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Cyprus’ Research And Development Spending Among Lowest In EU Despite Decade Of Growth

by THEFUTURE.TEAM

December 12, 2024

Cyprus remains one of the EU’s lowest spenders on research and development (R&D) as a share of GDP, despite recording gradual growth over the last decade. According to fresh data from Eurostat, Cyprus’s R&D intensity — the proportion of GDP dedicated to R&D — rose from 0.48% in 2013 to 0.68% in 2023.

While this increase signals progress, Cyprus still lags behind most of its European counterparts. Its R&D intensity remains well below the EU average of 2.2%, a figure that has stayed consistent since 2022.

R&D Expenditure on the Rise

In monetary terms, Cyprus’s R&D spending reached €213.5 million in 2023, up from €207 million in 2022 and significantly higher than the €87.5 million recorded in 2013. The steady growth in expenditure highlights the country’s ongoing, albeit modest, efforts to support research and innovation.

Across the EU, R&D spending saw a 6.7% rise in 2023, reaching €381.4 billion, up from €357.4 billion the previous year. Compared to 2013, EU spending on R&D increased by 57.9%, reflecting the bloc’s broader push toward technological development and innovation.

Cyprus vs. the EU: A Stark Contrast

Although Cyprus has made progress, it still ranks among the EU’s five lowest performers in terms of R&D intensity. Other countries in this group include Romania (0.5%), Malta (0.6%), Bulgaria (0.8%), and Latvia (0.8%). In contrast, Sweden (3.6%) leads the bloc, followed by Belgium and Austria (3.3% each) and Germany and Finland (3.1% each).

From 2013 to 2023, R&D intensity increased in 19 EU countries. The largest gains were seen in Belgium (+1 percentage point), Poland (+0.7 pp), and Greece (+0.7 pp). Cyprus, with its +0.2 percentage point increase, made more modest progress in comparison.

Where Does EU R&D Funding Go?

In 2023, the EU’s R&D expenditure of €381.4 billion was largely driven by the business sector, which accounted for 66% of total spending (€253.1 billion). The higher education sector followed with 21% (€81.7 billion), while the government sector accounted for 11% (€41.0 billion). The non-profit sector had the smallest share at just 1% (€5.5 billion).

Cyprus’s R&D trajectory shows signs of growth, but the country faces a steep climb to catch up with the EU average. Despite a decade of incremental increases, Cyprus remains one of the bloc’s lowest spenders relative to GDP. With R&D playing a crucial role in driving technological advancement and economic competitiveness, the need for accelerated investment in this sector has never been more urgent.

New Decrees For Blue Card And Foreign Students: Key Changes And Implications

by THEFUTURE.TEAM

December 20, 2024

The Ministry of Labor and Social Insurance has announced a series of new measures aimed at addressing the increasing demands of Cyprus’ labor market. These initiatives are designed to attract highly skilled professionals from third countries and broaden employment opportunities for foreign students in select fields, as outlined in the recent Decrees published in the Official Gazette of the Republic.

Attracting Skilled Professionals

One of the key updates is the introduction of a minimum annual salary for foreign professionals, which has been set at €43,632, 1.5 times the average gross annual salary in Cyprus. This salary threshold applies to individuals coming to work in sectors such as Information and Communication Technologies (ICT), pharmaceuticals for research purposes, and maritime industries (excluding skippers and crew).

Expanded Employment Options For Foreign Students

The new regulations also provide an update on the employment rights of foreign students. From December 2024, students from third countries will be able to work in Cyprus, with the new rules replacing the previous March 2024 start date.

Students studying ICT who have completed their first academic semester will be eligible to work in occupations related to their field of study, thereby gaining practical experience while pursuing their education.

In response to critical sector shortages, the regulations also clarify the specific occupations and salaries that Blue Card holders—third-country nationals—will be eligible for in Cyprus. The Blue Card, in line with the European Directive, allows highly skilled professionals to live and work in EU member states.

Strengthening The Labor Market and Economy

These updates are expected to bolster the supply of specialized workers in key sectors, addressing existing gaps and promoting the continued growth of Cyprus’ economy. At the same time, the new measures offer foreign students enhanced opportunities for professional development, facilitating their seamless integration into the country’s workforce.