Economic Branches

South Moravia ranks among the regions with significant economic potential with its general domestic product representing one tenth out of the national GDP (regional GDP per capita in purchase parity power was 85 % in 2017, EU28=100 %).

Service Industries

Brno is undoubtedly the natural centre of administration and services of the South Moravian Region. Almost 70 % of its workforce employed in various service sectors as well as its significant knowledge potential (high share of university graduates, availability of workforce with foreign language capabilities etc.) ranks the city among the most competitive locations not only within the Czech Republic but also within the Central European region. The city thanks for this reputation to a strong inflow of significant IT investments such as IBM Global Delivery Center CR and Red Hat Czech, both have their software design centres here. But also to the production companies, such as Honeywell Technology Solutions (Global Design Center - Aerospace, Home & Building Technologies), Thermo Fisher Scientific/ FEI (electron microscopes), BMT (medical technology), Siemens (industrial turbomachinery), with their research and development centres in Brno. Multinational companies have gradually established tens of such centres in the region. Another important player in the service industries in Brno is Trade Fairs Brno (Veletrhy Brno) – the largest company in Central Europe specialised in fairs and exhibitions makes Brno an important hub of international trade. However, the most significant employers in the sector of service industries are The Faculty Hospital Brno and Masaryk University (both with more than 5,000 employees). Major companies have established their shared service centres or customer support centres such as: Vodafone, SolarWinds Czech, Lufthansa, PPG Industries and Zebra Technologies.

Tab. 5: Representatives of IT sector in the South Moravian Region

Company name

Location

Specialization

Asseco Group

Brno

GIS solutions

AT&T Global Network Services

Brno

technical support of network (LAN) telecommunication services

Avast Software

Brno

security software products

CGI IT Czech Republic

Brno

IT end-to-end services and solutions

Infosys BPO

Brno

infrastructure management and package implementations

RWS Moravia

Brno

specialized global services, digital marketing and outsourcing

Red Hat Czech

Brno

software development

SAP ČR

Brno

enterprise application software, development centre

Y Soft Corporation

Brno

intelligent enterprise office solutions

Source: RRA JM, 2019

Biotechnology

The South Moravian region is turning into a central European biotech hub. The current initiative - a biotech innovation cluster – is based on the 120 million USD campus of Masaryk University (www.muni.cz) fostering science in the fields of medicine, chemistry and biology.

The university’s integrated laboratories for biomedical and environmental technologies and a large research and teaching hospital have already been built and opened. Biotechnological incubator (INBIT) for more than thirty biotechnology start-ups is ready from 2008. The area of nearly 3,000 square meters contains labs, offices, meeting halls, kitchens and necessary technical support and infrastructure, and other 7,000 square meters of operating premise for the beginning perspective entrepreneurs.

Brno’s position in the field of biotechnologies was also significantly improved through project such as Central European Institute of Technology (CEITEC) becoming a supra-regional centre for innovative research in the field of nanotechnology, structural biology, molecular medicine, genomics and proteomics of plant system, veterinary medicine and many others. The Operational Program R & D for innovation (European Centres of Excellence) is the major source financing this project of estimated costs exceeding 200 mil. EUR. For more information see the chapter VII.

Another project financed through this operational programme is International Clinical Research Centre (ICRC) of St. Anne’s University Hospital Brno which represents a new generation research centre focused on cardiovascular and neurological diseases. The centre with total budget of approximately 220 mil. USD for the period 2011 – 2015 is being built up in cooperation with American Mayo Clinic (www.mayoclinic.org) and other Czech and foreign partners. For more information see the chapter VII.

More information about biotechnology can be found on www.gate2biotech.com.

Processing Industry

In spite of the fact that several big, traditional, Czech-owned engineering companies faced serious financial difficulties during the 1990s (esp. Zbrojovka, Královopolská, Zetor) and thousands of employees have been dismissed, the region’s most important industries are still engineering and metalworking (especially power engineering, mechanical engineering and electrical engineering) and electronics. These are followed by chemical and pharmaceutical industries, food-processing and textile manufacturing which, however, does not reach its former fame.

