THE ELECTRONICS INDUSTRY OF CZECHOSLOVAKIA

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01141A002200010001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 52
• Document Creation Date: December 27, 2016
• Document Release Date: August 29, 2013
• Sequence Number: 1
• Publication Date: October 1, 1961
• Content Type: REPORT

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Economic Intelligence Report
THE ELECTRONICS INDUSTRY
OF CZECHOSLOVAKIA
1948-65
CIA/RR ER 61-44
October 1961
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
N? 3
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SECRET
Economic Intelligence Report
THE ELECTRONICS INDUSTRY
OF CZECHOSLOVAKIA
199-8-65
CIA/RR ER 61-44
WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
SECRET
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A CONTENTS
Summary
Page
1
I.
Introduction
3
A.
Purpose and Scope
3
B.
Definition of the Electronics Industry
3
II.
Organization of the Electronics Industry
4
III.
Production
7
A.
Total Output
7
B.
Composition of the Industry
1. General
9
2. Consumer Electronics
11
3. Industrial Electronics
13
4. Military Electronics
16
5. Electron Tubes, Semiconductors, and Electronic
Components
17
IV.
Technology
20
A.
Status and Trends
20
B.
Research and Development
22
C.
Labor Productivity
25
V.
Trade
27
A.
Volume Of Trade
27
1. Exports
27
2. Imports
29
B.
Pattern of Trade
30
1. General
30
2. Export Pattern
30
a. Industrial Electronics
b. Electronic Components, Electron Tubes,
and Semiconductors
30
31
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c. Consumer Electronics 31
d. Military Electronics 31
3. Import Pattern 32
a. Industrial Electronics 32
b. Electronic Components, Electron Tubes, and
Semiconductors 33
c. Consumer Electronics . . . - 33
d. Military Electronics 33
Appendix A. Methodology
Appendixes
35
Tables
1. Czechoslovakia: Estimated Net Value of Production of
Electronics, by Sector of End Use, 1948-65 8
2. Czechoslovakia: Estimated Production of Consumer
Electronics, 1948-65 12
3. Czechoslovakia: Estimated Production of Industrial
Electronics, 1948-65 14.
4. Czechoslovakia: Estimated Production of Electron
Tubes, Semiconductors, and Electronic Components,
1948-65 18
5. Czechoslovakia: Estimated Labor Force and Labor
Productivity in the Electronics,Industry 1948-65 26
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Charts
?
Page
Figure 1. Organization of the Electronics Industry
in Czechoslovakia, 1960 following page
Figure 2. Estimated Net Value of Production of Electronics
in Czechoslovakia, 1955-65 9
Figure 3. Estimated Distribution of Production of Elec-
tronics in Czechoslovakia, by Sector of End Use,
1955, 1960, and 1965 10
Figure 4. Estimated Expenditures for Research and Develop-
ment of Electronics in Czechoslovakia, 1958
and 1965 23
Figure 5. Estimated Labor Force and Labor Productivity in
the Electronics Industry of Czechoslovakia,
1955-65
25
Figure 6. Estimated Exports of Electronics from Czechoslo-
vakia, 1952-65 28
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THE ELECTRONICS INDUSTRY OF CZECHOSLOVAKIA*
1948-65
Summary
The estimated net Value** of production of electronic equipment in
Czechoslovakia in 1960 was about 2,780 million crowns,*** or about $230
million,t an amount greater than that of any other European Satellite and
probably also greater than that of Communist China, but only about 4
percent of that of the USSR,. More than 4o percent of the value of the
Czechoslovak production is estimated to have represented military elec-
tronics (mostly wire communications equipment), and about one-third is
estimated to have represented consumer electronics, which were pri-
marily television broadcast receivers. The remainder, about one-fourth
of the total production, is estimated to have been made up of industrial
electronics, which also was dominated by wire communications equipment.
Current projections indicate that, by 1965, industrial electronics will
constitute the largest category of production, followed by consumer
electronics and military electronics in that order.
The estimated net value of production of electronic equipment in
Czechoslovakia increased about 85 percent during First Five Year Plan
,(1951-55) but increased more than 300 percent during the Second Five Year
Plan (1956-60). A further increase of about 55 percent is expected during
the Third Five Year Plan (1961-65). Relatively large investments made
in the industry since 1955 facilitated the rapid expansion that took
place during the Second Five Year Plan. Labor productivity also rose
rapidly during 1956-60 and will become a greater factor in the expansion
of production than additions to the labor force during the Third Five
Year Plan.
i( The estimates and conclusions in this report represent the best
judgment of this Office as of 1 September 1961.
** For an explanation of the use of the term net with reference to
production of electronic equipment, see Appendix A.
*** After computation, data on values and index numbers have been
rounded to three significant digits or less, and data on units,
have 'been rounded to two significant digits.
values in this report were derived from crown values in
t Dollar
1957 prices and were converted at the rate of 12 crowns to US $1 (for
the methodology, see Appendix A, Section 4, p. 44, below).
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The variety of electronic equipment produced in Czechoslovakia is
comprehensive, and the quality is generally good in comparison with
world standards. Relatively large investments in research and develop-
ment -- about 250 million crowns ($21 million) in 1958 -- are expected
to enhance further the quality of Czechoslovak electronic equipment,
to expand the variety, and to help reduce the costs of production. A
-major objective of the research and development effort is to design
electronic equipment that will utilize semiconductors and printed
circuits and that will be compatible with the automation of production.
A recent decentralization of the management of the electronics
industry of Czechoslovakia is expected to result also in reduced costs,
and, in addition, to facilitate a reduction of the lead time required
to introduce newly developed items into production. Since the fall of
1958 the electronics industry of Czechoslovakia has been subordinate
to the Ministry of General Machine Building. Under the general direc-
tion of this ministry are the Association of Telecommunications Enter-
prises, six electronic branch enterprises, and one research institute,
all of which are financially autonomous in production and marketing of
electronic equipment. These organizations are responsible for most of
the electronic equipment produced in Czechoslovakia, although some
products defined as electronic in this report, notably electronic com-
puters and measuring instruments, are produced under the management
of the instrument engineering industry, another industry also subor-
dinate to the Ministry of General Machine Building.
Exports of electronic equipment by Czechoslovakia have averaged about
15 percent of the net value of production during 1955-60. Imports have
been substantially less during the same period. Consumer and industrial
electronics have been exported widely to countries both inside and out-
side the Sino-Soviet Bloc, and military electronics have been exported
to a few underdeveloped countries outside the Bloc. Present plans
provide for exports to increase more rapidly than the total production
during the Third Five Year Plan. Imports of electronic equipment probably
will continue to lag well behind exports.
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I. Introduction
A. Purpose and Scope
This report is intended primarily to present estimates of the
magnitude, composition, and growth of production of the electronics
industry of Czechoslovakia from 1948 to 1960 and to project the future
growth of production through 1965. The secondary objectives are to
summarize current trends in the organizational structure, the technology
of production, and the trade patterns of the industry.
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B. Definition of the Electronics Industry 50X1
In this report, as in previous reports on the electronics in-
dustries of the countries of the Sino-Soviet Bloc, the electronics
industry is defined in terms of the products included in the electronics
industry of the US. These products are (1) electronic components,
primarily resistors, capacitors, and coils; (2) electron tubes; (3) semi-
conductors, including transistors, diodes, and rectifiers; (4) wire
communications equipment, including telephone and telegraph apparatus;
(5) radio communications equipment, primarily point-to-point radio
transmitters and receivers, radio and television broadcast transmitters,
and microwave relay equipment; (6) consumer electronic equipment, in-
cluding radio and television broadcast receivers, wired loud spea4ers?
tape recorders, and phonographs; (7) noncommunications electronic equip-
ment, including electronic computers, electronic measuring instruments,
radar, sonar, navigational aids, electronic countermeasures equipment,
infrared and ultraviolet equipment, proximity fuzes, and miscellaneous
medical and industrial, equipment using sonic, ultrasonic, and electro-
magnetic energy.
In the generic sense, electronic equipment can be defined
approximately as devices that utilize the movement of electrons through
conducting or semiconducting materials and/or propagate the radiation
of electromagnetic energy, ultrasonic energy, or sonic energy throuel
some conducting medium for purposes of communicating intelligence, con-
trolling some function, or performing some physical task directly.
For convenience, electronic equipment* in this report is grouped
in three categories determined by the end use of the equipment. These
categories are (1) consumer electronics, primarily radio and television
broadcast receivers; (2) industrial electronics, primarily radio and
* The terms electronic equipment and electronics are used interchangeably
throughout this report.
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television broadcast transmitters, measuring instruments, civil wire
and radio communications equipment, microwave equipment, and miscel-
laneous medical and industrial equipment; and (3) military electronics,
primarily radar, radio communications equipment, and wire communica-
tions equipment.
II. Organization of the Electronics Industry 1/*
Since the fall of 1958 the electronics industry of Czechoslovakia
has been subordinate to the Ministry of General Machine Building.
Under the direction of this ministry are an organization known as the
Association of Telecommunications Enterprises, six electronic branch
enterprises, and one research institute. These organizations are
responsible for producing most of the electronic equipment, although
some products defined as being electronic in this report are produced
under the management of the instrument engineering industry, as shown
in the chart, Figure 1.**
The Association of Telecommunications Enterprises was created in
order to coordinate production, marketing, and utilization of tele-
communications products, particularly electronic equipment used as
producers goods for the Ministries of Communications, Transportation,
and Foreign Trade, and military equipment for the Ministry of Defense.
