NEW WAYS TO INNOVATION FINANCING FROM PUBLIC RESOURCES IN THE CZECH REPUBLIC

The paper deals with new approaches to innovation financing in the Czech Republic. Inasmuch SMEs are considered the key driving force of the Czech economy the government places emphasis on the development of financial instruments which would ensure an ongoing financial support of innovation. The Ministry of Industry of the Czech Republic followed up on the Europe 2020's strategy in terms of "mobilising the financial instruments" and executed several programmes aimed at innovative financing for SMEs. These programmes differ in their nature, such as subordinate bank loans provided by the state owned banks, goal-directed subsidies provided through the government institutions. Moreover, the Czech government arranges financial support for institutions which is provided through the EU and national budget. The paper evaluates pros and cons of various types of government financial subsidies with respect to payback periods.