The region surpasses all other Czech regions — including Prague — in knowledge intensity and also exceeds both the Czech national average and the EU average. In terms of R&D-to-GDP ratio, the region performs on par with renowned European innovation hubs such as Freiburg (Germany), Lower Franconia (centered in Würzburg), Tyrol (centered in Innsbruck), and Southern Sweden (centered in Malmö).
“The South Moravian Region systematically supports research and development, the start-up ecosystem, and the cooperation between academia and business as the key pillars of our regional development,” said Jan Zámečník, Deputy Governor of the South Moravian Region. “Our goal is not only to maintain but to further strengthen our position as the innovation leader in the Czech Republic and a significant player in Europe.”
Business Sector Leading the Growth in R&D
The 2023 increase in R&D investment was driven primarily by the private sector. The most dynamic growth occurred in the electronics and electrical engineering industries, where R&D expenditure rose by 17% compared to 2022. This is largely due to increased investment in electron microscopy — a field in which the Brno Region has become a global leader.
Companies such as Thermo Fisher Scientific, TESCAN, and Delong Instruments are at the forefront of this high-tech transformation. Together, they produce around one-third of the world’s electron microscopes, employ approximately 2,800 highly skilled workers, and invested roughly CZK 1.8 billion in R&D last year.
“Excellence in electron microscopy allows us to build a strong position in the semiconductor industry, which is strategically important for all of Europe. For Brno, supporting these high-tech fields is a top priority, as they create highly qualified jobs and strengthen the region’s overall competitiveness,” said Anna Putnová, Brno City Councillor for Innovation and Research Cooperation.
A Key Player in the European Semiconductor Landscape
Brno is now home to the Czech Semiconductor Centre, part of the EU’s Chips Act initiative, aimed at boosting Europe’s role in semiconductor development and manufacturing. This development builds not only on strengths in electron microscopy, but also on expertise in chip design, electronic design automation, and materials research, driven by institutions such as Brno University of Technology, Codasip, and onsemi.
Strategic Sectors with Global Potential
Other sectors where the region excels include cybersecurity, which attracts the most venture capital investment in the Czech Republic. At the start of 2025 alone, Brno-based companies Whalebone, Threatmark, and Safetica raised a combined €40 million.
The space industry is also rapidly growing, with over 30 companies employing 410+ specialists engaged in international missions. Meanwhile, the gaming sector thrives with more than 40 studios and an active community of over 900 developers.
Talent as the Foundation of Success
Approximately 70,000 people now work in IT, science, and technology in the region — a 52% increase since 2011. The vast majority are employed in the private sector, reflecting strong demand for tech talent and rising market value, salaries, and career opportunities within the regional innovation ecosystem.
Academic institutions play a crucial role in this success. Brno is home to 65,000 university students, more than a third of whom are enrolled in STEM disciplines, and nearly a quarter come from abroad, contributing to the region’s international outlook and talent pool.