The Association also directs joint units for research, development,
planning, and bidding and is specifically responsible for marketing
and supply, development of the production base in accordance with
the plan, research and development, organizational development, tech-
nological development, direction of production, and training of:
employees. The Association has the primary responsibility for pro-
ducing wire telecommunications equipment, including such items as
switching equipment 'for telephone exchanges, switchboards, telephone
handsets, teletype equipment, and special equipment for dispatching
and for use in mines.
The six electronic branch enterprises and their primary products
are as follows:
1. . The electron tube and semiconductor branch, the Tesla
National Enterprise in Roznov pod Radhostem. Primary products are
electron tubes and semiconductors (transistors, diodes, and recti-
fiers).
2. The electronic component parts branch,.the Tesla National
Enterprise' in Lanskroun. Primary products are electronic components
** Following p. 4.
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Figure 1
ORGANIZATION OF THE ELECTRONICS INDUSTRY IN CZECHOSLOVAKIA, 1960
MINISTRY OF GENERAL
MACHINE BUILDING
ILLUMINATION SOURCES
BRANCH, TESLA
NATIONAL ENTERPRISES
IN HOLEgOVICE
ASSOCIATION OF
TELECOMMUNICATIONS
ENTERPRISES
A. S. POPOV
RESEARCH INSTITUTE
FOR
COMMUNICATIONS
ENGINEERING
ELECTRON TUBE
AND SEMICONDUCTOR
BRANCH, TESLA
NATIONAL ENTERPRISE
IN ROZNOV POD
RADHOgTEM
ELECTRONIC
COMPONENT PARTS
BRANCH, TESLA
NATIONAL ENTERPRISE
IN LANkROUN
VACUUM ELECTRICAL
ENGINEERING BRANCH
TESLA NATIONAL
ENTERPRISE
IN PARDUBICE
LIGHT RADIO
ENGINEERING BRANCH
TESLA NATIONAL
ENTERPRISE
IN BRATISLAVA
HEAVY OR INVESTMENT
RADIO ENGINEERING
BRANCH, TESLA
NATIONAL ENTERPRISE
IN HLOUELETIN
35413 9.61
ELECTRONICS
MEASURING
INSTRUMENTS BRANCH
TESLA NATIONAL
ENTERPRISE IN BRNO
KitliIK NATIONAL
ENTERPRISE IN KOLIN
(MEASURING AND
AUTOMATION
INSTRUMENTS)*
ARETMA
NATIONAL ENTERPRISE
IN VOLOVICE
(PUNCHED CARD
MACHINES)*
CHIRANA NATIONAL
ENTERPRISE IN PRAGUE
(MEDICAL EQUIPMENT)*
INDUSTRIAL
AUTOMATION PLANTS
NATIONAL ENTERPRISE
IN StATCHOV
(AUTOMATION
EQUIPMENT)*
RESEARCH INSTITUTE
FOR ELECTROTECHNICAL
CERAMICS IN HRADEC
KRALOVE
Electronics Industry as defined in Czechoslovakia
Electronics Industry as defined in the US
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*Not all products are electronic equipment.
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(resistors, capacitors, coils, and the like) and probably dry-cell
batteries produced by the Bateria National Enterprise in Slany, which
was transferred to Tesla Lanskroun from the Ministry of Agricultural
Machinery and Automobiles in the fall of 1958.
3. The vacuum electrical engineering branch, the Tesla
National Enterprise in Pardubice. Primary products are radio commu-
nications equipment (typically point-to-point radio communications
equipment), television broadcast receivers, electronic analog com-
puters, and radar equipment:
4. The light radio engineering branch, the Tesla National
Enterprise in Bratislava. Primary products are radiobroadcast re-
ceivers, television broadcast receivers, phonographs, wire radio sys-
tems, loudspeakers, tape recorders, microphones, intercommunications
systems, hearing aids, and commercial amplifiers.
5. The heavy or investment radio engineering branch, the
Tesla National Enterprise in Hloubetin. Primary products are radio
and television broadcast transmitters with antenna systems, broadcast
studio equipment, radio communications equipment (probably microwave
systems), industrial television equipment, radio receivers for long-
distance communications, amplifiers for wire radio systems, and radar.
The branch in Hloubetin also probably produces electronic counter-,
measures, infrared devices, direction-finding equipment, ultrasonic
equipment, and proximity fuzes.
6. The illumination sources branch, the Tesla National Enter-
prise in HOlesovice. Primary products are light bulbs, fluorescent
tubes, infrared drying bulbs, glow-discharge tubes, and medical lamps.
The Association of Telecommunications Enterprises and the elec-
tronic .branch enterprises, except the illumination sources branch in
Holesovice and the primary batteries produced under Tesla Lanskroun,
are included under the definition of the electronics industry (see I,
B*). Under this definition, the electronic measuring instruments
branch -- that is, the. Tesla National Enterprise in Brno also must
be included. Primary products of this branch are conventional elec-
tronic measuring instruments of all types and electron microscopes.
The Tesla National Enterprise in Brno was transferred in the fall of
1958 from the electronics industry to the instrument engineering
in-
dustry, which also is subordinate to the Ministry of General Machine
Building.
* P.
above.
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Other organizations that produce some items defined as electronic
in this report are conceptually included in the electronics industry
of Czechoslovakia, although the Czechoslovak authorities do not con-
sider them as part of the electronics industry. These organizations
are as follows:
1. Aritma National Enterprise in Vokovice. Products are
punched-card coders, verifiers and sorters, printout machines for
punch-coded cards, electromechanical calculators, and analog computers.
2. Krizik National Enterprise in Kolin. Products are measur-
ing and automation instruments, some df which involve electronic de-
vices.
3. Chirana National Enterprise in Prague.- Products are
medical equipment, some of which involve electronic devices such as
X-ray apparatus.
-4.? Industrial Automation Plants National Enterprise in -Smichov.
Products are automation equipment of all types, some of which involve
electronic devices.
5. Research Institute for Electrotechnical Ceramics in Hradec
Krolove. Among its products are quartz crystals for high-frequency
and ultrasonic applications.
In this report the Metra National Enterprise in Blansko is excluded
from consideration of the electronics industry of Czechoslovakia be-
cause it produces only electrical measuring instruments.
The electronics industry of Czechoslovakia is believed to consist
of about 50 Major plants and a few minor plants, most of which are now
included in the Tesla National. Enterprises. Each of the Tesla National
Enterprises consists of several manufacturing plants, and the manage- .
ment of the main plant of each enterprise directs the operations of
the other plants. Each enterprise operates independently-to carry out
its responsibility, for fulfillment of the plan for the national economy
in terms of quality, quantity, and assortment ofproducts. The enter-
prise is required to provide for its own expenses from its sales, but
each plant of an enterprise does not. necessarily cover its costs from
its sales -- that is, high-cost plants may have losses that are covered
by the more efficient plants. Each plant does have the authority to.
conclude economic contracts with third parties independently of the
management of the enterprise.
The present research institute for electronics was established in
1958 by the merger of the Research Institute for Electrical Engineering
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Physics (VyzkumnyUstav pro Elektrotechnickou Fysiku) with the A.S. Popov
Research Institute for Communications Engineering (VyzkumnyUstav pro
Sdelovace Techniku A.S. Popova) and was given the name of the latter.
At the same time, minor research and development centers were trans-
ferred to the branch enterprises.
The Institute of Mathematical Machines (Ustav Matematickych Strojci),
formerly of the Czechoslovak Academy of Sciences, was transferred from
the electronics industry to the instrument engineering industry in the
fall of 1958. It provides the research base for the new mathematical
machines branch of the instrument engineering industry, products of
which in all probability include electronic digital computers.
III. Production
A. Total Output
Statistical series showing the magnitude and growth of the
electronics industry of Czechoslovakia are given in Table 1.* At
present the electronics industry of Czechoslovakia is estimated to
be the largest of the European Satellites and probably larger than
that of Communist China. Thus Czechoslovakia is second only to the
USSR among the countries of the Sino-Soviet Bloc in the value of pro-
duction of electronicsl-although in 1960 the Czechoslovak industry
produced electronic equipment valued at approximately $230 million,
or only about 4 percent as much as did the USSR (see the accompanying
chart, Figure 2**).
The electronics industry of Czechoslovakia grew slowly during
the immediate postwar years. By 1950, however, the pace was accel-
erated, and production increased about 85 percent in the 5 years from
1951 to 1955. During the Second Five Year Plan (1956-60), unprece-
dentedly large investments were made in the industry.*** As a result
of the increased level of investment during the Second Five Year Plan,
the floorspace of manufacturing plants increased 50 percent, the pro-
ductive capacity per unit of floorspace increased 160 percent, and
the net value of production rose by 1960 to a level estimated at four
times that of 1955. 2/
During the Third Five Year Plan (1961-65) the rate of growth
of the electronics industry will be much less than that achieved during
the preceding 5 years, but production is expected to increase about
Table 1 follows on p. 8.
