Czech tech: Eastern Europe's Silicon Valley?

In an attempt to distance itself from its Soviet roots, the Czech Republic is now home to some of eastern Europe's fastest-growing tech startups, but entrepreneurs warn that a lack of government support is creating a huge drag on the sector's future.

Some 80 percent of Czech exports end up in the European Union according to the Confederation of Industry of the Czech Republic, and a growing part of these are now tech-related.

In 2012, the Czech Republic became a net exporter of technology and digital related products for this first time, and its very close trade ties with Germany have been an integral in establishing its reputation as a technology hub, the joint CEO of CEE Stock Exchange Group, Petr Koblic told CNBC.

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"We are not exporting bread, it is much more sophisticated than that," he said.

"Czech Republic and Germany work very closely. We are not exporting goods that end up in German supermarkets – but much more in industry and technology. There is a flow of goods between both countries and many companies have plants on both sides of the border, we are very interconnected," Koblic added.

Logic Point, a business and technology consulting firm that helps companies integrate new technology and social media, was recently named the fastest growing technology company in Czech Republic by Deloitte, based on the group's revenue growth.

"There is a huge price war here in the Czech Republic, because there are quite a few suppliers of software," group CEO Stefan Fillibeck told CNBC, adding that the Czech Republic had carved a niche for itself an as "agile" technology developer, with talented programming and software developer graduates.

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The Czech Republic benefits from universities with strong maths, engineering and information technology faculties dating back to its communist era, when the Soviet Union was mindful of the skills needed to the fight the Cold War. One such institution is Prague based Charles University, one of the oldest universities in the Europe which now has an internationally recognised reputation in information technology.

"Here we have a quite an education level, there are several tech universities here and very creative people, not bound in that old fashioned way, so we are doing software development in a very different way to how it is being done in Germany," he added.

"In Germany it is very hard to convince companies to work in that agile kind of project framework," he added.

But the vice president of Confederation of Industry of the Czech Republic, Radek Spicar said Czech startups are still struggling with a huge lack of support from the government.

Spicar said information and communication technology (ICT) government policies in particular are a real problem, as is the severe lack of government investment.

"Policy is definitely compromising growth. I spoke to a CEO of Czech startup and a recent panel and his words were 'if you can make it here, you can make it anywhere,'" he added.