Dear Ladies and Gentlemen, the South Moravian Region is one of the largest and strongest of the fourteen regions of the Czech Republic. In terms of GDP, it is the second richest region and its performance and economic position are mostly based on the economic power of Brno and its vicinity. The most important industries in South Moravia primarily include the manufacturing industry and services with high added value. The main specializations include the mechanical engineering, electrical engineering and electronics industries. It is very important that these industries are becoming increasingly interconnected (e.g. industrial automation and the supply of industrial facilities). A major portion of IT companies specialized in industrial software solutions. Dynamic IT innovations and their interconnection with traditional specialization in mechanical and electrical engineering create a favourable environment for the development of modern technologies and knowledge-intensive businesses. As far as major research organizations are concerned, the South Moravian Region is the second most important in the Czech Republic, largely due to the dense concentration of higher education institutions in Brno and the eight institutes of the Academy of Sciences of the Czech Republic. The number of companies engaging in research and development has been increasing, which makes South Moravia the most successful region in the country in this regard. Out of the total business expenses spent on science and research, which amounts to CZK 6.2 billion, the key industries account for two-thirds, namely the electrical engineering, electronics, mechanical engineering and IT industries. These include both domestic companies (e.g. Alta, Zetor and Tescan) and foreign businesses (Honeywell, FEI, ABB, etc.). The Czech economy as a whole is thriving mainly thanks to the business activities of foreign companies. Outside of Prague, the South Moravian Region is the main target region for foreign investors. Four technology incubators have opened in the area (Technology Incubator II, INBIT, INMEC and INTEMAC); innovative companies operating in South Moravia include Y Soft Corporation, Webnode, GINA Software, INVEA-TECH, Phonexia and others. The South Moravian Region has a long-term strategic plan to increase its competitiveness – the Regional Innovation Strategy. Specific projects derived from the strategy are bringing first-rate scientists to the region, helping researchers to collaborate with companies, supporting talented students and ambitious innovative companies, initiating international cooperation and attracting foreign technology companies to the region. The objective is for the South Moravian Region to become one of the most innovative regions of the European Union.