** Following on p. 9.
*** Annual gross investment is expected to average about 150 million
crowns per year during 1956-65. 2/
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Table 1
Czechoslovakia: Estimated Net Value of Production of Electronics
by Sector of End Use
1948-65
Consumer electronics
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
Index (1955 = 100)
118
118
130
128
loo
114
92
loo
202
286
393
486
588
643
691
757
833
901
Value (million 1957
crowns)
184
184
202
200
156
177
143
156
315
445
612
756
915
1,000
1,080
1,180
1,300
1,400
Industrial electronics
Index (1955 = 100)
30
41
49
61
71
78
86
loo
113
135
156
181
218
270
340
430
542
686
Value (million 1957
crowns)
91
124
148
186
216
238
263
304
345
410
476
552
663
822
1,040
1,310
1,650
2,090
Military electronics
Index (1955 = 100)
4
8
8
13
44
52
87
loo
137
241
297
401
528
549
562
542
478
364
Value (million 1957
crowns)
10
19
19
30
100
118
197
226
309
545
670
905
1,200
1,250
1,270
1,220
1,080
822
Total electronics
Index (1955 = 100)
42
48
54
61
69
78
88
100
141
204
256
323
405
? 447
493
541
587
628
Value (million
1957 crowns)
285
327
368
416
472
533
603
686
969
400
1,760
2 210
2,780
3,070
3,380
3,710
4,030
4,310
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5,000
4,000
3,000
cy,
oc
3-2- 2,000
1,000
0
1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965
Figure 2: Estimated Net Value of Production of Electronics in Czechoslovakia, 1955-65.
Net of electron tubes, semiconductors, ond electronic components
35414 9-61
55 percent. Because the absolute increase in value of production in
1965 above that of 1960 is estimated to be less than the absolute
increase in 1960 above that of 1955, the implication is that the rate
of investment in the industry will decline significantly during the
Third Five Year Plan.
B. Composition of the Industry
1. General
According to end use of the equipment produced, the elec-
tronics industry of Czechoslovakia is divided into three major sectors:
(a) consumer electronics, (b) industrial electronics, and (c) mili-
tary electronics.* The relative sizes and rates of growth of these
sectors ?on the basis of the data shown in Table 1** are compared
below. Discussions on electron tubes, semiconductors, and electronic
For definitions of these sectors, see I, p. 3, above.
** P. 8, above.
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components also will be presented, although these items are not end
products, and their value is already included in the sectors of end
use.
Of the total net value of electronic produced during 1960
In Czechoslovakia, about 33 percent was allocated to consumer elec-
tronics, almost 24 percent to industrial electronics, and about 43 per-
cent to military electronics. It is estimated that by 1965, however,
the sector devoted to industrial electronics will be dominant, with
about 48 percent of the total output of electronics, followed by con-
sumer electronics with almost 33 percent and military electronics with
only 19 percent (see the accompanying chart, Figure 3).
Consumer Electronics
Military Electronics
Industrial Electronics
1965
Figure 3: Estimated Distribution of Production of Electronics in Czechoslovakia
by Sector of End Use, 1955, 1960, and 1965.
Through 1951 the consumer electronics sector comprised
from nearly one-half to nearly two-thirds of the industry. In almost
every year between 1952 and 1965 this sector was estimated to comprise
about one-third of the total net output of electronics in Czechoslovakia,
except in 1954 and 1955, when consumer electronics dropped to less
than one-fourth of the total.
By 1951 the industrial electronics sector was nearly as
large as the consumer electronics sector. From 1952 until 1956 the
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share of the industrial electronics sector was somewhat larger than
either of the other two sectors, comprising about 44 percent of the
total in 1955. Industrial electronics reached its lowest relative
share in 1960 -- about 24 percent -- but will again become the largest
sector during 1963-65.
Military electronics was less than 10 percent of the total
net production of electronics before 1951. By 1957) however, the mili-
tary electronics sector had become dominant and probably will remain so
until 1963, when it is expected to give way to Industrial electronics.
During 1951-55, production of consumer electronics declined
about 23 percent, but production of industrial electronics doubled dur-
ing the same period, and military electronics, starting from a very
small base, was 12 times as large in 1955 as in 1950. In the Second
Five Year Plan, consumer electronics increased to nearly six times the
level of 1955, industrial electronics more than doubled, and military
electronics increased to more than five times the level of 1955. It
is estimated that consumer electronics will increase about 50 percent
during the Third Five Year Plan. Industrial electronics will more
than triple, whereas military electronics will actually decrease by
almost one-third.
1 2. Consumer Electronics
Production of consumer electronics in Czechoslovakia is
shown by major commodities in Table 2.* Until 1952, radiobroadcast
receivers were the only item of consumer electronics in production.
It is apparent, however, that by 1957 production of television broad-
cast receivers (television sets), which began in 1953, was dominant
and continues to increase its dominance throughout the period of the
estimate. Production of television sets in 1965 will be more than
double that in 1959.
Production of radiobroadcast receivers in 1950 reached a
peak that has been exceeded only in 1958 but may be exceeded again by
1963. The precipitous drop in production of radiobroadcast receivers
during 1952-55 appears to have been due primarily to the initiation
of production of television sets) although the rapid increase of pro-
duction of military electronics during this period also may have im-
pinged on production of radiobroadcast receivers.
The doubling of production of consumer electronics in 1956
above that of 1955 appears to have been facilitated primarily by a
large increase in production of electron tubes in Czechoslovakia. Other
* Table 2 follows on p. 12.
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Table 2
CzechoslOVakia: Estimated Production of Consumer Electronics
1948-65
Radiobroadcast receivers
1948
1949
1950
1951
/952
1953
:1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
Units (thousand)
267.7
266.5
292.6
288.3
208.0
182.5
109.5
102.3
220.6
255.0
309.0
280.5
248.9
260
280
300
310
330
Value (million 1957 crowns)
169
169
185
182
132
116
69
65
140
161
196
178
158
160
180
190
200
210
Television broadcast
receivers
-
Units (thousand)
0
0
0
0
0
12.3
15.0
17.2
' 40.1
79.1
133.5.
196.6
262.9
290
310
340
380
410
Value (million 1957 crowns)
0
0
0
0
0
31
37
43
100
198
333
491
656
, 720
770r
.850
950
1,020
Phonographs and tape re-
corders
Units (thousand) ?
0
b
0
0
10
20
27
26
54.1
60.2
50.2
43.8
40
42
45
48
50
53
Value (million 1957 crowns)
0
0
0
0
6
12
16
16
33
37
31
27
24
26
27
29
30
32
Wired loudspeakers
Units (thousand)
0
0
0
0
0
o
2.2
58.2
101.4
125.5
123.8
143.0
160
180
200
230
250
280
Value (million 1957 crowns)
0
0
0
0
0
0
Negl.
12
20
25
25
29
32
36
40
46
50
56
Replacement electron tubes
Receiving tubes
Units (thousand)
1,300
1,400
1,500
1,500
1,600
1,600
1,700
1,800
1,900
2,100
2,400
2,800
3,100
3,400
3,900
4,300
4,800
5,400
Television picture 'tubes
Units (thousand) .
o
o
o
o
o
o
o
0
o
o
3.4
37.
40
50
6o
60
70
Total value of replacement
tubes (million 1957 crowns)
15
15
16
17
18
19
20
22
24
32
44
49
56
64
70
79
Total value (million
1957 crowns)
184
184
202
200
156
143
156
315
445
612
756
915
1,000
1,080
1,180
1,300
1,400
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factors probably were the availability of new manufacturing facilities
and the.mastering of the technology of producing television sets. It
must be pointed out, however, that production of consumer electronics
in 1955 was about 23 percent below its former peak in 1950.
In 1960, production of television sets exceeded the plan,
but production of radiobroadcast receivers did not meet the plan goal. Lij
In spite of an apparent tendency toward deemphasis, production of
radiobroadcast receivers is formally scheduled to be at an all-time high
in 1965.
The electronics industry of Czechoslovakia is presently
manufacturing at least 26 different models of radiobroadcast receivers,
including battery-powered receivers, automobile receivers, large con-
soles, and transistorized receivers. Television sets are produced
presently in at least four models with picture tubes up to 21 inches,
with 12 channels, and with remote control. Other items of consumer
electronics are various combinations of phonographs and tape recorders
and wired loudspeakers. _51
By 1959, consumption of replacement tubes became and con-
tinues to be more important in terms of value than production of either
phonographs and tape recorders combined or of wired loudspeakers. Re-
placement tubes and components have been generally available for con-
sumer electronics in use.
3. Industrial Electronics
The estimated production of industrial electronics in
Czechoslovakia is shown in Table 3.* It is evident that production
of wire communications equipment is predominant throughout the series,
although estimates for the sector entitled "other" reflect a more
rapid increase from 1955 to 1965 because of heavy emphasis on elec-
tronic computers, measuring instruments, microwave equipment, and
equipment used in industrial processes. Czechoslovak authorities
maintain, however, that the most urgent requirement for enlarged pro-
ductive capacity during the Third Five Year Plan stems from the need
to produce more wire communications equipment. Several new plants as
well as expansions of older plants will be devoted to production of
wire communications equipment in order to satisfy domestic and export
requirements. lj
Czechoslovakia manufactures a wide range of wire communica-
tions equipment. The main groups of such equipment are automatic public
telephone exchanges; automatic railroad telephone exchanges; automatic
* Table 3 follows on p. 14.
