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Cyprus - European Semester

The Europe 2020 Strategy set a 3% objective for R&D intensity for the EU as a whole and most Member States have adopted a national R&D intensity target for 2020. The European Semester, the EU's annual cycle of economic policy coordination, undertakes a detailed analysis of the EU Member States’ plans for R&I investment and structural reforms of national R&I systems, and provides them with recommendations.

The Annual Growth Survey 2016 highlighted that investing in R&I at national level is critical for growth and that therefore Member States should continue to prioritise public investments in R&I, ensuring their efficiency and leverage with regard to business investment. Member States need to keep up the pace of reforms to ensure an investment-friendly environment. See more information about the European Semester.

 
 

Research and Innovation Performance

The European Semester supports Member States' structural reforms in different policy areas to promote jobs, growth and investment. Research and innovation play a key role in this context. That is why the Commission gives recommendations to and closely work with the Member States to increase the performance of their national R&I systems.
Have a look and see how the country is performing.

Report year
2016
Document type
Exercise type
R&I performance
Geo coverage
Publication date
10 November 2016

European Semester Country Report

R&D investment has remained modest over the past years in Cyprus. In 2015, total R&D intensity stood at 0.46 % of GDP, with public R&D intensity accounting for 0.31 % of GDP. R&D carried out by the private sector was 0.08 % of GDP, which is the lowest across all Member States. These very low values illustrate the nascent and significantly underdeveloped nature of the R&D system in Cyprus. This can notably be explained by structural limitations such as Cyprus' remote location, small market size, and service-oriented economy. The low levels of R&D hinder the ability to diversify the Cypriot economic structure and boost productivity.

Although some measures have been adopted to redirect scarce public funding towards priority areas, there are some shortcomings in R&D governance and evaluation of funding. Cyprus has adopted a series of policy instruments to promote R&D. For example, a scheme to support private R&D investment has been introduced and the government plans to set up a National Knowledge Transfer Office. However, Cyprus does not sufficiently monitor and evaluate the structuring and steering of public research. Sustained monitoring is necessary to boost science-business linkages and ensure the relevance of public research. Overall, reforms undertaken by Cyprus go in the direction of building a more robust R&D policy system.

Report year
2017
Document type
Exercise type
European Semester Country Report
Geo coverage
Publication date
23 February 2017

European Semester - Country specific recommendation

No Country specific recommendation for Cyprus on research and innovation in 2016.

Horizon 2020 Policy Support Facility (PSF)

Last update: 22/01/2019 | Top | Legal notice | Contact | Search