Tab. 6: Representatives of processing industry in the South Moravian Region

Company name

Location

Specialization

Engineering and metalworking

ČKD Blansko Holding

Blansko

water turbines

Daikin Device CR

Brno

air conditioners and accessories

IFE-CR

Modřice

automatic door systems for railway vehicles

Kovolit

Modřice

non-ferrous metal founding, forging

Královopolská

Brno

crane and hoist device

Lear

Vyškov

automotive seating systems and electrical power management system

Metaldyne Oslavany

Oslavany, Zbýšov

cold pressing of parts for automotive

Minerva

Boskovice

sewing machines

Novibra

Boskovice

spindle technology

OTIS

Břeclav

elevators, escalators and moving walkways

Siemens Industrial Turbomachinery

Brno

steam turbines

s. n. o. p. cz

Pohořelice

metal parts for the automotive industry

Šmeral

Brno

forming machines

TOS

Kuřim

cutting machines

VAG

Hodonín

armatures for water management

Zetor

Brno

tractors, agricultural machinery

Electronics

ABB

Brno

electrification solutions and medium voltage products

ALPS Electric Czech

Sebranice

electronic components

Ademco

Brno

security technology

AVX Czech Republic

Bzenec

tantalum capacitators

CommScope

Modřice

communications equipment, antennas

Gebauer a Griller Kabeltechnik

Mikulov

cables, wires and cable harnesses

Juli-Motorenwerk

Moravany

electric motors for handling machines

Siemens Electric Machines

Drásov

synchronous generators

Thermo Fisher Scientific Brno/ FEI

Brno

electron microscopy solutions

Tyco Electronics Czech

Kuřim

cable and connector technology

VUES/ Moog Brno

Brno

special and non-standard electric rotating machines

Textiles, wearing apparel, leather and related products

DINA - HITEX

Bučovice

surgical drapes

Kordárna

Velká nad Veličkou

cord fabrics

Lohmann & Rauscher

Slavkov u Brna

wound care and compression therapy products

Nová Mosilana

Brno

yarn and woollen fabrics

PFNonwovens Czech

Znojmo

synthetic nonwoven textiles

Food-processing

Delimax

Hodonín

fish products and delicatessen

Hamé

Podivín

jams and fruit mixtures

Moravskoslezské cukrovary

Hrušovany nad Jevišovkou

sugar processing

Penam

Brno

bakery products

Savencia

Hodonín

dairy products

Starobrno

Brno

beer production

The Candy Plus Sweet Factory

Rohatec

candy production

Vodňanské kuře

Modřice

production of frozen chickens, small meet products

Chemical, pharmaceutical, plastic

Alca plast

Břeclav

sanitary ware

Bioveta

Ivanovice na Hané

veterinary and human products

BKR CR

Vyškov

plastic components for roof windows

Fosfa

Břeclav

fertilizers

Gumotex

Břeclav

polyurethane foam and rubber products

Hartmann-Rico

Veverská Bítýška

cotton-wool and bandage materials

Nevoga

Znojmo

plastic profiles and plastic spacers

Ceramics and glass

Českomoravský cement

Mokrá

building materials – cement, concrete

Laufen CZ

Znojmo

bathroom ceramics

P-D Refractories CZ

Velké Opatovice

refractory products - linings for heating equipment

Pyrotek

Blansko

refractory materials for foundries and aluminium industry

Saint Gobain – Adfors

Hodonice

glass fibers

Vetropack Moravia Glass

Kyjov

glass containers for the beverage and food industry

Paper and wood-processing, printing

CPI Moravia Books

Pohořelice

printing

Unilin

Vyškov

wood flooring industry

Moraviapress

Břeclav

printing

Source: RRA JM, 2019

Agriculture

Despite being one of the most fertile parts of the Czech Republic with a relatively important role played by agriculture, the overall importance of this sector in the economy of the region is relatively small. Currently agriculture employs only 2.9 % of labour force. Poultry breeding dominates livestock production followed with pig farming and cattle breeding (especially in the hilly areas in the northern part of the region). Crops cultivated in the region are mainly cereals (wheat, barley), maize and oil-seed rape. Viticulture is an important regional specialty whereas 93 % (16,379 hectares in 2019) of Czech vineyards located in South Moravia. Contrary to the overall trend in agriculture, this sector has been on a steady increase - especially due to the growing popularity of wine among Czech consumers but also due to an increased export abroad. Production and processing of fruits (share out of total Czech Republic harvest – peaches 58 %, apricots – 78 %) and vegetables (cucumbers – 63 %, tomatoes – 88 %) and oil seeds (sunflower – 56 %) are also important and employ a considerable share of population in the southern part of the region (more than one tenth out of the total number of employees).

  • Regional Development Agency of South Moravia
    Královopolská 139
    612 00 Brno
    Czech Republic
    www.rrajm.cz

    Jan Hladík
    +420 541 219 282
    +420 541 212 125
    jan.hladik@rrajm.cz