Czech Republic plans industrial institute merger and startup fund

The Czech government is pursuing two major initiatives to reform the country's industrial and innovation landscape. The Ministry of Industry and Trade has proposed merging six state testing institutes into a single entity named the Czech National Testing Institute. This consolidation, modeled after Sweden’s Research Institutes of Sweden (RISE), aims to eliminate duplicate agendas, increase efficiency, and provide a single point of contact for companies seeking testing and certification services. The merger is expected to be legally effective by the end of 2027.

In a separate move, the government is discussing the creation of a CZK 1 billion Venture Fund to support innovative startups. Rather than funding individual businesses directly, the initiative would operate as a ‘fund of funds,’ where the state provides up to 30 percent of the capital for several privately managed venture capital funds. Managed by a subsidiary of the National Development Bank, the fund aims to attract private capital and develop the domestic venture capital market. While business organizations support the proposal, some have expressed concerns regarding the lack of financing for more established companies.