The Czech-Moravian Confederation of Trade Unions and the Confederation of Industry of the Czech Republic take different views on the planned financial reform of state-funded research and development. This reform will mostly affect the Academy of Sciences of the Czech Republic and its employees. Substantial cutbacks are envisaged due to the current economic crisis. However, more funds will be allocated to applied research with a direct impact on manufacturing.
Funding for research and development
In recent years, expenditure on research and development (R&D) in the Czech Republic has increased; for example, between 2000 and 2006, the growth rate in R&D was 0.33%. Nevertheless, such funding is still lagging behind the European Union average: in 2006, Czech expenditure in R&D represented 1.54% of gross domestic product (GDP), while the EU27 average amounted to 1.76% of GDP. In 2009, the Czech Republic planned to invest CZK 24.83 billion (€980 million as at 27 July 2009) in R&D. Prior to the global economic crisis, further growth in expenditure was envisaged for 2010 and 2011, up to CZK 28.92 billion (€1.1 billion).
However, the government has now decided to freeze R&D expenditure at the level of 2009. From the beginning of 2010, following approval by the government, a new single method will be applied for evaluating scientific results and for public funding of Czech science. These changes will mostly affect the Academy of Sciences of the Czech Republic (Akademie věd České republiky, AV ČR), the budget of which will be curtailed by almost half during the next three years. On the other hand, more funds will be allocated to applied research with a direct impact on manufacturing.
Defending science academy
The Chair of AV ČR, Jiří Drahoš, has condemned the budget cuts, which he argues will result in the dismissal of researchers and the closure of research workplaces. The Academic Assembly – the supreme, self-governing body of AV ČR – appealed to the Czech government to reconsider its investment in R&D. Moreover, the academic staff did not rule out public protests.
This situation has become a topic of broad discussion, in which government officials, parliamentary political parties and the social partners have publicly presented their standpoints.
Trade union perspective
On 17 June 2009, the Trade Union of Workers in Science and Research (Odborový svaz pracovníků vědy a výzkumu, OSPVV) expressed its support for AV ČR management on the funding issue. OSPVV is a member of the largest trade union confederation in the Czech Republic, the Czech-Moravian Confederation of Trade Unions (Českomoravská konfederace odborových svazů, ČMKOS). In its declaration, OSPVV stated that:
a drastic cut of institutional funds for research done by AV ČR in the upcoming two years will mean, despite all possible saving measures, an actual loss of almost half of its jobs ... The current system, as it has been approved and should start gradually working from 2010, will result in the continuation of a brain drain from the Czech Republic ... OSPVV expresses its full support for the management of AV ČR.
Views of industry confederation
However, in its opinion published on 2 July 2009, the Confederation of Industry of the Czech Republic (Svaz průmyslu a dopravy ČR, SP ČR) argued that ‘the Academy of Sciences does not want to recognise the current economic situation, does not respond to the impacts of the crisis and insists on the budget increase, including the operating costs.’ Considering that AV ČR is financed predominantly by taxpayers – both natural and legal entities – SP ČR believes that it is legitimate to question the efficiency and applicability of the results of researchers’ activities. Furthermore, SP ČR highlights that domestic industry in the Czech Republic generates 40% of national GDP and, especially in the future, it cannot operate without the reinforcement of applied research.
Commentary
At present, the discussion on financing AV ČR increasingly concerns the significance of the basic and applied research, along with the efficiency of both scientific and research work. There is also a lack of agreement on whether scientific results can be considered of high quality. The new method of allocating money for science and research has been criticised not only by AV ČR but also by the Czech Rectors’ Conference (Česká konference rektorů, ČKR) and the Council of Higher Education Institutions (Rada vysokých škol, Rada VŠ), although universities have not yet been affected by the budget cuts.
Jaroslav Hála, Research Institute for Labour and Social Affairs (RILSA)