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Chief Scientist’s Roadmap To Make Cyprus A Regional Research And Innovation Hub by 2035

In a bold vision for Cyprus, Chief Scientist Demetris Skourides presented a comprehensive roadmap to establish Cyprus as a regional hub for research, innovation, and technology by 2035. The strategy, developed through extensive consultation with over 650 stakeholders, aims to streamline processes, enhance transparency, and improve the overall research and innovation ecosystem.

Key initiatives include the introduction of a new grants management system by 2025 to reduce administrative burdens and promote scientific work and commercialization. The roadmap also emphasises the importance of public-private partnerships, with recent programs increasing collaboration between research organisations and industry.

Cyprus has maintained its 10th position in the European Innovation Scoreboard for three consecutive years, reflecting the country’s growing innovation capacity. This is supported by significant funding increases, with €177.25 million allocated for competitive funding between 2021-2027, a 34% rise from the previous period.

Public universities and research institutes have been pivotal in securing prestigious European Research Council grants, showcasing Cyprus’ research excellence. Notably, improvements in the operations of the Research and Innovation Foundation have significantly reduced the average time to pay and contract processing times.

Furthermore, the strategy includes targeted funding for research excellence, collaboration, innovation, and infrastructure. Specific focus areas include ICT, green transition, energy, shipping, agrifood, health, advanced materials, and environment.

Skourides also highlighted the importance of international collaborations, citing recent engagements with Japanese and international organisations to foster global partnerships. The roadmap sets a clear path for Cyprus to enhance its research and innovation landscape, positioning the country as a leader in the region by 2035.

Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.

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