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Table 3
Czechoslovakia!
Estimated Production of Industrial Electronics
1948-65
Radio and television broad-
cast transmitters
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
Index (1955 = 100)
12
38
50
75
88
88
88
100
100
112
125
138
150
162
188
212
238
275
Value (million 1957 crowns)
10
30
40
60
70
70
70
80
80
90
100
110
120
130
150
170
190
220
Wire communications equipment
Index (1955 = 100)
36
42
48
56
65
75
86
loo
115
134
155
179
219
267
326
398
486
594
Value (million 1957 crowns)
71
83
94
110
128
148
169
197
226
264
305
352
431
525
641
783
956
1,170
Other industrial electronics 2,/
Index (1955 = 100)
36
42
48
56
65
75
86
100
141
204
256
323
405
599
883
1,280
1,820
2,520
Value (million 1957 crowns)
10
12
13
16
18
21
24
28
39
57
71
90
113
167
245
356
506
701
Total industrial electronics
Index (1955 = 100)
30
41
49
61
71
78
86
loo
113
135
156
181
218
270
340
430
542
686
Value (million 1957
crowns)
21
124
148
186
216.
238
263
304
345
410
476
552
663
822
1,040
1,310
1,650
2,090
a. Other industrial electronics include electronic computers, electronic measuring instruments, point-to-point radio, punched-card machines,
electron microscopes, automation equipment, navigational devices, and microwave equipment for civilian use.
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branch telephone exchanges of any desired capacity; -telephone dispatch-
ing equipment for industrialplants and mines; telephone sets for a wide
range of uses, including watertight and gastight sets for mining- appli-
cation; carrier telephone equipment; high-frequency telephone equipment
operating on very high-tension lines for power generating and distribu-
tion systems; high-frequency equipment for industrial telemetering and
remote control; and teleprinter systems. Production of crossbar switch-
ing systems for telephone exchanges has recently been initiated. In
addition, some carrier telephone equipment has been transistorized
throughout, and printed circuits have been used. 18/
Czechoslovakia has long been a producer of long-wave,
medium-wave, and short-wave radiobroadcast transmitters, having both
amplitude modulation (AM) and frequency modulation (FM). More recently,
television broadcast transmitters were put into production. At present,
more than 30 types of radio and television broadcast transmitters are
produced for domestic consumption and for export. Present plans call
for production of color television broadcasting equipment by the end
of 1965. Color television cameras and receiving sets received from
the USSR were scheduled for closed-circuit testing in April 1961. 2/
Although Czechoslovakia claims to have reached "world
standards" in the design and development of electronic analog and
digital computers, series production apparently is limited at present
to a few types of analog computers. A few digital computers have
been custom-built by scientists for their own use in research organi-
zations. 12/ Several digital computers also have been imported from
the West and the USSR. Production of both analog and digital com-
puters, however, is expected to increase substantially during 1961-65.
One development peculiar to Czechoslovakia is a digital computer based
on miniature electromechanical relays rather than on electron tubes,
semiconductors, or magnetic elements. This computer has been publi-
cized extensively and reputedly will go into mass production during
the Third Five Year Plan. 11/
Czechoslovakia produces a complete line of punched-card
machines, which code, verify, sort, compute, and print out data used
in industrial and business establishments. These electromechanical
machines are reputed to be superior to similar Soviet machines and are
widely exported to countries both inside and outside the Bloc. It is
estimated that punched-card machines represent a significant part of
production of industrial electronics in Czechoslovakia. Furthermore,
completion of a large new plant, currently under construction in
Prague, will contribute to a substantial increase in production of
punched-card machines during the Third Five Year Plan. .1?,/
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Electronic measuring instruments produced in Czechoslovakia
represent an important segment of Czechoslovak industrial electronics.
The assortment is comprehensive and of good quality. In addition, plans
call for expanding production of electronic measuring instruments con-
siderably in the Third Five Year Plan through the enlarged capacity
provided by the recent completion of a new plant near Brno. Di
Another important product of Czechoslovak industrial elec-
tronics is the electron microscope, which has a good reputation inter-
nationally.111/ Large quantities of these microscopes have been pro-
duced for use in the scientific institutes of many countries both
inside and outside the Bloc as well as of Czechoslovakia itself.
Czechoslovakia produces radio relay (microwave) equipment
for fixed installations that is capable of providing up to 60 tele-
phone channels using multiplex frequency division or up to 24 tele-
phone channels using multiplex time sharing or, alternatively, one
television channel. Depending on the type of input, this equipment
can transmit inforMation satisfactorily up to 84o kilometers in 15
stages. Mobile microwave equipment for remote pickup in television
transmission also is produced, but microwave equipment with the greater
capacity required for the two-way transmission of television informa-
tion must be imported.
:A modest amount of industrial television equipment has
been produced since 1956. In addition, medical equipment and indus-
trial.automation equipment containing electronic components are pro-
duced, and such production is to be expanded rapidly during the Third
Five Year Plan. 116/
? 4. -,Military Electronics
Czechoslovakia produces a large assortment of military
electronic equipment, including radar, radio navigation devices,
radio jamming transmitters, microwave equipment, and wire communica-
tions equipment. Furthermore,
the Czechoslovak electronics industry apparently has been successful
in producing the military electronic equipment required of it, for
in May 1958 the minister of the former Ministry of Precision Machine
Building declared that "we must not fail to mention the successes in
the manufacture of special [that is, military] electronic devices." 11/
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Military radio equipment for both ground and air forces
is produced in Czechoslovakia. Since 1955, Czechoslovakia has con-
centrated mainly on production of the Soviet-designed R-series mili-
tary radios,** equipment that is used primarily by the ground forces. 21/
Other military electronic equipment produced in Czecho-
slovakia includes substantial quantities of telephone hand sets, tele-
phone switchboards, teletypewriters, carrier equipment, and possibly
some proximity fuzes and infrared devices. 22/
5. Electron Tubes, Semiconductors, and Electronic Components
Production of electron tubes, semiconductors, and elec-
tronic components*** is shown in Table 4.t The total value of produc-
tion of electronic parts in 1960 is estimated to have been more than
** It is estimated that Czechoslovald,a produces the R-103, R-104,
R-105, R-106, R-108, R-114, R-118, and the R-401. The R-106 probably
is produced in the greatest volume.
xxx These items will be referred to collectively as electronic parts.
t Table 4 follows ?on p. 18.
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Table 4
Czechoslovakia: Estimated Production of Electron Tubes, Semiconductors,
and Electronic Components
1_948-65
1948
1949
1950
1951
,1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963 '
1964
1965
Electron tubes
Units (thousand)
2,381
2,600
2,800
3,100
3,300
3,600
4,000
4,314
6,130
8,257
9,470
11,223:
13,000
14,000
16,000
18,000
21,000
24,000
Television picture tubes
Units (thousand)
0
0
0
0
0
0
1
10
35
loo
200
300
330
360
400
11.140
480
Value (million 1957 crowns).
36
- 41
46
52
59
67
75
86
121
175
220
277
347
384
423
464
503
539
Semiconductors
Units (thousand)
0
0
0
0
0
0
38
200
540
1,100
1,700
2,500
4,000
6,200
9,700
15,000
24,000
Transistors
Units (thousand) "'
0
0
0
0
0
0
0
0
13
. 67
170
330
670
1,200
2,100
3,800
6,700
12,000
Diodes
Units (thousand)
o
o
o
o
o
o
o
38
190
470
940
1,400
1,900
2,800
4,100
5,900
8,400
12,000
Value (million 1957 crowns)
0
0
0
0
0
0
0
1
4
10
21
34
53
86
140
220
360
590
Electronic components
Units (thousand)
16,000
18,000
19,000
21,000
23,000
25,000
27,000
29,000
36,000
45,000
56,000
69,000
86,000
110,000
130,000
160,000
200,000
250,000
Value (million 1957 crowns)
15
, 16
18
20
21
23
25
27
34
42
52
65
8o
99
123
152
188
233
Total value (million
1957 crowns) ,
51
64
/a
80
22
la
114
158
22/
g.21
312
480
568
683
839
1,050
1,360
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4 times that of 1955, and, by 1965, production is expected to be about
12 times that of 1955 and almost 3 times that of 1960. The estimated
value of production of electronic parts was increasing at about the
same rate as the estimated net value of production of all electronics
during 1955-60 but will be increasing at about twice the rate for total
electronics during 1960-65, primarily because of an expected rapid
growth of production of semiconductors during the Third Five Year Plan.
