With over €200 million invested and three consecutive years as a “Strong Innovator” in the European Innovation Scoreboard, Cyprus’ research and innovation ecosystem has gained serious momentum. At the center of this transformation is the Cyprus Research and Innovation Foundation (RIF), the national body tasked with driving policy, funding, and ecosystem growth. Under the leadership of Director General Theodoros Loukaidis, the organization has not only become more agile and efficient but has also played a critical role in positioning Cyprus as a “Strong Innovator” in the EU rankings.
In this exclusive interview with The Future Media, RIF’s Director General, Theodoros Loukaidis, now entering his second term, reflects on what’s been achieved and what it will take to ensure Cyprus remains competitive in an increasingly innovation-driven world.
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As you begin your second term as Director General of RIF, what do you see as the most important accomplishments from your first term in the role?
Over the past five years, Cyprus’ Research and Innovation (R&I) ecosystem has undergone a significant transformation, both in terms of scale and global competitiveness.
One of the key milestones was the country’s sustained recognition as a “Strong Innovator” in the European Innovation Scoreboard for three consecutive years. Most notably, the country recorded the highest performance improvement among EU member states since 2017, with a striking 39% increase.
Another major achievement is Cyprus’s ascent in global innovation rankings. This month, the country climbed five places in StartupBlink’s 2025 Global Startup Ecosystems, a clear indication of the international recognition Cyprus is now gaining.
While the success of the ecosystem is undeniable, it is equally important to recognize the remarkable progress that RIF itself has made internally. Over the past five years, RIF has transformed into an agile and efficient organization. We have become a more data-driven, evidence-based, and user-oriented institution. The time to grant has been reduced to just seven months, and payments are now provided within an average of 61 days, clear evidence of an organization that is faster, more responsive, and effective.
With your reappointment, what are your top priorities for this new term? Where will the focus be?
Exciting things are on the way, and these include more support, greater ambition, and even better results. As I begin my second term, our top priority is to secure increased funding for the next programming period, ensuring that our ecosystem has the financial tools and value-added services it needs to compete and collaborate on a European and global scale. We are already working closely with national authorities and international partners to unlock additional resources and strengthen the strategic positioning of Cyprus.
Despite the significant simplifications introduced over the past five years, we now stand at a pivotal moment to go even further. With the upcoming launch of our new “Rules for Participation,” we have a unique opportunity to streamline our procedures and reduce complexity. As part of this evolution, we will introduce a new online portal which will be simpler, faster, and more intuitive, ensuring that our programmes become even more accessible. Equally important is the digital transformation of RIF itself. We will pursue this by streamlining processes and improving the overall user experience.
Another major focus will be on enhancing the effectiveness and efficiency of our investments, placing an even stronger emphasis on impact. Our focus extends beyond the volume of funding allocated. It is fundamentally about the outcomes these investments generate: new jobs, breakthrough technologies, stronger public and private services, and a more resilient economy, to name but a few. We will be implementing improved monitoring and evaluation mechanisms to track outcomes, inform future strategy, and maximize the return on public investment.
Above all, my message going forward is this: RIF is entering a new era. What we have achieved so far is important, but it is only the beginning. We are no longer just building momentum — we are setting the pace.
Since 2016, RIF has allocated substantial funding to research and innovation projects. Could you highlight a few of the programs that you believe had the strongest impact?
Since 2016, RIF has invested €207 million into the country’s R&I ecosystem, funding over 515 beneficiaries, including universities, research institutions, businesses, and public-sector entities.
From 2021 onwards, we adopted a more strategic, impact-driven funding model, which contributed to broadening participation across different sectors and stakeholder groups. During this period, we successfully leveraged €37 million in private investment for every €100 million in public funding, a more than twofold increase compared to the €17 million attracted for every €100 million during the 2016–2020 period. This shift translated into tangible results, with an average of 238 new jobs created annually, marking a notable rise from the 181 jobs per year recorded in the previous funding cycle. Importantly, we have been successful in attracting new participants in our programmes, with 182 entities receiving funding for the first time, a 55% increase in new beneficiaries. Our portfolio spans a comprehensive range of programmes tailored to every stage of the research and innovation lifecycle. Notable examples include:
- Pre-Seed, Seed, Innovate, and Fast Track Innovation: Empowering early-stage startups as well as established enterprises to bring novel ideas to the market.
- Disrupt: Cyprus’s first blended finance initiative that has attracted €12.5 million in venture capital, setting a new benchmark for innovation finance.
- Boost: another blended finance scheme currently open, designed to follow the momentum of Disrupt.
To foster deeper academia-industry links, we launched two new funding programmes in the 2021-2027 cycle. The Co-Develop and PhD in Industry that facilitate joint development of solutions and support upskilling and reskilling in the private sector.
On the research excellence front, the Excellence Hubs, Post-Doc, and Vision ERC calls continue to strengthen Cyprus’ scientific output, while providing young researchers the opportunity to lead competitive, high-impact projects.
Looking ahead to 2025, one of the key priorities is to support the production and commercialization of innovative products and services in strategic areas such as digital and deep tech, clean technologies, and biotechnology through the STEP programme.
Over the years, how has RIF adjusted its funding approach to better support both academic research and private sector innovation?
Over the past five years, RIF has implemented a strategic funding model designed to balance support between research excellence and market-driven innovation. Our funding allocation plan for the 2021–2027 period is structured around five strategic priorities, each addressing a key pillar of the ecosystem: Research, Collaboration and Knowledge Transfer, Innovation, Internationalization, Infrastructures, and Skills.
