Cyprus is introducing a new performance-based funding model for publicly financed research organizations, linking state support to measurable results for the first time.
A New Framework For Research Funding
Approved by the Cabinet on Wednesday, the new mechanism establishes a more structured framework for funding public research organizations. Deputy Minister of Research, Innovation and Digital Policy Nikodimos Damianos said the system is expected to take effect in early 2027.
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First Phase Targets Centres Of Excellence
The first phase will cover Centres of Excellence co-financed through the Horizon Europe Teaming for Excellence programme with national and European funding.
According to Damianos, the objective is to preserve and further develop the research infrastructure, expertise and capabilities built in recent years, while supporting their transition into sustainable, long-term institutions under a formal funding framework.
Funding Tied To Performance Indicators
Under the new model, funding will be linked to performance against predefined indicators and targets. Organizations will be assessed across 18 indicators grouped into six areas: the research environment, internationalisation, scientific excellence, research performance, knowledge transfer and socio-economic impact.
Performance will be evaluated annually, while funding allocations will be reviewed every three years. The framework also introduces fiscal safeguards, including funding caps, assessments of each organisation’s actual financial needs and consideration of any other institutional state funding already received.
Positioning Research As A Strategic Public Investment
Damianos said the reform lays the groundwork for a new model of institutional support for research and innovation, aimed at strengthening scientific excellence and competitiveness while ensuring the transparent and efficient use of public funds.
He added that the framework is intended to support long-term benefits for both the Cypriot economy and society.
