Karel Havlíček, Member of Parliament and former Deputy Prime Minister, took the stage at Innovations United 2025 to outline a bold, actionable strategy to supercharge the Czech Republic’s startup ecosystem. Speaking in person to a packed audience at Prague Castle, his message was clear: it’s time to rewrite the rules of innovation.
“In the Czech Republic, startups generate 5% of GDP and employ 150,000 people. If we want to accelerate, we must change the rules.”
The Three Rules for Startup Acceleration
1. Motivate Young People to Start
Havlíček proposed a zero-administration, zero-tax environment for the first three years of a startup’s life. This includes reduced fees and simplified bureaucracy, designed to allow founders to focus on product and growth rather than red tape.
He also emphasized the importance of results-driven startup hubs and incubators, which should receive support based on outcomes, not volume.
2. Attract Talent to Work for Startups
To make startups more attractive to top talent, Havlíček stressed the need for a startup-friendly ESOP system (Employee Stock Ownership Plan). The goal: make equity a benefit, not a bureaucratic nightmare.
“If you offer equity to your team, it should be a dream, not a burden.”
3. Incentivize Investors
Investment needs oxygen. That means tax deductions instead of subsidies, and a public policy shift to create an open “playground” for investors and startups to connect. Havlíček argued that government should set the table—not run the show.
“The state must create the environment. Today, you are that environment.”
A Policy in Motion
What set Havlíček’s remarks apart was their pragmatic tone and policy-ready grounding. These aren’t just ideas: they’re under active discussion as part of the Czech Republic’s upcoming economic strategy overhaul.
His appreciation for the startup community was unmistakable:
“Thank you to all the innovators here. Your insights are shaping the policies we write.”
Final Word
Karel Havlíček delivered more than a speech. He presented a blueprint for change—where startups are empowered, talent is retained, and capital is welcomed. With the right framework, the Czech Republic could become a central node in Europe’s innovation network.
