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Karlovy Vary

CZ041

Karlovy Vary (CZ041) is a NUTS 3 region in the western part of the Czech Republic. Together with the NUTS 2 region of Ústí nad Labem, it forms the NUTS 2 region of Severozápad. With an area of 3,310 km², it is the smallest region in the Czech Republic and shares a 232-km-long border with Germany. The region is named after its capital, Karlovy Vary (Karlsbad), a world-famous spa town. Historically, the area belonged to Bohemia and was settled by German settlers in the Middle Ages, which led to a multicultural character. Traditionally, the region’s economic development was based on mining, glassmaking, porcelain production and spa tourism. After 1945, extensive population changes occurred due to the expulsion of the German population. The socialist period brought intensive industrialisation and mining. Since 1989, the region has been undergoing an economic transformation process with efforts towards diversification and sustainable development.

General population structure

The population of the Karlovy Vary Region is approximately 285,000 (as of 2024), which is about 2.7% of the total population of the Czech Republic. With a population density of 86 inhabitants per km², it is one of the most sparsely populated regions in the country. The region is experiencing a continuous population decline; in the last ten years, the population has decreased by about 5%. The birth rate is below the national average at 1.51 children per woman, while the death rate is above average. The average age is 43.6 years and is steadily increasing – a sign of the progressive ageing of the population. Life expectancy is below the national average at 76 years. The leaving of young, well-educated people to economically stronger regions such as Prague is particularly problematic. Forecasts indicate a further population decline of up to 10% by 2040, which poses significant challenges for regional development.

Education

The education system in Karlovy Vary focuses on practical qualifications that meet the regional economic needs. The region offers various vocational and technical schools with a focus on tourism, hotel management, glass production and healthcare. Higher education is limited, with a branch of the University of West Bohemia in Cheb and the Business Academy in Karlovy Vary. At 8.7%, the tertiary education rate is well below the EU average, which highlights the need for higher education expansion. There is an increasing focus on lifelong learning, particularly in the areas of digitalisation, foreign languages and tourism services. Gender disparities are evident in the underrepresentation of men in pedagogical professions and women in technical fields. Regional education initiatives aim to promote STEM subjects and improve language skills in order to strengthen international competitiveness and combat the shortage of skilled workers.

Economic structure

The economy of the Karlovy Vary region has traditionally been characterised by mining, glassmaking, porcelain production and tourism. After the decline of mining activities and traditional industries, the region has increasingly focused on services, particularly in the tourism and events sector. With a contribution of about 1.9% to the national GDP, Karlovy Vary is the economically weakest region in the Czech Republic. The GDP per capita is only 70% of the national average. The unemployment rate of 3.7% (2023) is low by European standards, but higher than the Czech average. The regional labour market is characterised by seasonality in tourism and a lack of highly skilled workers. The economic structure is dominated by SMEs, which make up 99.1% of all companies and are mainly active in the service sector. Larger companies exist in food processing, mechanical engineering and the automotive supply industry. Economic resilience requires further diversification and the promotion of innovation.

Skilled crafts manufacturing

The production sector in Karlovy Vary is characterised by traditional craftsmanship and medium-sized manufacturing companies. The region is internationally known for its glass manufacturing (Moser), porcelain production (Thun) and mineral water bottling (Mattoni). These industries employ about 28% of the workforce and preserve centuries-old traditions. However, the manufacturing sector faces challenges from global competition, rising energy costs and a shortage of skilled workers. Many companies are struggling with the modernisation of their production methods and digitalisation. At the same time, new opportunities are arising from the integration of sustainable practices and innovative design approaches. The automotive supply industry is gaining in importance, benefiting from its proximity to German carmakers. Regional development strategies aim to promote innovation in production, further training for skilled workers and strengthening the links between craft traditions and modern design to create competitive advantages.

