President Nikos Christodoulides said Cyprus' economic growth continues to exceed the European average, while prudent fiscal management and lower public debt are strengthening the country's prospects.
Speaking at the 19th OEB Cyprus Innovation Awards and the 2025 Cyprus Research Awards organised by the Research and Innovation Foundation (RIF), Christodoulides highlighted the role of research, innovation and technology in supporting economic development.
He said Cyprus' improving economic performance has been recognised by international rating agencies, pointing to the country's recent return to the A rating category for the first time since 2011.
Technology now accounts for 15% of GDP
According to the president, recent years have seen stronger economic stability and credibility, creating the conditions for a more competitive and resilient economy.
The focus now, he said, is on boosting productivity and competitiveness through investments in knowledge, technology and highly skilled workers.
Christodoulides said Cyprus has developed a dynamic ecosystem comprising universities, research centres, startups, innovative businesses and expanding international partnerships.
He noted that the broader technology sector now contributes around 15% of GDP, while Cyprus' startup ecosystem has grown significantly since 2020.
Cyprus ranks 34th globally in the 2026 StartupBlink rankings and has recorded the strongest growth in Europe for a third consecutive year, he said.
Research funding and jobs
The president highlighted the recent success of two researchers from the University of Cyprus, who secured a combined €3 million in funding from the European Research Council (ERC) after previously receiving €100,000 each through the RIF's VISION ERC programme.
He described the achievement as evidence of the multiplier effect created by targeted investment in research excellence.
Funding awarded to Cypriot organisations through the Horizon Europe programme is also expected to exceed €500 million, he said.
For the period 2023-2026, the RIF launched 95 calls for proposals with a total budget of €165 million and signed 575 contracts worth €105 million.
According to Christodoulides, those resources supported the creation of more than 700 jobs and 187 collaboration networks linking research organisations and businesses.
Between 2021 and 2025, RIF programmes also helped attract more than €47.2 million in private investment.
Through the Disrupt and Boost blended-finance programmes, 14 companies received €12 million in public funding and secured an additional €16.5 million in private investment.
Investment in AI and innovation
The president said government resources are being directed towards strategic sectors, including advanced digital technologies, clean technologies and biotechnology.
He highlighted the AI in Government programme, which supports the development of artificial intelligence solutions for public-sector challenges.
Additional initiatives include the state-backed 33East investment fund, the establishment of the Cyprus Enterprise Development Organisation, and tax incentives for investments in certified innovative businesses.
Christodoulides stressed the importance of turning research into commercial products and services.
He said the RIF's Central Knowledge Transfer Office has already provided specialised support to 364 researchers and entrepreneurs, as well as 14 research organisations developing internal knowledge-transfer structures.
New AI infrastructure and international partnerships
The president also pointed to new national computing infrastructure being developed through a strategic partnership with NVIDIA and Cyprus' participation in the European AI Factories network through Pharos-CY.
The infrastructure is expected to provide universities, research centres and businesses with access to advanced computing power, expertise and artificial intelligence tools.
Christodoulides said business missions to countries including India and Kazakhstan had already produced tangible results.
He announced plans to return to the United States in late November for investment meetings, citing strong interest from American technology companies in Cyprus.
The president also referenced the establishment of the Plug and Play Innovation Centre in Cyprus and a partnership with Columbia University that led to the launch of the Future Founders Academy, aimed at developing the next generation of entrepreneurs.
Meanwhile, the Deputy Ministry of Research, Innovation and Digital Policy is preparing a new National Research and Innovation Strategy extending to 2033.
Innovation key to competitiveness
George Pantelides, president of OEB, said innovation is valuable only when it moves beyond ideas and into production and the marketplace.
He described innovation as essential for competitiveness, sustainable growth, productivity and international expansion.
Meanwhile, Chief Scientist for Research, Innovation and Technology and RIF chairman Demetris Skourides said Cyprus has made significant progress in research and innovation, describing both sectors as strategic requirements for the country's next phase of development.
The president later presented the awards.
Source: CNA
