Foreign investment has flooded into the Czech Republic, according to the annual World Investment Report released at the UN Conference on Trade and Development (UNCTD).

The report revealed that in 2005 $11 billion (£5.8 billion) was invested into the Czech Republic in terms of Foreign Direct Investment (FDI).

This was the highest amount of foreign investment made in any of the ten countries that joined the EU in 2004, which include Poland and the Balkan States.

Tomas Hruda, the CEO of CzechInvest, said: "The Czech Republic has excelled in attracting high-quality foreign direct investment because of its educated population and focus on innovation-driven industries.

"As an economy, we're expanding and growing with a strategic vision for international collaboration and innovation."

In worldwide terms the Czech Republic came 20th in the list of countries who received the most FDI. The ten countries that joined the EU in 2004 received a total of $34 billion of FDI as a group.

FDI is used for a variety of projects in the Czech Republic enabling the country to develop and modernise more quickly and to improve on its infrastructure.

Over the last two years there has been a distinct focus on technology and innovation in the Czech Republic. Foreign companies have built and developed 40 technology and distribution centres in the country since 2004.

The future of FDI into the Czech Republic also looks very positive with a number of major businesses looking to invest in the country. These include computer company Hewlett-Packard, Honeywell International, an aerospace and automation company and Sun Microsystems.