How the innovation ecosystem in business and research was created
The last five years have been a period of acceleration for Cyprus' research and innovation ecosystem. From 1 January 2021 to 31 December 2025, the Research and Innovation Foundation acted as a key mechanism for funding, interconnection and support, attempting to transform research, technological development and business innovation into a real economic and social footprint, as noted by Theodoros Loukaidis, General Manager and Dimitris Skouridis, Chairman of the Board of Directors.
The RIF's five-year review captures an ecosystem that attempts to move from the fragmented effort stage to a more coherent, collaborative and internationally competitive operation. With 142 calls for proposals, an available budget of €206.8 million, contracts with a total value of €153 million. and 797 contracts signed, the period 2021–2025 recorded significant mobility in sectors ranging from health, artificial intelligence and energy to shipping, agri-food, cybersecurity and open access infrastructure.
At the heart of this effort is the ambition to build a competitive knowledge-based economy. As evidenced by the evidence, the RIF was not limited to the role of a funding organization, but sought to act as a catalyst for the creation of partnerships, the transfer of knowledge, the commercial exploitation of research and the internationalization of Cypriot businesses and research institutions.
From vision to impact
The key narrative of the five-year period is the transition from vision to measurable impact. Through funding programmes and support services, the RIF has contributed to the development of new products, services, research results and technological solutions that attempt to respond to real needs of the economy and society.
This support is reflected in 1,330 new jobs, 649 businesses supported and €47.2 million. leveraged private investment. According to the data in the review, for every €10 of RIF's public money, they mobilised €3.1 of private money, demonstrating the gradual involvement of private capital in research and innovation projects.
The budget allocation also shows the balance between businesses and research organizations. 49.6% were directed to businesses, 48.2% to research organizations and 2.1% to other categories. This picture shows that financial support was not limited to the academic or research community, but extended to companies seeking to integrate innovation into their products, services and business models.
Cyprus rises in the rankings
The dynamics of the five-year period are also linked to the improvement of Cyprus' international image in the field of innovation. The country is ranked 25th in the world, up from 29th in 2020, while it is ranked 16th internationally for innovation results. At the same time, it is classified as an "innovation leader", which highlights the progress made in performance and effectiveness indicators.
The image of the startup ecosystem is also of particular importance. Cyprus is listed as the fastest-growing startup ecosystem in the European Union for the second year in a row, according to the 2025 Global Startup Ecosystem Index. It is also in the top 40 global ecosystems, having climbed 15 places since 2020, and is ranked as the second best ecosystem for small states with a population of less than two million.
These numbers show that Cyprus is attempting to move from the periphery of European innovation to a more active role, taking advantage of its small size, its flexibility and the possibility of closer cooperation between the state, businesses, universities and research centers.
The sectors that attracted interest
The contracts signed are allocated to key priority areas of the smart specialisation strategy. Digital technologies hold the first place with 19.7%, followed by health with 17.1%, the environment with 12.2%, renewable energy sources with 10.2% and agri-food with 8.3%. Shipping and maritime transport account for 2.8%, while a significant percentage also concerns other or unavailable sectors.
This picture confirms that the Cypriot ecosystem moves in fields of high technological and social importance. Health and life sciences were highlighted through projects on immunotherapy in pancreatic cancer, nanocarrier melanoma treatment, harnessing AI to predict personalized cancer treatments, and early detection of liver cancer.
In engineering and digital technologies, projects include fair AI systems, smart surfaces for more reliable wireless networks, computational simulations for fundamental physics, and AI-driven business intelligence platforms. In the social sciences and humanities, projects range from securing the dairy chain to cultivating critical thinking and reducing bias in education.
The major beneficiaries and the cooperation
In terms of research organizations, the University of Cyprus appears as the largest beneficiary with €28.48 million, followed by the Cyprus University of Technology with €8.74 million, the Cyprus Institute with €8.14 million, the Frederick Research Center with €8 million. and CMMI with €3.84 million.
In business, the largest beneficiaries are CY.R.I.C. with €3.02 million, Sk EMBIO Diagnostics Ltd with €2.79 million, NIPD GENETICS BIOTECH LIMITED with €1.98 million, AMDM with €1.90 million. and EnergyIntel Services Ltd with €1.70 million.
Cooperation is a central element of the five-year period. The average number of partners per cooperation network is 2.7, while 278 unique national cooperation networks and 751 partners in national networks were recorded. At the same time, 127 foreign research organisations participated in projects funded by the RIF, while the associations of enterprises and research organisations within cooperation networks reached 266.
These figures show that research and development are now seen as a collaborative field, in which knowledge production, technological application and commercial exploitation cannot function in isolation.
Knowledge Transfer: From the Laboratory to the Market
Knowledge transfer and cooperation played a key role in the five-year period. The total budget of contracts in this axis amounted to €47.5 million. Of particular importance was the launch of the Cyprus Knowledge Transfer Office in March 2023, with the aim of supporting the transfer of research results into marketable innovations and strengthening cooperation between research organizations and industry.
CKTO's services include intellectual property ownership assessment, patent mapping, intellectual property protection strategy, commercial opportunity assessment, technology marketing, and agreement support.
To date, 104 CKTO services have been completed, which contributed to 10 patent filings. At the same time, 31 enterprises and 9 research organizations benefited from the services, while 12 research organizations were approved as local knowledge transfer offices. The Innovation Factory training provided specialized training to 172 professionals.
The emphasis on knowledge transfer captures a crucial shift: research is not only evaluated based on its scientific value, but also on its ability to be transformed into solutions, products, and services with practical use.
Innovation with commercial targeting
In the area of innovation, the RIF launched 14 calls, with a total contract budget of €31 million. The projects supported cover a wide range of applications, from health and cybersecurity to shipping, education, FinTech and the real estate market.
