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- Cyprus ranked 34th in the StartupBlink 2026 rankings, recording the largest improvement in Europe for the third consecutive year.
- Between 2023 and 2026, the Research and Innovation Foundation issued 95 funding calls worth €165 million and signed 575 contracts worth €105 million.
- RIF support helped create more than 700 jobs, 187 collaboration networks, and attract over €47.2 million in private investment between 2021 and 2025.
- The government is preparing a new National Research and Innovation Strategy through 2033 to coordinate priorities and measures for the coming years.
Cyprus’ technology sector now contributes around 15% of the country’s gross domestic product (GDP), while its start-up ecosystem has expanded significantly since 2020, President Nikos Christodoulides said.
Speaking at the 19th Cyprus Innovation Awards and the Research and Innovation Foundation’s (RIF) 2025 Research Awards on Monday, Christodoulides said economic growth, falling public debt and responsible fiscal management had strengthened the country’s prospects.
He also highlighted Cyprus’ return to the international credit rating A category for the first time since 2011, attributing the progress to the country’s economic performance and fiscal policies.
Cyprus climbs global start-up rankings
Christodoulides said the country ranked 34th worldwide in the StartupBlink 2026 rankings, recording the largest improvement in Europe for the third consecutive year.
He argued that the next challenge was to build on the country’s economic stability by improving productivity and competitiveness through investment in knowledge, technology and specialised skills.
The government aims to create more high-quality jobs, expand opportunities for young people and ensure that economic growth delivers tangible benefits to society.
The President described research, innovation and technological development as central to the effort to establish Cyprus as a regional technology and innovation hub.
Research funding exceeds €165 million
Christodoulides highlighted the role of public funding in supporting researchers, start-ups and established businesses.
Between 2023 and 2026, RIF issued 95 funding calls with a total budget of €165 million and signed 575 contracts worth €105 million, according to the President.
He said the funding had supported the wider innovation ecosystem, contributing to the creation of more than 700 jobs and 187 collaboration networks between research organisations and businesses.
Between 2021 and 2025, RIF programmes also helped attract more than €47.2 million in private investment.
Under the Disrupt and Boost blended-financing programmes, 14 businesses received €12 million in public funding and attracted a further €16.5 million in private investment.
Cyprus researchers secure European funding
The President pointed to the achievements of two University of Cyprus researchers who secured a combined €3 million from the European Research Council in September.
Both researchers had previously received €100,000 each through RIF’s VISION ERC programme, which supports researchers preparing competitive applications for European funding.
Christodoulides said the example demonstrated how targeted investment in research excellence could generate further opportunities.
He added that funding secured by Cypriot organisations through the EU’s Horizon Europe programme was expected to exceed €500 million.
Government expands support for AI and technology
The government is directing funding towards strategic sectors, including advanced digital technologies, clean technologies and biotechnology.
Through the STEP programme, it is supporting the creation and upgrading of production lines for innovative products. The AI in Government programme, meanwhile, funds artificial intelligence solutions designed to address specific public administration needs.
Other measures include the state-backed 33East investment fund, the establishment of the Cyprus Business Development Organisation and tax incentives for investment in certified innovative businesses.
Christodoulides also highlighted the work of RIF’s Central Knowledge Transfer Office, which has provided specialised support to 364 researchers and entrepreneurs and helped 14 research organisations establish their own internal knowledge transfer offices.
The aim is to move research beyond laboratories and into commercial products, businesses and markets.
NVIDIA partnership and new international links
Cyprus is investing in national computing infrastructure through a strategic partnership with NVIDIA and participating in the European network of AI Factories through Pharos-CY.
Christodoulides said these initiatives would give universities, research centres and businesses access to advanced computing power, expertise and AI tools.
He also pointed to the establishment of the Plug and Play Innovation Centre in Cyprus, which connects local start-ups with international investors, major organisations and markets.
Another initiative, the Future Founders Academy, was launched in cooperation with Columbia University following contacts in New York in April. The programme aims to support the next generation of entrepreneurs.
The President said he would return to the United States in late November for further meetings, citing increased interest among US companies in investing in Cyprus, particularly in technology.
New national strategy planned through 2033
The Deputy Ministry of Research, Innovation and Digital Policy is preparing a new National Research and Innovation Strategy covering the period through 2033.
Christodoulides said the strategy would establish a coordinated framework of priorities and measures for the coming years.
Addressing the awards ceremony, Cyprus Employers and Industrialists Federation (OEB) president Giorgos Pantelidis said innovation became valuable when ideas were translated into practical solutions, production, employment and commercial activity.
Chief Scientist for Research, Innovation and Technology and RIF president Dimitris Skourides also stressed the importance of research and innovation in supporting Cyprus’ next phase of economic development.
The ceremony concluded with Christodoulides presenting the awards.
Also read: Cost of living: Monthly family costs and Cyprus’ most expensive city
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