Research & Development Sector Profile A FUTURE OF INNOVATION Albeit one of the smallest EU member states, research and development is an area where <strong>Cyprus</strong> punches well above its weight. Unprecedented investment into the sector and ground-breaking projects are establishing this small island, not only as an innovation and research hub, but as a regional centre of excellence providing strong links with the global scientific and technical innovation community. 122 <strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong>
Despite having significant numbers of highly qualified scientists and researchers across a wide range of disciplines and home to numerous pioneering research institutions, <strong>Cyprus</strong> has historically been slightly behind the curve when it has come to research and development across Europe. However, <strong>2020</strong> has been a milestone in reversing the tide with the establishment of the Deputy Ministry of Research, Innovation and Digital Policy, which has underlined the government’s recognition of research and innovation as a fundamental pillar of a new model for growth to expand the productive base of the <strong>Cyprus</strong> economy. Unprecedented government investment in the sector combined with an unparalleled per capita base of skills and expertise, mean that <strong>Cyprus</strong> is a rising star in this field producing world-class research and innovation with tangible benefits for society. Further evidence of the high calibre of research and development (R&D) being undertaken in <strong>Cyprus</strong> is the fact that the country ranks first among the EU member states in relation to the per capita absorption of funds from the biggest EU research and innovation programme, Horizon <strong>2020</strong>, which has a budget of nearly €80 billion. The strong focus placed on this sector today will further support applied sciences and basic research that have the potential to facilitate future innovations and disruptive tech – and truly establish <strong>Cyprus</strong> as an R&D powerhouse in the East Med. THE CORONA EFFECT The Covid-19 pandemic has without a doubt been the biggest upheaval of <strong>2020</strong> and spurred the need to find solutions on how to tackle the consequences of the virus. The challenges brought the R&D sector front and centre worldwide. <strong>Cyprus</strong> was fast to act with measures to limit the exposure and has fared well compared to many countries, but it also boosted the R&D sector and saw it as an opportunity to innovate and significantly accelerate digital transformation across several areas of society and business. Only a few weeks after the Covid-19 pandemic reached the island, top health and technology researchers came together to develop a series of apps and portals. The University of <strong>Cyprus</strong> along with the Deputy Ministry for Research, Innovation and Digital Policy, created a portal recording all reports of confirmed Covid-19 <strong>Cyprus</strong> has embarked on an exciting journey towards its digital transformation and a knowledge-based, digital economy, driven by research, innovation and technological advancement. Technology is a key lever and enabler for this multi-faceted transformation, aiming to boost sustainable economic growth and social prosperity, as well as enhance our country’s international competitiveness and our people’s quality of life. Using the opportunities offered by the new digital environment, we aim to create a modern and efficient public sector, providing user-friendly, quality digital services to all citizens and businesses. Our greatest challenge is to build a strong culture of innovation and entrepreneurship in society, enabled by a digital and researchoriented mindset, forward-looking and able to facilitate an agile and swift response to today’s fast-changing environment. Kyriakos Kokkinos Deputy Minister of Research, Innovation and Digital Policy cases in real time, along with geographical data and risk assessment, which the Health Ministry utilised to make key decisions. Engineers also created the CovTracer app, allowing people to trace their location and contact history to notify people in case the user tests positive. Another app born from the corona crisis was WaitLess, which has the ability to show people real time traffic in supermarkets, in a bid to avoid large groups of people and reduce the spread of the virus. The Research and Innovation Foundation (RIF) – the national authority in charge of supporting and promoting research, technological development and innovation in <strong>Cyprus</strong> – acted swiftly launching a series of calls specifically targeting the pandemic and to develop local synergies while also taking into account regional, European and global initiatives, priorities and needs. Among the announced projects were SEED-COVID with the aim to develop internationally competitive products and services by start-ups, and INNOVATE-COVID with the remit of funding internationally innovative products and services by existing enterprises. Both programmes have a budget of €1 million and share the goal to provide <strong>Cyprus</strong>’ ecosystem with the tools and support needed to come up with solutions that may relate to the prevention, diagnosis, treatment or management of social and economic repercussions. A NEW FOCUS ON INNOVATION <strong>Cyprus</strong> has truly embraced R&D and its importance in the development of a robust and stable economy capable of meeting the needs of future generations. Equipped with a national strategy on research and innovation, the goal is to bring academic research to the market in order to release its economic potential, a process that involves building bridges between the worlds of academia and commerce. Brandishing the slogan ‘Innovate <strong>Cyprus</strong>’, a range of specific incentives were introduced, including the expansion of a pilot programme offering start-up visas to third-country nationals who want to establish and develop innovative start-ups in <strong>Cyprus</strong>. In addition, the government has committed to doubling its expenditure on developing technology, promising to assign €400 million to R&D infrastructure, matched by a corresponding injection of private finance. These funds are expected to bring the country’s total contribution to R&D up to 1.5% of GDP over the next five years – aligning it more closely with EU averages. Sector Profile <strong>Country</strong> <strong>Report</strong> CYPRUS <strong>2020</strong> 123
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