2020 Cyprus Country Report

Despite having significant numbers
of highly qualified scientists and
researchers across a wide range of
disciplines and home to numerous
pioneering research institutions,
Cyprus has historically been slightly
behind the curve when it has come
to research and development across
Europe. However, 2020 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 Cyprus
economy.
Unprecedented government investment in the
sector combined with an unparalleled per capita
base of skills and expertise, mean that Cyprus 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 Cyprus 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 2020, 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
Cyprus 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 2020 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. Cyprus
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 Cyprus
along with the Deputy Ministry for Research,
Innovation and Digital Policy, created a portal
recording all reports of confirmed Covid-19
Cyprus 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 Cyprus – 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 Cyprus’ 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
Cyprus 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
Cyprus’, 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 Cyprus. 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
Country Report CYPRUS 2020 123