Czech Republic and Digital Transformation: Progress and Challenges for 2024

The Czech Republic, long committed to pursuing a balanced and inclusive digital transformation, has made significant progress in some key areas while still facing notable challenges in others. With an estimated budget of 1.77 billion (0.6% of GDP), the country aims to achieve its digital objectives by 2030, contributing to the ambitious targets of the EU Digital Decade. However, while some indicators align with the Union’s aspirations, others remain below European averages.

Strengths in 2024

1. Basic Digital Skills
   One of the Czech Republic’s key strengths is the level of digital skills among its population. In 2024, 69.1% of citizens achieved at least a basic level of digital skills, significantly above the EU average of 55.6%. This success stems from the introduction of digital subjects in primary and secondary school curricula and the availability of digital tools in schools. Czech students benefit from an education system that promotes digital literacy from an early age, preparing new generations for the challenges of an increasingly tech-driven economy.
2. Advanced Technologies
   The Czech Republic aspires to excel in cutting-edge technologies such as artificial intelligence, quantum computing, and microchips. The country is updating its national strategies to keep pace with businesses’ growing adoption of AI. This vision is supported by strong public-private collaboration and targeted investments in research and development. Initiatives like Digital Innovation Hubs (DIHs) are essential to fostering the adoption of advanced technologies in businesses while simultaneously developing the skills needed to use them effectively.

Weaknesses in 2024

1. Connectivity Infrastructure
   One of the main obstacles to digital progress is the slow deployment of very high-capacity networks (VHCNs). Currently, optical fibre coverage is only 36.1%, while fixed broadband capable of delivering 1 Gbps represents just 2.95% of total subscriptions. These figures highlight the need to accelerate the development of connectivity infrastructure to provide a solid foundation for digital transformation.
2. SME Digitalization
   Despite the presence of high-tech industries such as microelectronics and quantum computing, only 49.3% of Czech SMEs possess a basic level of digital intensity, well below the EU average of 57.7%. This discrepancy underscores an urgent need to support SMEs in adopting digital tools by offering incentives, training, and access to adequate technological infrastructure.

European Context and Citizen Perceptions

According to the special Eurobarometer survey “Digital Decade 2024,” Czech citizens’ perceptions of digital rights protection show mixed signals.

• 46% of respondents do not believe that the EU adequately protects their digital rights, marking a 5% decline in trust compared to 2023.
• The main concerns include:
  • Online safety for children (58%)
  • Control over personal data (44%)

On the positive side:

• 57% of respondents appreciate the freedom of expression ensured in the digital environment.
• 55% recognize the value of privacy-friendly technologies, both figures aligning with EU averages.

Progress Towards the Digital Decade

The Czech Republic’s roadmap for the Digital Decade includes ambitious targets for 12 of the 14 key performance indicators (KPIs). Among these, five are fully aligned with the EU’s 2030 goals, while seven remain below, particularly those related to the adoption of advanced technologies by businesses. To bridge these gaps, the Czech government plans to:

• Invest strategically in infrastructure and skills.
• Develop incentive policies for SMEs.
• Foster public-private collaborations to accelerate innovation.

Conclusions and Prospects

The Czech Republic’s digital strategy highlights a mix of strengths and weaknesses, reflecting the challenges and opportunities of a complex but necessary transition. While the country continues to invest in digital skills and advanced technologies, addressing infrastructure gaps and promoting greater SME digitalization remains crucial.

With careful strategic planning and effective resource allocation, the Czech Republic is well-positioned to achieve an inclusive and sustainable digital transformation and contribute to the EU Digital Decade goals. However, success will depend on the ability of the government and businesses to collaborate in overcoming existing obstacles and ensuring equitable benefits for all citizens.

Fonti: https://www.expats.cz/czech-news/article/czech-railways-launches-express-train-from-prague-to-the-baltic-sea; https://www.ceskedrahy.cz/Baltic-express?language=cs; https://www.idnes.cz/ekonomika/doprava/baltic-express-praha-gdyne-ceske-dragy-zpozdeni.A241215_113230_ekonomika_bro ; https://www.zeleznicni-magazin.cz/aktuality/polska-lokomotiva-pro-baltic-express ; https://www.ceskedrahy.cz/en/press-center/press-releases/baltic-express-will-start-running-already-four-months-new-2025.