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 87 % in 2018, 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, 2020
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, 2020
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 % (16,352 hectares in 2020) 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 54 %, apricots – 76 %) and vegetables (cucumbers – 55 %, tomatoes – 88 %) and oil seeds (sunflower – 69 %) 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).
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Regional Development Agency of South Moravia
Výstaviště 405/1
603 00 Brno
Czech Republic
www.rrajm.cz
- II. Legal Regulation of Business Activities, Establishment of Business Entities
- III. Accounting and Auditing
- IV. Tax System in the Czech Republic
- V. Employment and Labour Regulations
- VI. Visa and Integration after Arrival
- VII. Co-operation with South Moravian Institutions
- VIII. Practical Information: Working and Living in South Moravia