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RIO Country Report Cyprus 2016

The annual RIO Country Report offers an analysis of the R&I system in Cyprus, including relevant policies and funding, with particular focus on topics critical for EU policies. The report identifies the main challenges of the Cypriot research and innovation system and assesses the policy response

 
 

Executive summary

Title: 
Highlights

  • Real GDP growth in 2016 is expected to be stronger and it is forecast to reach 2.0 % in 2017
  • The recovery of the Cypriot economy came from the tradable services sectors, such as tourism and professional services, supported by low prices and the depreciation of the Euro.

  • Cyprus rose from 60th place in the world rankings in 2014 to 47th place in 2015 and was one of the ten economies with the most marked improvement in upgrading the business environment.

  • In the last three years, a favourable taxation regime has been introduced for innovative companies, leading to tax-exemptions over innovation and research activities.

  • The national R&I intensity target was reported 0.50% by 2020.

  • BERD is funded to a large extent by the private sector

     

     

     

Title: 
Main R&I policy challenges

  • Intensifying knowledge transfer and commercialisation of research results. Exploitation of knowledge and research results is weak and science-business cooperation is low. The supply of venture capital or business angel funding, which would be a means to support university spin-offs after their creation, is almost negligible. At the end of 2015, a "National Policy Statement for the Enhancement of the Entrepreneurial Ecosystem in Cyprus" has been formulated. Two of the five priority axes in the statement, "Cultivating the entrepreneurial culture", and "Facilitating access to finance", constitute highly relevant aspects for improving commercialisation of research results. The establishment of a Central Technology Transfer Office (CTTO) is planned, but implementation seems to be evolving rather slowly.
  • —Strengthen and support private sector R&I activities. Business R&D spending is one of the lowest in the EU. The reasons for low private R&I investment and demand lie to a large extent in geography and the structure of the economy  and lengthy procedures  public support programmes A number of instruments have been put in place or are planned to support SMEs' investment in R&D. The Action Plan accompanying the smart specialisation strategy envisages addressing the low R&D activities of SMEs and the attraction of private sector investments in R&I more generally.
  • Intensifying knowledge transfer and commercialisation of research results. Exploitation of knowledge and research results is weak and science-business cooperation is low. The supply of venture capital or business angel funding, which would be a means to support university spin-offs after their creation, is almost negligible. At the end of 2015, a "National Policy Statement for the Enhancement of the Entrepreneurial Ecosystem in Cyprus" has been formulated. Two of the five priority axes in the statement, "Cultivating the entrepreneurial culture", and "Facilitating access to finance", constitute highly relevant aspects for improving commercialisation of research results. The establishment of a Central Technology Transfer Office (CTTO) is planned, but implementation seems to be evolving rather slowly.
Geo coverage
Report year
2016
Official publication date
Monday, 8 May, 2017
Last update: 23/06/2017 | Top | Legal notice | Contact | Search