A large new plant at Pie4any, Slovakia, for producing electron tubes
and semiconductors will be completed during the Third Five Year Plan. 21/
A comprehensive line of electron tubes is produced in Czecho-
slovakia. Although an exhaustive listing of types of tubes produced
is precluded, the following major categories summarize the scope of the
Czechoslovak electron tube industry at present2?-1/:
Category Number of Types
Network "heptai" and "noval" receiver electron
tubes 57
Battery receiver electron tubes 7
Picture tubes 18
Medium-capacity transmission electron tubes 3
Magnetrons 7
Klystrons 14
Antenna-discharge switches
Photoelectric tubes 5
Photoelectric multipliers 4
Transmitters of pictures from the infrared
spectrum zone into the visible zone 2
Electron tubes for television studio cameras
and for industrial television 6
Electron optical transmitter of X-ray radia-
tion 1
Although many types of modern electron tubes produced in
Czechoslovakia are based on types of electron tubes originally de-
veloped and produced in the West, it is estimated that Czechoslovakia
is self-sufficient in the supply of electron tubes in terms of product
mix, quality, and quantity. Furthermore, Czechoslovak competence in
production of electron tubes is reflected in the selection of Czecho-
slovakia by the Council for Mutual Economic Assistance (CEMA) to pre-
pare lists of preferred tubes for the purpose of standardizing and
specializing production of electron tubes in the Bloc. As of August
1960, technical exchanges had been accomplished, but no distribution
of production tasks had been made among the electron tube industries
of countries within the Bloc. E_V
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Semiconductors produced in Czechoslovakia include germanium
diodes and transistors of the point-contact and junction types, ger-
manium'photocells, quartz diodes, and silicon diodes Silicon tran-
sistors are still under development. In 1959, several types of germanium
transistors in power ratings of 0.1 watt, 0.3 watt; and 10 watts were
produced. In 1961, transistors with power ratings up tb 50 watts were
first produced in experimental shops,. Transistors with freqUencies -
up to 30 megacycles are in production, and preparation for production
of transistors with frequencies up to 75 megacycles was underway in
1960. In all, Czechoslovakia produces about 65 different types of
germanium devices. Difficulty in eliminating impurities from germanium
has been the chief cause for rejection of germanium semiconductors in
Czechoslovakia, but these semiconductors are generally regarded as
comparable with any produced elsewhere in the Bloc. 2g
Czechoslovakia produces most types of passive electronic
components. Electrolytic, paper, and vaporizedmetal capacitors are
produced, as are the major types of resistors, including carbon-
deposited, composition, and precision wirewound resistors, and poten-
tiometers, coils, relays, and some ferrites. This sector has been
expanded rapidly since 1955, when production apparently lagged behind
requirements. Large new plants for production of electronic components
are being built at Jihlava and Blatna. Continued rapid expansion of
production and improvements in product mix and quality are planned
through 1965. 2//
IV. Technology
A. Status and Trends Ley
Management of the electronics industry of Czechoslovakia appar-
ently believes that the present decentralized structure of the industry,
as outlined earlier,* will eliminate several major shortcomings of the
industry in technical development. These shortcomings concern the
excessive cost of research and development, tardiness in translating
results of research and development into production, and delays in in-
troducing Modern methods of production designed to increase the produc-
tivity of labor. Undoubtedly the present organization will facilitate
cooperation between research and development and production organiza-
tions because they are now under the same management.- ,
Other current problems are not directly subject to solution
by management but must be attacked at the technical level by electronic
scientists and engineers. These problems were summarized in 1958 in a
speech by the.minister of the former Ministry. of Precision Machine
Building as follows:
* See II, p. 4, above.
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... It would be incorrect not to see a
number of shortcomings which emerged during
the rapid expansion of our low-current [elec-
tronic] engineering industry and which we have
not yet been able to eliminate despite great
effort. For example, the technical level
and the productive capacity in the telecommu-
nications branch are not yet quite satisfactory
for the demands of modern communications tech-
nique. In the field of radioelectric board
[navigation] systems we still have to make a
great effort to conform to international re-
quirements. In the field of parts [resistors,
capacitors, coils, and the like] we have not
yet reached world standards in regard to
achievement of miniature size, adaption to
tropical climate, and standardization of para-
meters. We still have a great deal of work
to do to improve the quality and longevity of
[light] bulbs and fluorescent tubes. We must
eliminate a number of shortcomings in quality
and variety of parts. We must overcome techni-
cal and technological [probably organizational]
obstacles in the introduction and application
of semiconductive elements, and in all branches,
substantially improve the technology of pro-
duction, especially in regard to mechanization
and automation, thereby making the output more
effective and economical.
The minister emphasized in the same speech the point that ex-
panded production of electrOnic equipment must be accompanied by sub-
stantial cost reductions:
It is necessary to realize a substantial
.decrease in production costs for investment and
consumer goods and for instruments and for elec-
tronic tubes and parts. First, it is necessary
to lower the cost of materials, which in our
manufacturing form a substantial proportion of
the calculated cost. One way this can be
achieved is by more economical designs and by
a maximum application of standardized elements.
It can also be achieved by better organization,
mechanization, and automation of production,
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for which the [planned] substantial increase in
production over the next years offers good pros-
pects.
In spite of rather high costs of production in comparison with
some countries of the Bloc, notably the USSR, and with most Western .
countries, Czechoslovakia has overcome difficult problems of develop-
ment, design, and technology of production with respect to several
complicated types of electronic equipment and sometimes has achieved
technical parameters equal to or better than world standards. For
example, various electronic tubes, particularly for television broad-
cast receivers, have been designed and produced successfully. Similar
accomplishments have been made in radio and television broadcasting
equipment, transmitting equipment for telephony and telemetry, air
navigation instruments, industrial dispatcher systems, magnetophones,
amplifiers, electronic measuring instruments, and radio relay systems.
In addition, the basic problems of development and production
of semiconductors, dosimeters, and indicator devices for nuclear engi-
neering have been solved. The electronics industry of Czechoslovakia
also has achieved very high standards in production of radio and tele-
vision broadcast receivers, speaker systems, and military electronic
equipment. Although electronic computers are mostly in the develop-
mental stage, much work has been done toward completion of designs of
analog and digital computers that will utilize semiconductor and mag-
netic elements.
B. Research and Development
By 1958 the outlays for electronic research and development
in Czechoslovakia had reached a sum equivalent to about one-eighth of
the gross value of production of electronics, or about 250 million
crowns ($21 million) (see the accompanying chart, Figure 4*). Expendi-
tures for research and development of electronics are expected to
double by 1965 -- that is, to reach about 500 million crowns. In
fields that require intensive development, the rise in expenditures
from 1958 to 1965 will be even more pronounced. Expenditures for re-
search and development of semiconductors in 1965 will be about six
times those of 1958, and similar expenditures for electronic com-
ponents in 1965 will be about four times those of 1958. E2/
In spite of these rapid increases, total outlays for electronic
research and development are not expected to expand as rapidly as gross
production. Present estimates indicate that, compared with the figure
* Following on p. 23.
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Million /957 Crowns
600
500
Percent
400
300
200-
1-00-
0
? f.1 e
?C ,
r>
1958 1965
1958 1965
C C
600% .
500%
400%
300%
200%
C
?
100%
-`-- o%
1958 1965
Absolute Expenditure Comparative Index Comparative Index
on All Electronics of Expenditures of Expenditures on
on Semiconductors Electronic Components
(1958=100) (1958=100)
Figure 4: Estimated Expenditures for Research and Development of Electronics
L35416 9-61 in Czechoslovakia,1958 and 1965.
of 12 to 13 percent for 1958/ expenditures on electronic research and
development in 1965 will constitute a sum only. 9 percent. as large as
the gross value of production of electronics.
The training of several thousand technical experts, who will
be required to expand the research and development effort in the elec-
tronics industry, is expected to be one of the major problems confront-
ing the technical sector of the higher educational system of Czecho-
slovakia during the Third Five Year Plan.
Basic research for electronics is carried out in the Research
Institute for Communications Engineering, to which the major part of
the Research Institute for Electrical Engineering Physics has been
transferred. Other research institutes for development of products
are attached to the electronic branch enterprises.
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The major areas of research and development for electronics
in Czechoslovakia are semiconductors, electronic components, electron
tubes, automatic telephone exchanges, communications equipment, mate-
rials, computers, radar, and applications of automation. In the design
and development of semiconductors, electron tubes, and other components,
primary objectives will be to facilitate automated production and to
standardize and improve technical parameters. There are plans to
develop and produce germanium transistors with a power rating of 100
watts and a top frequency of 100 megacycles as well as silicon tran-
sistors for high-temperature operation (probably military). Electron
tubes are to be developed for computers and for industrial and mili-
tary electronics requiring high-capacity ceramic tubes and air-cooled,
high-efficiency transmitting tubes. Receiving and picture tubes for
color television also are to be developed. Electronic components will
be developed for operation over a wide range of temperatures and for
use in tropical or other extreme cbnditions. Subminiature electronic
components are to be developed for use in printed circuits. Communi-
cations equipment, computers, and electronic measuring equipment will
be designed to use semiconductors and other new electronic components
and materials.
A major problem in the development of new types of electronic
equipment is the development and production of new materials, par-
ticularly metals, plastics, insulation materials, lacquers, and semi-
conductor material. These new materials are required to achieve high
operating parameters, reliability, durability, and lower production
costs in electronic equipment. A spokesman for the Czechoslovak elec-
tronics industry has suggested that plans to accelerate development
and production in the chemical and metallurgical branches of industry
be speedily implemented.
