The article examines how the Czech automotive industry improved its functions through research and development (R&D) from 1998 to 2008. The researchers studied 476 Czech automotive firms, surveyed 274 firms, and conducted 25 company interviews. They looked at changes in R&D activities, the main factors influencing R&D locations in Czechia, and how R&D was distributed across regions. The study also analyzed the concentration of automotive R&D in different areas. The findings show differences between foreign-owned and domestic companies in R&D activities. Overall, the Czech automotive industry's position in European production networks improved during the period studied.