s geo-political, business and social centre. It is also the country’s most prosperous region, creating more than 20% of the Czech Republic’s GDP. Prague has a low unemployment rate and income levels as high as 30% above national average. Approximately one fifth of all foreign investment in the Czech Republic is concentrated in Prague and the city is well connected with an international airport and good motorway connections linking it with the major centres in the East and West.

In recent years services, high-value-added businesses and tourism have become Prague’s fastest-growing sectors. While traditional industry has been declining, the city has benefited from restructuring towards greater efficiency and competitiveness. Industrial sectors in the city are mainly printing, chemical, pharmaceutical, ICT and the food processing industry. The building industry has become the stabilising factor while the banking and insurance industries contribute significantly to the region’s economy, followed by the tourist industry and services in general.

Prague is a centre of national research and development activities and is the foremost educational centre of the country. The city has eight universities including Charles University, the oldest university in Central Europe, and is home to the Czech Republic Academy of Sciences which operates a network of currently sixty research institutes, as well as many other laboratories and development centres. Better utilisation of research results and cooperation between academia and the production base still remains a weakness.

A Strategic Plan for Prague outlining strategic priorities and long-term aims over a period of 15–20 years was adopted in May 2000. A Regional Innovation Strategy for the city of Prague has been recently developed and will be adopted as a follow-up to the Strategic Plan of the city.

The city of Prague participates in several European projects focusing on international cooperation and exchange of experience.