Countries represented in CEMA have agreed to increase the
division of labor among their electronics industries in order to
avoid duplication in electronics research and development. Czecho-
slovakia has been assigned the principal task of coordinating the
development of equipment required for an international automatic
telephone exchange that will incorporate the principle of coordinate,
electronically controlled dialing and that will utilize semiconductors
to increase reliability and durability. In addition, direct coopera-
tion of plants and institutes in East Germany with those in Czecho-
slovakia that are concerned with semiconductors, electron tubes, and
several other unspecified areas of electronic technology has been
carried on in recent years. 10/
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C. Labor Productivity
Data in Table 5* show that from the end of World War II to
1955 the value of production of the electronics industry of Czechoslo-
vakia increased almost wholly as a result of additions to the labor
force as shown in the chart, Figure 5. Labor productivity during this
period was almost stable, rising only about 10 percent over a 10-year
span. Although increases in the labor force were again the dominant
factor in expanding production from 1955 to 1960, labor productivity
increased significantly -- about 60 percent. During the Third Five
Year Plan tne increase in labor productivity will be a greater factor
than the increase in the labor force in the expansion of production.
80,000
60,000
40,000
20,000
0
1955 1956 1957 1958 1959 1960 1961 1962
96
\ 01 ee
195.7
0044 cs
sj V4
9et le
..........
.0.0. ......."""
_.e
.e
se
..."
_.
/
/
se
so?
.
..,,'
1963 1964 1965
Figure 5: Estimated Labor Force and Labor Productivity in the Electronics Industry
of Czechoslovakia, 1955-65.
35417 9-61
The underlying factor of the
and of labor productivity since 1955
investment in the industry.
annual investment in the electronics
great expansion of total output
was, of course, an increase in
the 50X1
industry was expected to average
* Table 5 follows on p. 26.
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Table 5
Czechoslovakia: Estimated Labor Force and Labor Productivity
in the Electronics Industry
1948-65
Labor force
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
Index (1955 . 100)
4-6
51
57
64
72
80
90
loo
120
144
173
208
250
263
275
-288
298
303
Number of employees
8,800
9,800
11,000
12,300
13,800
15,400
17,200
19,200
23,100
27,700
33,300
4o,0o0
48,000
50,500
52,800
55,300
57,200
58,200
Labor productivity
Index (1955 . 100)
91
93
94
95
96
97
98
? loo
117
141
148
155
162
170
179
188
197
207
Value (1957 crowns
per employee-year)
32,000
33,000
33,500
33,800
34,200
34,600
35,100
35,700
41,900
50,500
52,800
55,300
57,800
60,800
64,1o0
6t,l00
70,400
74,100
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150 million crowns during 1955-65. He also stated that during this
period the ratio of return on investment is expected to double, imply-
ing that productivity of plant equipment is expected to increase sharply
with respect to its cost. The calculated average ratio of return on
investment for 1955-65 is about 2.5 to 1. Because the ratio is expected
to double during the period, the initial ratio probably was about 1.7
to 1, and the terminal ratio will be about 3.4 to 1. These ratios ap-
pear to be reasonable, for, in comparison, US electronics firms average
about 3 to 1. 3.1'
Because of the difficulty of converting to a common currency
and a standard work year, comparisons of the absolute productivity of
labor in the electronics industry of Czechoslovakia with similar indexes
in other countries are not highly accurate, but labor productivity in
the electronics industry of Czechoslovakia in 1959 apparently was about
40 percent of that in the US. This figure appears to be somewhat
lower -- perhaps 5 to 10 percent -- than the percentage computed from
a comparison of the absolute labor productivity in the electronics in-
dustries of the US and the USSR. 11/ Thus absolute labor productivity
in Czechoslovakia is estimated to have been about 80 to 90 percent of
that of the USSR in 1959.
V. Trade
A. Volume of Trade
1. Exports
The value of Czechoslovak exports of electronic equipment
for 1952-65 (see the accompanying chart, Figure 6*) is estimated as
follows:
Index
Million
Year
(1955 . 100)
1957 Crowns
1952
67
loo
1953
59
88
1954
53
80
1955
loo
150
1956
145
218
1957
145
218
1958
147
220
1959
207
310
1960
244
366
1961
287
430
1962
337
506
1963
397
596
1964
467
700
1965
550
825
* Following on p. 28.
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900
800
700
600
_ O 400
300
200
100
0
1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965
Figure 6: Estimated Exports of Electronics from Czechoslovakia, 1952-65.
35418 9-61
Although the value of electronic equipment exported by
Czechoslovakia more than tripled between 1952 and 1959, it declined
in 1953 and 1954 and was almost constant during 1956-58. By 1965
the value of such exports is expected to be almost three times that
of 1959, and electronic equipment is expected to increase steadily as
a share of the total exports of industrial equipment by Czechoslovakia.
During 1952-65 the estimated value of electronic equipment
exported by Czechoslovakia represents about 15 to 20 percent of the
annual net value Of production of electronics. Radiobroadcast trans-
mitters have been exported on a significant scale since about 1955, and
television broadcast transmitters have- been exported recently.
Exports of wire communications equipment by. Czechoslovakia
to the countries of. the Free World were almost five'times as large
in 1959 as in 1954, 211/ and such exports to all countries are expeCted
to be seven times as large in 1965 as in 1959. 252 Although the. rate
of increase implied for exports of wire communications.equipment by
Czechoslovakia during 1959-65 is more than twice that of exports of
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all electronic equipment during the same period, the expansion of pro-
duction of wire communications equipment through 1965 is expected to
be adequate to satisfy both domestic and export requirements.
Exports of electron tubes, semiconductors, and electronic
components compared with exports in 1959 reportedly doubled in 1960. .3.g
This increase in exports apparently reflects the demand of countries
such as the United Arab Republic (UAR), Brazil, Argentina, the British
protectorate of Jamaica, and other unspecified countries, where assem-
bly shops have been set up for radio and television broadcast receivers,
particularly radiobroadcast receivers using semiconductors.
Czechoslovakia exported about 200,000 radiobroadcast re-
ceivers during 1954-59,* and during 1959-61 about 170,000 television
sets were to have been exported to East Germany, E/ but no evidence
of actual shipments has been noted. Czechoslovakia is expected to
have available for export during 1961-65 about 625,000 television sets,
accounting for one-half of the total value of electronic equipment to be
exported during that period.*
Czechoslovakia has exported military electronic equipment
to various underdeveloped countries since about 1956, but the quantity
probably has never amounted to more than 5 percent of the total value
of electronic equipment exported.
2. Imports
Although it has not been possible to quantify the value of
all imports of electronic equipment by Czechoslovakia, the value of
imports of nonmilitary electronics apparently has been substantially
less than the value of exports of electronic equipment during 1952-60
and probably will continue to be less during 1961-65.
Imports of military radar from the USSR are estimated to
have averaged in value about 60 million crowns per year during 1952-60.*
Imports of military electronics by Czechoslovakia during 1961-65 prob-
ably will be much smaller than those during the previous 5 years.
Two other instances of significant imports can be quanti-
fied. First, during 1956-57, Czechoslovakia imported from the USSR
87,920 television sets valued at about 220 million crowns. 2/ Second,
in 1958, Czechoslovakia purchased unspecified communications equip-
ment valued at about 30 million crowns from Hungary, East Germany, and
the USSR. 12/
* For the methodology, see Appendix A.
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B. Pattern of Trade 112/
1. General
All Czechoslovak exports of nonmilitary electronic equip-
ment are handled by KOVO, Foreign Trade Corporation for Import and
Export of Precision Engineering Products, and almost all of the elec-
tronic equipment handled by KOVO is made by the Tesla National Enter-
prises. The Tesla trademark is registered presently in 75 countries
although Czechoslovak electronic equipment is exported also to addi-
tional countries. The appropriate component of the Ministry of Defense
usually handles exports and imports of military electronic equipment.
Imports of nonmilitary electronic equipment probably are handled by the
consuming organizations.
To summarize this broad trade pattern, an outline of Czecho-
slovak exports and imports of electronic equipment in terms of products
and importing countries is presented below.
2. Export Pattern
a. Industrial Electronics
(1) Radio and Television Transmitters
Czechoslovakia has exported radio and television
transmitters of many types to about 15 countries. Large medium-wave
radio transmitters of 300 kilowatts have been a popular item for
export. Specific countries that have received transmitters from
Czechoslovakia are Argentina, Communist China, Colombia, Cuba, Guinea,
Mongolia, Poland, Rumania, and the UAR (both Egypt and Syria).
(2) Electron Microscopes
Since 1957, Czechoslovakia has exported electron
microscopes to more than 20 countries, including Australia, Canada,
East Germany, Hungary, Poland, Rumania, the UAR, the UK, the US, the
USSR, and several countries in Western Europe.
(3) Wire Communications Equipment
Czechoslovakia widely and increasingly exported
wire communications equipment, principally telephone exchanges, car-
rier frequency equipment, and telephone handsets, in the last 5 years.
Importers of this equipment have been Afghanistan, Albania, Cuba,
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Finland, Greece, Lebanon, Poland, Rumania, Thailand, Turkey, and the
UAR.
(4) Test and Measuring Instruments
Czechoslovakia supplies principally to the USSR
miniature service and workshop instruments for radio and television
broadcast receivers and laboratory precision measuring instruments.
b. Electronic Components, Electron Tubes, and Semi-
conductors
Czechoslovakia exports electronic components, electron
tubes, and semiconductors to more than 30 countries, including Bul-
garia, Scandinavian countries, West Germany, and other countries of
Western Europe; South American countries, particularly Argentina and
Brazil; the UK; and the USSR.
c. Consumer Electronics
(1) Radiobroadcast Receivers
Czechoslovakia has exported radiobroadcast re-
ceivers, of which the small, transistorized types are becoming the
most popular, to Albania, Argentina, Bolivia, Bulgaria, Canada, Colom-
bia, Finland, Jamaica, Lebanon, Turkey, and the UAR.