This framework ensures that both the academic and industrial communities are empowered to contribute meaningfully to Cyprus’ R&I growth. Between 2016 and May 2025, RIF allocated more than €207.4 million to 515 beneficiaries across the spectrum, ranging from universities and research organizations to startups, established companies, local authorities, and others. A notable development is the increasing share of funding directed toward the private sector.
As a result, business participation now accounts for 45% of total funding, a significant rise from 29% in 2019.
This evolution reflects a deliberate shift toward inclusivity and real-world application, ensuring that innovation is translated into tangible economic and societal impact, laying the groundwork for a diverse and resilient R&I ecosystem.
We’re seeing a lot of talk around AI and digital tools. How is RIF helping companies and researchers in Cyprus make the most of these technologies?
AI is rapidly reshaping industries and redefining services. While adoption in Cyprus is still at an early stage, RIF is actively working to accelerate this transition across both the private and public sectors. A key upcoming initiative is the “AI in Government” programme to be announced soon in collaboration with the Deputy Ministry for Research, Innovation and Digital Policy. This is a €5 million funding scheme designed to catalyze the development of AI-powered solutions tailored to the needs of the public sector. By bridging innovation with public service delivery, this programme aims to demonstrate how AI can enhance efficiency, responsiveness, and citizen engagement while also creating new opportunities for local tech companies and researchers.
Beyond the public sector, we are seeing strong and growing interest from the research and business communities. The number of research proposals integrating AI technologies has increased significantly in recent funding cycles. To support this momentum, our 2024–2025 funding package of over €45 million includes multiple opportunities for researchers and entrepreneurs to pursue AI-driven innovation.
Attracting and retaining local talent is always a challenge. What is RIF doing to support young researchers and professionals who want to build their future here in Cyprus?
Attracting, developing, and retaining talent is a cornerstone of RIF’s long-term strategy. We are deeply committed to creating meaningful opportunities for young researchers and professionals to thrive in Cyprus, both by enhancing career prospects and by actively contributing to the state’s broader efforts to reverse brain drain and promote brain gain through targeted initiatives.
A key initiative is the Research and Innovation Internships Programme, launched for the first time in 2022. This programme offers university students hands-on experience by placing them in innovative companies during the summer months. Beyond skill development, it builds linkages between young talent and businesses, helping young people envision a future for themselves within Cyprus’s growing innovation landscape. The programme continues in 2025, with applications already in progress.
Another flagship initiative, first launched in 2022, is the PhD in Industry scheme, which enables young talent to pursue their doctoral studies while working in an innovative company. This dual experience equips them with skills that are directly relevant to the job market and increases their long-term employability.
To further build a critical mass of high-potential researchers, we are preparing to launch a new postdoctoral fellowship programme to support talent in all frontier fields, including AI, sustainability, and biotechnology.
Collaboration between universities, companies, and the state is critical but not always easy. What’s working well in Cyprus, and what still needs attention?
Collaboration between academia, industry, and the state is essential to building a strong, innovation-driven economy. In Cyprus, while progress has been made, much more is needed, particularly when it comes to aligning academic programmes with industry needs.
In recent years, RIF has made substantial progress in building a more connected, collaborative R&I environment in line with the country’s Strategy for R&I 2024-2026. A standout example is RIF’s Co-Develop programme, which has quickly become a flagship initiative. By bringing research organizations and companies together to co-design and co-implement solutions to real-world challenges, the programme not only strengthens business competitiveness but also delivers tangible benefits to society. The success of this model reflects a growing appetite for applied research with direct societal and economic impact.
In 2023, we took a further step forward by funding five major strategic infrastructure projects, each designed with built-in mechanisms to enable long-term public-private collaboration. These projects represent a shift in how we structure national R&I investments, embedding collaboration from the outset rather than treating it as an afterthought.
Another step in this direction is the upcoming launch of a new €7.5 million Open Access Research Infrastructures Programme to strengthen national research capabilities. All funded infrastructure will operate under an open access model, ensuring broad availability to both research and business communities. This initiative aims to boost the quality of scientific research, foster industry-academia collaboration, and accelerate cross-sector innovation.
At the same time, RIF’s Central Knowledge Transfer Office is playing a crucial role in enabling the commercialization of research, providing specialized services that accelerate the transfer of knowledge from academia to the private sector.
That said, continued progress requires deliberate action. We must deepen trust, reduce administrative barriers, and align incentives across sectors to ensure collaboration is embedded in the way our national ecosystem operates.
Finally, what message would you like to share with the broader research community and the public as you begin this new chapter at RIF?
As I begin this new chapter at RIF, our ambition is to further transform RIF into one of the most modern, effective, and forward-looking funding organizations in Europe. This vision is rooted in impact, evidence, and the maximization of value for the taxpayer.
We aspire to be a pioneering organization that leads progress. One that creates real value for society, adapts swiftly to the changing needs of the ecosystem, and delivers meaningful outcomes.
This means simplifying our procedures and participation rules wherever possible, upgrading our digital services, and grounding our decisions in data, analysis, and measurable indicators. It also means empowering RIF’s staff with the right skills and mindset to keep RIF at the forefront of developments.
Our achievements so far are recognized, and we are supported by a clear and growing commitment from the State to move forward with ambition. If each of us does our part with excellence, I do not doubt that we can position Cyprus as a true regional innovation hub. The whole is, after all, greater than the sum of its parts.
