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.

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.

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.

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.