(2) Television Broadcast Receivers
Czechoslovakia reportedly promised 20,000 tele-
vision sets for delivery to East Germany in 1959, but no evidence of
delivery has been noted. A further consignment of 150,000 television
sets is supposed to be delivered to East Germany during 1960-61. These
sets are to have 21-inch screens with a 110-degree angle of deflection
in the picture tube.
(3) Phonographs and Tape Recorders
Czechoslovakia has delivered phonographs and tape
recorders to Bulgaria and Guinea.
d. Military Electronics
(1) Radio Communications Equipment
Czechoslovakia has exported military radio commu-
nications equipment to Bulgaria, Communist China, Cuba, Ethiopia, and
Indonesia.
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(2) Radar
Czechoslovak radar probably has been exported to
Cuba and the UAR, although these exports may be confused with Soviet-
produced radar that has been reexported by Czechoslovakia.
(3) Wire Communications Equipment
Czechoslovakia has exported military wire communi-
cations equipment to Indonesia and the UAR.
3. Import Pattern )21/
a. Industrial Electronics
(1) Wire Communications Equipment
Czechoslovakia has imported telephone exchange
equipment from Bulgaria since 1958.
(2) Test and Measuring Instruments
Czechoslovakia has imported unspecified test and
measuring instruments from the Netherlands, Poland, West Germany, and
the USSR.
(3) Radio Communications Equipment
Czechoslovakia has received rather large quantities
of radio communications equipment from East Germany, Hungary, and the
USSR. This equipment may be that required for microwave lines being
constructed in Czechoslovakia as part of an intra-Bloc microwave relay.
system.
(4) Television Transmitter and Associated Equipment
In 1956, Czechoslovakia imported a television trans-
mitter and associated equipment from France for the equivalent of
$334,000.
(5) Electronic Computers
Czechoslovakia has imported a few large digital
computers from the USSR and the UK for use in scientific institutes.
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(6) Microwave Relay Equipment
Czechoslovakia imported from the USSR in 1959
microwave relay equipment for the construction of a microwave relay
line for the transmission of television data between Prague and
Bratislava.
. Electronic Components, Electron Tubes, and Semi-
conductors
(1) Electron Tubes
Czechoslovakia has imported electron tubes from
Communist China and the USSR.
(2) Transistors
Czechoslovakia has imported transistors from
West Germany.
(3) Electronic Components
Czechoslovakia has imported electronic components
from the USSR.
c. Consumer Electronics
During 1956-57, Czechoslovakia imported 87,920 tele-
vision sets from the USSR.
d. Military Electronics
Czechoslovakia has imported large quantities of mili-
tary radar equipment from the USSR since World War II, primarily for
use in the air defense system of the Bloc.
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APPENDIX A
METHODOLOGY
1. Production
. a. Gross and Net Output
The electronics industry of Czechoslovakia in 1957 was composed
of the facilities presently included in the six electronic branch
enterprises, the Association of Telecommunications Enterprises, and
the facilities of the Tesla National Enterprise in Brno, which is now
in the instrument engineering industry. (For the present organization
of the industry, see=.*) Thus in 1957 production of electronic
equipment by other organizations** in Czechoslovakia was not accounted
for by the electronics industry as conventionally defined by the
Czechoslovak government, but production of illumination sources (de-
fined as nonelectronic in this report) was accounted for by the elec-
tronics industry of Czechoslovakia in 1957,
Precise adjustment for this situation could not be made, be-
cause of lack of information to quantify production of electronic
equipment by organizations other than those considered by the Czecho-
slovaks to be in the electronics industry. As an approximate com-
pensation for the omission of this production, however, the value of
output of illumination sources was left in the figure for the gross
value of production of electronics in Czechoslovakia in 1957, which
was given as 1,569.5 million crowns by a member of the State Planning
Office of Czechoslovakia./12/
The index of the gross value series for production of elec-
tronics in Czechoslovakia was constructed on the basis of the follow-
ing information:
(1) The index for 1960 was planned to be 400 and for 1965
to be 700 with 1955 as the base year. 111/
(2) The index for 1958 was 600 with 1948 as the base
year. Lili/
(3) The index for 1960 was 200 with 1957 as the base
year. L2/
* P. 4, above.
** See II, p. 4, above.
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The above index numbers were integrated into one index for the
period 1948-65 with 1955 as the base year. Average annual rates of
growth were used to connect the terminal years of the given index num-
bers. The gross value series was then constructed on the basis of the
absolute value for gross production given for 1957 and the integrated
index.
The net value series as constructed here is not a true value
added series, because certain intermediate materials and services are
double counted. However, double counting of the value of electron
tubes, semiconductors,' and electronic components (already included
in the value of the end products) has been elithinated by subtracting
from gross output the value series constructed for these items (see
Table 4*). Replacement tubes are considered to be end products and,
therefore, are included in the net value of production. The value of
replacement tubes was estimated to comprise about one-third of the
value of production of electron tubes for 1957-65 and about one-sixth
for 1948-56.
The gross value and net value of production -series derived
from the above methodology are as follows (in million 1957 crowns):
Year
Gross Value Series
Net Value Series
Index
(1955 = 100)
Value
Index
(1955 = 100)
Value
1948
'42
330
- 42
-285
1949
48
377
48
- 327
1950
54
424
54
368
1951
61
479
61
416
1952
69
542
69
472
1953
78 .
612
78
533
1954
88
691
: ,88
603
1955
100
785
100
686
1956
141
1,110
141
969
1957
200
1,570
204
1,400
1958
252
1,980
256
1,760
1959
318
2,500
323
2,210
1960
400
3,140
4o5
2,780
1961
447
3,510
447
3,070
1962
500
3,920
493
3,380
1963
560
4,400
541
3,710
1964
626
4,910
587
4,030
1965
700
5,500
628
4,310
* P. 18, above.
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The projections through 1965 for gross and net value of produc-
tion that are shown above and the projections that follow for individual
commodities and subsectors are considered to be reasonable in the light
of past performance of the industry and the evidence of investment in
the industry given by construction of new plants and renovation of old
plants.
b. Consumer Electronics
(1) Radiobroadcast Receivers
Planned production was given for the year 1965. 22/ Annual
production for the years 1961-64 was estimated by interpolating at the
average annual rate of increase scheduled between 1960 and 1965. The
completed series is shown-in Table 2.*
(2) Television Broadcast Receivers
* P. 12, above.
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Planned production was given for the year 1965. 2/ Annual
production for the years 1961-64 was estimated by interpolating at the.
average annual rate of increase scheduled between 1960 and 1965. The
completed series also is shown in Table 2.*
(3) Phonographs and Tape Recorders
The figures given for domestic sales were used as produc-
tion figures for 1956-59.2,E1./ Production in 1954 and 1955 was esti-
mated at 25 percent of the production of radiobroadcast receivers
based on the ratio of radiobroadcast receivers to phonographs and
tape recorders in 1956. Production was arbitrarily tapered off back
to 1952, when production first became economically significant. The
production series for 1960-65 was estimated at about 16 percent of
the number of radiobroadcast receivers produced based on the ratio
of radiobroadcast receivers to phonographs and tape recorders in 1958
and 1959.
(4) Wired Loudspeakers
Production of wired loudspeakers began in 1954. The change
in annual inventory of wired loudspeakers was estimated to eval pro-
duction during 1954-59. .52/ Production to 1965 was extrapolated at
the rate that obtained during 1956-59.
(5) Replacement Electron Tubes for Consumer Electronics
The annual volume of replacement receivIng tubes was esti-
mated to represent about 10 percent of the inventory of receiving tubes
in use in consumer electronics. This percentage and the estimated
prices of tubes were derived from analogy with US data. .6_2/ In 1957
prices the average unit price for receiving tubes was 11.34 crowns,
and the average unit price for picture tubes was 255.4 crowns. The
annual volume of picture tubes allocated to replacement was obtained
by subtracting the number of tubes installed in newly manufactured
television sets from the total number of such tubes produced annually.
(6) Prices of Consumer Electronics
Retail prices for the average televisidn and radiobroad-
cast receiver and phonograph or tape recorder were computed from offi-
cial Czechoslovak sales data. 61 / The retail price of a wired loud-
speaker also was obtained. 62I To convert retail to f.o.b. factory
prices for radiobroadcast receivers, phonographs and tape recorders,
and wired loudspeakers, the retail prices were deflated by 42.5 percent.
* P. 12, above.
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This percentage was given for a typical radiobroadcast receiver in
1957. L/ The retail price of television broadcast receivers was con-
verted to an f.o.b. factory price by deflating the retail price by 19
percent, which is equivalent to an analogous factor computed for the
USSR, representing the estimated turnover tax and cost of sales and
distribution in the USSR.
