Cyprus is making progress in business innovation and research funding, but attracting private investment and turning scientific discoveries into commercial products remain key challenges. Business and government leaders discussed these priorities at the 19th Cyprus Innovation Awards and Cyprus Research Awards 2025 in Nicosia.
Giorgos Pantelides, chairman of the Cyprus Employers and Industrialists Federation (OEB), said companies best positioned to compete internationally would be those able to adapt quickly to artificial intelligence, robotics and other emerging technologies. For Cyprus, a small domestic market makes flexibility, quality and effective use of technology particularly important.
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Innovation Progress And Investment Gaps
The European Commission’s 2026 European Innovation Scoreboard ranked Cyprus first in the EU for innovation activity among SMEs, up from 15th place. The country also rose from 10th to second in research and business cooperation.
However, Cyprus remains a “moderate innovator”, scoring 92.1% of the EU average, with weaknesses in venture-capital investment and business spending on research and development.
Chief Scientist Demetris Skourides, chairman of the Research and Innovation Foundation (RIF), said closer cooperation between universities, research centres and businesses is essential to turn scientific knowledge into economic and social benefits.
Cyprus secured 17 European Research Council (ERC) grants in the current programming period, compared with 12 in the previous one. Successful applications from early-career researchers increased from two to five. The country now records 5.1 ERC grants per million residents, above the European average of 4.2.
University of Cyprus researchers Maria Kalli and Myrofora Panayi secured a combined €3 million in European funding after receiving €100,000 each through RIF’s VISION ERC programme. Other achievements include successful ERC applications by Triantafyllos Stylianopoulos and Stavroula Constantinou, as well as an ERC Synergy-funded cancer research project led by University of Pennsylvania professor Costas Koumenis, based in Cyprus.
The government is also seeking to attract scientists from abroad through initiatives such as Minds in Cyprus. Skourides said around 8.3% of active researchers at Cypriot universities rank among the world’s top 2% of scientists.
Public Funding Aims To Unlock Private Capital
President Nikos Christodoulides said technology contributes around 15% of Cyprus’s GDP, but stressed that economic growth must translate into higher productivity and stronger competitiveness.
Between 2023 and 2026, RIF launched 95 funding calls worth €165 million, resulting in 575 contracts totalling €105 million. The programmes contributed to more than 700 jobs and 187 cooperation networks connecting businesses with research organisations.
RIF initiatives attracted more than €47.2 million in private investment between 2021 and 2025. Its Disrupt and Boost schemes provided €12 million in public funding to 14 businesses, which subsequently secured another €16.5 million from private investors.
A new BOOST funding round is expected in early December, with an initial budget of €1.2 million. Eligible companies could receive grants of up to €300,000 if they secure a binding agreement for at least €200,000 in private equity investment. The first deadline is expected to be April 9, 2027.
RIF is also consulting businesses and researchers on its 2028–2034 funding programmes until November 2, focusing on research commercialisation, infrastructure, private investment and skills.
International Partnerships And Future Priorities
Cyprus is strengthening international technology links through cooperation with NVIDIA on advanced computing infrastructure, participation in the European AI Factories network through Pharos-CY, and the Plug and Play innovation centre.
The Future Founders Academy, developed with Columbia University, aims to connect young entrepreneurs with international expertise. Meanwhile, the government is preparing a national research and innovation strategy through 2033, prioritising artificial intelligence, biotechnology, advanced digital technologies and clean technologies.
Commercialisation Remains The Key Challenge
Since 2006, OEB’s innovation awards have recognised practical applications of innovation across manufacturing, services, the primary sector and social innovation. They are now part of European SME Week.
Cyprus has improved its performance in SME innovation and European research funding. The next step is to turn those gains into commercially successful products, attract more private capital and increase productivity. As Pantelides argued, the country’s competitiveness will depend not on business size alone, but on how effectively companies turn knowledge and technology into value.