NIPD GENETICS BIOTECH LIMITED is developing liquid biopsy for the early detection of cancer recurrence, aiming at a non-invasive blood test that identifies cancerous DNA before it becomes visible in imaging. Sk EMBIO Diagnostics Ltd upgrades air quality platform for sustainable buildings by connecting sensors to energy systems. Odyssey Consultants Ltd promotes advanced DNS cyber protection through a cloud solution that detects and blocks threats in real-time.
The innovation extends to more niche markets as well. Nodes & Links Labs is developing digital platform to manage large construction projects, Mirror3D Lab Ltd is promoting smart training platform for cyclists, while RSL Revolutionary Labs LTD is developing skin care products for cancer patients.
In the realm of data and markets, Ask Wire by Wire Services Ltd leverages artificial intelligence and real estate data in Cyprus, Greece, and Romania. ENGINO – NET LIMITED is developing a scalable training robot for STEM skills, while Columbia Shipmanagement Ltd is leveraging data and artificial intelligence for safer, greener, and more efficient shipping.
New financial tools
The five-year period was also marked by the introduction of new funding programs. DISRUPT combined public money with venture capital investments to scale up innovative businesses. STEP focused on production lines for innovative products. AI in government is about using artificial intelligence to address key public sector challenges.
Fast Track Innovation aimed to accelerate the development and market entry of innovations, while BOOST sought to reduce the risk of investing in innovative companies. CO-DEVELOP brought together businesses and research organizations to co-develop solutions, while Commercial Proof of Concept – Energy focused on the commercial exploitation of energy technologies.
At the same time, programs such as PhD in industry, NCC-Cybersecurity, Bridge2Horizon and Vision ERC aimed to connect education, cybersecurity, internationalization and excellence with the needs of the market and research organizations.
Internationalization and Horizon Europe
Internationalization was one of the main pillars of the period. The total contract budget amounted to €20.8 million, while the RIF led 18 national missions abroad, aiming to promote the Cypriot ecosystem, create partnerships and connect businesses and researchers with international markets.
In Horizon Europe, the EU's net contribution to Cyprus amounted to €351.8 million, with 246 unique participants. Notable successes include projects by the Cyprus Cancer Research Institute, the Cyprus Institute and the University of Cyprus, including in fields such as next-generation cancer treatments, photonic systems, networks of young researchers for critical cyberphysical systems, and quantum annealing.
The international dimension confirms that the Cypriot ecosystem does not develop in isolation. On the contrary, it seeks to participate in European and international networks, to draw know-how and funding and to place Cypriot teams in highly specialized fields.
Infrastructure for the next stage
Investment in infrastructure was also a key focus. The RIF supported 5 strategic infrastructures, 10 small-scale infrastructures and 17 open access infrastructures, with a total investment of €25 million and the creation of more than 140 highly skilled jobs.
Infrastructure spans fields such as space, shipping, health, environment, and agrotechnology. The Cyprus Space Exploration Organisation promotes the creation of the Cyprus Space Research and Innovation Centre, with the aim of making Cyprus a regional hub of space technology. CMMI is developing a center for maritime digitalization and smart shipping. LINAC-PET SCAN OPCO LTD promotes innovation hub in personalized healthcare.
At the same time, projects such as CyMETEO for meteorological capabilities, PHENOTYPOS for plant phenotyping and infrastructure for microplastics, advanced materials, neuroscience and soil movement mapping show that the investment is not only about current research, but also about the capabilities that Cyprus will need in the coming years.
People, skills and community
The ecosystem is not only built with finance and infrastructure, but also with people. In the five-year period, 61,349 adults participated in RIF-funded events, while 17,869 students participated in events of the Foundation and partners. As of 2022, 349 university students were placed in 289 companies through research and innovation internships.
Public engagement, European Researchers' Night, The Bash, Partner Day and Open Day, as well as the awards for excellence in research and innovation, act as bridges between the research community, businesses, pupils, students, investors and the state.
Education and capacity building have been a crucial element. In addition to the 104 integrated CKTO services and the training of 349 students, 18 companies were supported in the development of new products and 5 innovation support structures were funded.
A more efficient organisation
The review also presents the internal performance of the RIF. In the period 2021–2025, payments to the ecosystem amounted to €151 million, compared to €57.8 million. 2016–2020. This is a 2.6-fold increase in payments to the ecosystem.
At the same time, the cost per million euros paid decreased by 48%, while a fourfold operational improvement is recorded. The evaluation time is 3–4 months, the review and payment time is 60–70 days, and the contracting time is a maximum of three months.
The RIF is staffed by 58 professionals and 9 members of the Board of Directors, with women making up 69%. The business picture presented is of an organization that attempts to manage greater resources, more programs and increased requirements with improved efficiency.
The future is ours, let's build it
The five-year period 2021–2025 shows that Cyprus' research and innovation ecosystem is in a maturing phase. The funded projects are not limited to theoretical knowledge, but cover practical solutions for health, energy, shipping, agri-food, education, cybersecurity, environment and infrastructure.
The RIF emerges as one of the main drivers of this transition. With funding, technical support, knowledge transfer services, internationalization actions, trainings and cooperation networks, it supports an ecosystem that is called upon to prove that it can produce competitive knowledge and innovation with an international perspective.
The challenge for the next period will be to further transform funded projects into commercially viable solutions, strengthen private participation, attract talent and capital and maintain the upward trend in international rankings.
The picture to date shows an ecosystem that is being methodically built, with the RIF acting as a key support for businesses, researchers and organizations. From research to market, from idea to product and from local effort to international cooperation, the last five years have left a clear imprint: innovation in Cyprus is no longer an abstract goal, but a field of organized investment, cooperation and measurable results.