The f.o.b. factory prices derived from the above method-
ology are as follows:
Item
Price
(1957 crowns)
Radiobroadcast receiver
633
Television broadcast receiver
2,497
Phonograph or tape recorder
610
Wired loudspeaker
201
c. Industrial and Military Electronics
(1) General
The value of production of industrial and military elec-
tronics in 1948 was derived by subtracting the estimated value of
production of consumer electronics from the estimated total net value
of production. The value of production of wire communications equip-
ment for 1948 was estimated from figures given for the Two Year Plan
(1947-48). L/ The difference between the value of production of wire
communications equipment and the estimated value of total industrial
and military electronics was arbitrarily divided evenly among military
electronics, radio and television broadcast transmitters, and other
industrial electronics. Thus in 1948 the estimated value of production
of industrial electronics was 90.8 million crowns, allocated as fol-
lows: 70.8 million crowns for wire communications equipment; 10.0 mil-
lion crowns for radio and television broadcast transmitters; and 10.0
million crowns for other industrial electronics. In addition, mili-
tary electronics was allocated 10.0 million crowns.
(2) Industrial Electronics
(a) Wire Communications Equipment
The value of production estimated for 1948 was used
with an index of production for 1948-59 given for the Tesla Karlin
Plant, which was the primary producer of wire communications equipment
during the period, to derive the value series for that period.
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The index for 1959-65 was based on an index given for the Tesla Karlin
Plant and on information that three new plants for production of wire
communications equipment would be activated during the period. .1,/
The value series for 1960-65 was based on this index.
(b) Radio and Television Broadcast Transmitters
The estimated value of production during 1948-58 was
based on the estimated value for 1948 and the estimated number of
radio and television broadcast transmitters produced during the
period. The series was extrapolated to 1965 by geometric pro-
gression on semilogarithmic graph paper that approximated the average
annual rate of increase between 1950 and 1958.
(c) Other Industrial Electronics (electronic computers,
electronic measuring instruments, point-to-point
radio, civil navigational devices, punched-card
machines, electron microscopes, automation equipment,
and microwave equipment for civilian use)
The estimated value of production of other industrial
electronics for 1948-55 was based on the value estimated for 1948 and
the index estimated for wire communications equipment. The series was
extended through 1960 on the basis of the index estimated for the net
value of production of total electronics. The series for 1960-65 was
estimated on the index for production of semiconductor diodes using
1960 as the base year. The choice of these indexes for other indus-
trial electronics was influenced by qualitative statements concerning
the importance of the various commodities included in the category. .2./
(3) Military Electronics
The quantity of military electronics for the entire period
of the estimate was derived as a residual by subtracting the estimated
annual values of production of consumer and industrial electronics
from the series estimated for the total net value of production of elec-
tronics. Spot checks on production of radar, military radio, and mili-
tary wire communications equipment in Czechoslovakia indicate that the
estimated residual for military electronics is of the correct order of
magnitude.*
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d. Electron Tubes, Semiconductors, and Electronic Components
(1) Electron Tubes
(a) All Electron Tubes
Absolute figures for physical production were given in
terms of units for 1948 and for 1955-59. An index of physical produc-
tion was given as 250 for 1965 with 1958 as the base year. /2/ The
average annual rates of growth were computed for 1948-55 and for 1959-65,
and the series was completed by applying these rates of growth to the
series of physical production.
The value series for electron tubes was derived from
the series estimated for net value of production of total electronics
on the basis of analogy with US data indicating that the value of pro-
duction of electron tubes averages about one-eighth of the net value
of total production of electronics. /1/
(b) Television Picture Tubes
The physical production in number of units of television
picture tubes was given for 1960. 12/ Production for 1959 was estab-
lished from information that requirements would be met by domestic pro-
duction for the first time. Production for 1958 was estimated on the
basis of the rate of production of television picture tubes given for
December 1958. /1/ Production for 1956 and 1957 was related to that
for 1958 by index numbers given in Czechoslovak press reports. /).:1/
Production in 1954 and 1955 was estimated from information indicating
that production was initiated in 1954 and that twice as many tele-
vision Picture tubes were produced in 1956 as in 1954 and 1955 com-
bined. /2/ Production was extended to 1965 at an average annual rate
of increase of 10 percent.
(2) Semiconductors
The production series for semiconductors was estimated
from statements that total production of these elements would be 20
percent of production of electron tubes in 1960 and equal to produc-
tion of electron tubes in 1965 and that the production of transistors
alone would be about 12 million units in 1965. 1,61 Presumably the
statements referred to production in terms of physical units. Also,
the assumption is that production of transistors would increase about
1.8 times as rapidly as production of all semiconductors during 1960-65.
With the additional information that production of semiconductor diodes
and rectifiers became economically significant in 1955 and that of
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transistors significant in 1956, it was possible to complete the pro-
duction series of semiconductors shown in Table 4.* ///
The value of production of semiconductors for 1957 was
estimated on the basis of data on production at the Roznov plant,
which produces electron tubes and is the sole producer of semiconduc-
tors in Czechoslovakia. From data concerning planned cost reduction
and a planned increase in production in 1957 above 1956, it was de-
termined that in 1957 the Roznov plant produced electron tubes and
semiconductors valued at about 140 million crowns. If/
the Roznov plant produced about three-fourths
of all electron tubes and semiconductors produced in Czechoslovakia. 12/
Thus the total value of electron tubes and semiconductors produced in
1957 was about 185 million crowns. Subtracting the estimated value
of production of electron tubes in 1957, 175 million crowns, leaves
about 10 million crowns as the estimated value of production of semi-
conductors in 1957.
The relative shares of transistors, crystal diodes, and
rectifiers in the total value of production of semiconductors in 1957
was estimated on the basis of analogy with US data that the unit price
of transistors was about twice that of diodes and rectifiers. flci The
crown unit prices thus established for 1957 were used to compute the
value of semiconductors using numbers estimated in the series of physi-
cal production.
(3) Electronic Components
The index of production of components for 1955-65 was based
on an index of 850 given for 1965 with 1955 as the base year. fl/ Pro-
duction for intervening years was computed at the average annual rate
of growth. The index for 1948 to 1955 was assumed to be the same as
that for electron tubes. The production series of physical units was
computed from the index using physical production for the year 1957,
which was estimated to be about 45 million on the basis of production
at the Tesla Lanskroun Electronic Components Plant. f2/
Data on the US and USSR indicate that the production value
of electronic component parts averages about 6 percent of the net
value of output of the electronics industries of these countries. f.3./
However, because production of components was lagging in Czechoslovakia
in relation to the total production of electronics, fdl/ a factor of
3 percent rather than 6 percent was used to estimate the absolute value
of electronic components for 1957. The values for the other years of
the series were computed from the index of physical production.
* P. 18, above.
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2. Labor Force, Labor Productivity, and Output-Capital Ratio
a. Labor Force and Labor Productivity
The number of emp1oyee6. in the electronics industry of Czecho-
slovakia was given in absolute terms for 1946, 1950, and 1960. .g,2/
In addition, an index of the number employed in the industry was given
for 1960, with 1955 as the base year. Employment during 1946-60 could
thus be estimated by calculating the average annual rates of growth
between known years. The number of employees in the industry, for
1960-65 was estimated by the methodology below.
From the estimate of the size of the labor force for each year
during 1946-60 and the estimate of net value of production for the
same period, an index of labor productivity was calculated. The in-
dex was extended to 1965 at the typical rate -- about 5 percent per
year -- which obtained from 1957 to 1960. This index was then used
to calculate the index of employment in the industry during 1960-65 --
that is, the index of net output was divided by the index of labor
productivity.
b. Output-Capital Ratio
The output-capital ratio for 1955-65 was calculated from the
increase in the estimated net value of production in 1965 above 1955
and the value of total investment given for the period. .?.?../
3. Trade
6. Exports
The index of the value of exports of electronics from Czecho-
slovakia was given for 1952-59 and extended to 1965 at the average
annual rate of increase computed from the index given for 1965.
The value of exports in 1965 was planned to be 15 percent of the gross
value of production in 1965, or about 825 million crowns. This
figure and the index of exports were used to compute the value series
of exports of electronics during 1952-65.
Because the inventory of television broadcast receivers in
domestic use is planned to increase by about 1.1 million units during
1961-65 _821 and because production during the same period has been
estimated, it is possible to estimate the receivers available for ex-
port during the period -- about 625,000 television sets worth about
1.6 billion crowns. This quantity is calculated to be about 50 per-
cent of all estimated exports of electronic equipment during 1961-65.
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The availability of rediobroadoast receivers for export during
1954-59 was calculated by subtracting the number of radiobroadcast,
receivers sold domestically from the total number produced. 0
4. Crown-Dollar Ratio
The crown-dollar ratio applicable to the total value of electronics
produced in Czechoslovakia was calculated from the per capita produc-
tion in crowns given for the US in 1957 by the State Planning Office
of Czechoslovakia. 22/ A similar figure for per capita production in
US dollars was derived from US data 22/ and divided into the per capita
figure given in crowns to derive the crown-dollar ratio in terms of
1957 crowns. and 1957 US dollars. The resulting ratio was 12.07 crowns
per dollar for electronics compared with the official exchange rate
of 7.2 crowns per dollar.
4
The crown-dollar ratio of 12 was used to convert the 1957 crowns
used in 'estimates of production of electronics in Czechoslovakia to
1957 US dollars for the purpose of comparison with the value of produc-
tion of electronics in other countries.
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