Creative industries and innovation

The creative industries in Karlovy Vary include traditional arts and crafts, film production, design and cultural activities. The International Film Festival Karlovy Vary, one of the oldest and most prestigious film festivals in Europe, is particularly outstanding. Although smaller than in Prague, the creative industries contribute around 3.2% to regional value added. The region actively promotes creative start-ups and the digitalisation of traditional craft businesses. There is a growing focus on combining tradition and innovation, particularly in glass and porcelain production, where modern design concepts are being integrated. Innovative approaches are also being developed in health tourism to modernise the traditional spa offering. The regional innovation policy aims to create creative hubs, support digital platforms and promote cross-sectoral collaboration between the creative industries, tourism and manufacturing.

Innovation RIS3 strategy

The Karlovy Vary RIS3 strategy focuses on sustainable development, regional specialisation and the revitalisation of the local economy through innovation.

  1. Modernising traditional sectors: digitalisation and sustainable practices in the glass, porcelain and beverage industries to increase competitiveness.
  2. Developing health tourism: innovation in the spa industry by combining traditional balneology with modern wellness and health concepts.
  3. Promoting the creative and cultural industries: strengthening the film festival and cultural activities as economic factors.
  4. Improving the education infrastructure: developing specialised courses of study and research institutions in collaboration with companies.
  5. Developing green technologies: promoting renewable energies and environmentally friendly production processes.
  6. Intensifying cross-border cooperation: taking advantage of the proximity to Germany for joint innovation and economic projects.
  7. Expand digital infrastructure: improve digital connectivity in rural areas.

Current challenges and prospects

The Karlovy Vary region faces a number of challenges: demographic change with population decline and an ageing population, below-average education levels, a low investment rate and limited innovative strength. In particular, the lack of highly qualified workers and the leaving of young people endanger economic development. The structural change from mining and traditional industries to a modern service and knowledge economy requires ongoing support. At the same time, promising prospects are emerging from the further development of health tourism, the combination of traditional craftsmanship with modern design and the promotion of sustainable technologies. The cross-border location opens up opportunities for increased cooperation with German partners. EU funding, particularly under the Just Transition Fund, supports the transformation of the regional economy. The development of research and educational institutions, as well as the improvement of transport links, could make a decisive contribution to increasing the region’s attractiveness and competitiveness.

Experts survey

The x-Inno Radar experts survey was designed to be exploratory with participants from the networks of the respective project partners. Between 17 and 29 persons per region took part in this survey. In order to categorise the results of the x-Inno Radar expert survey, it is also important to know that the results in the 8 countries are partly attributable to different region sizes, depending on the geographical distribution of the participants. The NUTS3 region was surveyed as the smallest regional level. In some countries many participants are assigned to the same NUTS3 region, while in others the participants are scattered across several NUTS3 regions. Some participants only allocated themselves to the country and not to any NUTS2 or NUTS3 level.
In contrast, the regions described and Charts displayed in the web profiles refer to the NUTS2 level, which is due to access to comparable data.
Find more information about this survey in the corresponding survey report.

Simple survey

The x-Inno Radar simple survey was designed to be exploratory with participants from the networks of the respective project partners. Between 8 and 26 persons per region took part in this survey. In order to categorise the results of the x-Inno Radar expert survey, it is also important to know that the results in the 8 countries are partly attributable to different region sizes, depending on the geographical distribution of the participants. The NUTS3 region was surveyed as the smallest regional level. In some countries many participants are assigned to the same NUTS3 region, while in others the participants are scattered across several NUTS3 regions. Some participants only allocated themselves to the country and not to any NUTS2 or NUTS3 level.
In contrast, the regions described and Charts displayed in the web profiles refer to the NUTS2 level, which is due to access to comparable data.
Find more information about this survey in the corresponding survey report.

  • https://www.czso.cz/csu/xk/home
  • https://www.kr-karlovarsky.cz/Stranky/Default.aspx
  • https://ec.europa.eu/eurostat/web/regions/data/database
  • https://www.interreg-central.eu/Content.Node/RIS3-in-reverted-peripheral-areas.html
  • https://www.euregio-egrensis.org/
  • https://www.moser-glass.com/
  • https://www.thun.cz/
  • https://www.mattoni.cz/
  • https://www.kviff.com/
  • https://www.justtransitionfund.eu/
  • https://www.ris3kvk.cz/
  • https://en.wikipedia.org/wiki/Karlovy_Vary_Region
  • https://ris3.kr-karlovarsky.cz/
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