2020 Cyprus Country Report

Technology & Start-Ups
Sector Profile
CORONA IMPACT
Although the coronavirus pandemic has had
devastating consequences on the world economy,
with Cyprus also feeling its effects, there has been
a silver lining in the situation speeding up digital
and technological advancements.
In Cyprus the pandemic forced the government
to spin into action and adapt to the needs
and imperatives imposed by crisis management
in the post-corona era. The long-term action plan
to automate public services was sped up with
the urgency to deliver these priorities faster for
the benefit of individuals and businesses. What
would have taken a few years to achieve has been
pushed to the top of the agenda with the aim to
complete the targets in a matter of months.
Substantial government funds are now allocated
to support the rapid development of e-government.
Thanks to around €350 million made
available, Cyprus will be able to implement 160
e-government services – considerably more than
the 50 deemed essential.
Even before the pandemic crisis, the government
had already set in motion plans to reinforce
the tech sector in Cyprus, by creating a unique
visa to host services from abroad and in attracting
skilled Cypriots from the diaspora to return
to Cyprus, and to bring in new technology and
know-how that may not be found on the island.
DEEPENING THE TALENT POOL
Cyprus already has an extensive and internationally
recognised pool of skilled professionals in financial
and business services, but where this pool
still remains relatively shallow is in the tech sector
– a gap the country urgently needs to bridge if it
wants to develop its IT landscape. Cyprus has attracted
more than 7,000 IT pros, the majority of
whom are seasoned and older professionals, not
young graduates and execs who are a crucial demographic
to secure the future of the sector.
Statistics on this subject are formidable. For
example, although Cyprus has the second-highest
tertiary educational attainment rate in the EU,
it has one of the lowest proportions of Science,
Technology, Engineering, and Mathematics
(STEM) graduates at a time when nearly 46% of
new jobs created in the EU require STEM skills,
according to the EU Education and Training
Monitor for 2019. There are many unskilled
workers in the local labour force. Specifically,
these are individuals aged 25-64 who are employees,
self-employed or family workers. The proportions
of those with low digital skills (32%) or
only basic digital skills (34%) are higher than the
EU average of 25% and 30% respectively. Those
reporting above-basic digital skills are fewer in
Cyprus (22%) than across the EU (36%).
The tech-talent shortage is a growing issue
and challenge worldwide. The Cyprus government
has recognised this as a key concern given
the growing importance of digital technologies
and artificial intelligence in the workplace. An
ever-increasing sector, the field of information
technology has a definite shortage in the supply
of those who can work in the field, such as coders.
Despite Cyprus already being a tech hub, industry
experts note the need to increase the supply
of competent employees to meet the demands of
tech companies relocating to the island.
The education sector has adapted to this reality
introducing curricula to supply more skilled
graduates to the labour market. The local universities
provide excellent bachelor and masters programmes
in computer sciences and technology,
consistently producing tech-savvy candidates
to join the ranks of some of the world’s leading
ICT companies. For example, the University of
Nicosia (UNIC) broke new ground in university
adoption of blockchain technology and offers the
first certified online blockchain course (MOOC)
and the world’s first master’s degree for digital
currencies. More than 25,000 students have taken
the MOOC and over 500 students have enrolled
in the MSc in digital currencies.
Cyprus has also established several Digital
Innovation Hubs (DIHs) such as the CYRIC
Digital Innovation Hub, the KIOS Innovation
Hub, the Robotics Control and Decision
Systems (RCDS) Lab at the Cyprus University of
Technology, and the Entrepreneurship Centre at
the University of Cyprus. These DIHs are active
in various market segments, such as agriculture,
health, construction, transport, manufacturing
and energy, and in a wide range of technological
areas, including AI, Big Data, cloud computing
and cybersecurity. The AI Expert Group considers
the creation of a (virtual) AI DIH with dedicated
AI research programs that could serve as a
platform where the scientific and business community
could access and share knowledge.
To entice more
international talent from
non-EU countries to launch
innovative ventures, Cyprus
has extended its Start-Up
Visa scheme until May 2021.
Cyprus has taken
a firm stance
in establishing
AI as a driving
force for growth
and increased
productivity, and
an opportunity
to transform
its economy.
130 Country Report CYPRUS 2020