News

Statement of the management of the Economics Institute of the Czech Academy of Sciences on Cuts to Research and Development Funding in the Czech Republic

19 December, 2025

The management of the Economics Institute of the Czech Academy of Sciences aligns itself with the resolution of the Academic Assembly of the Czech Academy of Sciences and the Czech Science Foundation and expresses its deep concern regarding the ongoing cuts to research and development funding in the Czech Republic.

These cuts come on top of an already significant long-term decline in the share of state budget expenditures on research, development, and innovation relative to GDP.

This trend fundamentally undermines the stability of the research environment and the ability of institutions to plan their activities over the long term. The recent period of high inflation has further deepened the real underfunding of research institutions, which are facing rising costs amid declining institutional support. At the same time, investment in science and research, including basic research, yields long-term returns for the entire economy—contributing to higher productivity, innovation, better public policies, and sustained economic growth. Reducing funding therefore does not constitute a saving, but rather represents a loss of the Czech Republic’s future potential.

As a result of these cuts, activities focused on the evaluation of public policies are also at risk, including the work of the IDEA think tank within our institute. These analyses provide the government, local authorities, and the wider public with essential evidence for the effective formulation of economic, educational, and social policies. Insufficient funding also hinders the development of key disciplines that are currently missing or underrepresented in the Czech Republic, such as health economics, international trade economics, and environmental economics—fields that are crucial for addressing current and future societal challenges.

The Economics Institute of the Czech Academy of Sciences has long been actively involved in providing expert support for the country’s economic policy. It has contributed to the work of all National Economic Councils of the Government (NERV) to date, as well as to expert commissions on pension reform and other government advisory bodies. However, this role is unsustainable in the long term without adequate and stable support for research infrastructure and human capital.

The management of the Economics Institute of the Czech Academy of Sciences considers it essential that science receive stable and predictable funding. Only under such conditions can the Czech Republic develop the knowledge and innovations on which its future competitiveness depends, as well as its ability to address key societal challenges and improve the quality of life of its citizens.