cyprus r — cyprus r — Cyprus spent €213.6 million on research and development (R&D) in 2023, representing 0.68 per cent of its GDP, according to data released by the Statistical Service (Cystat) on Thursday. This figure marks a 3.2 per cent increase from the previous year, when expenditure was recorded at €207 million, or 0.70 per cent of GDP.
Cyprus r: Steady Growth Yet Below EU Standards
Despite the increase in R&D spending, Cyprus continues to fall short of the European Union average, which stands at 2.26 per cent of GDP. The country ranks among the lowest performers in the EU alongside Malta (0.64 per cent) and Romania (0.52 per cent). In contrast, nations such as Sweden (3.64 per cent), Belgium (3.27 per cent), and Austria (3.26 per cent) lead the way in R&D investment.
Long-Term Trends in R&D Spending
Over the last two decades, Cyprus has demonstrated one of the highest long-term growth rates in R&D spending within the EU. From 2000 to 2023, annual growth averaged 9.96 per cent, with a more recent average of 7.23 per cent from 2010 to 2023. For comparison, the EU’s growth rates during the same periods were significantly lower, at 4.47 per cent and 4.62 per cent respectively.
Sector Breakdown of R&D Investment
In 2023, business enterprises contributed the largest share of R&D activity, amounting to €89.6 million or 41.9 per cent of the total expenditure. This was followed by higher education institutions at €76.9 million (36 per cent), private non-profit organisations at €31.1 million (14.6 per cent), and the government sector at €16 million (7.5 per cent). The distribution of these figures remained largely consistent with those from 2022, although the government’s share saw a slight increase.
Leading Industries in R&D Funding
Within the business sector, companies in the information and communication field were the most significant contributors, investing €51.7 million. Additionally, manufacturers in pharmaceuticals, electronics, and electrical equipment combined their efforts to add another €25.9 million to R&D funding.
Funding Sources for R&D Activities
Government funding accounted for 23.5 per cent of total R&D expenditure, equating to €50.2 million, an increase from 22.1 per cent in 2022. Public universities provided €27 million, while foreign sources—including EU funds—contributed €45.1 million. Notably, the private sector supplied the largest portion of financing at €91.3 million, representing 42.8 per cent of the total.
Focus Areas of Research and Development
The majority of R&D spending in Cyprus was allocated to natural sciences, totalling €94.5 million. This was followed by engineering and technology at €66.1 million, social sciences at €22.3 million, agricultural sciences at €12.6 million, medical sciences at €10.5 million, and humanities at €7.5 million.
Workforce Engagement in R&D
In 2023, a total of 4,257 individuals were engaged in R&D activities, a slight increase from 4,241 in 2022. This workforce corresponds to 2,308 full-time equivalent researchers, of whom 909 (39.4 per cent) were women. Additionally, approximately one-third (33.3 per cent) of these researchers held PhD degrees.
While Cyprus has made progress in R&D spending, the country still has significant ground to cover to meet EU averages. The consistent growth in expenditure suggests a commitment to enhancing research capabilities, but the reliance on the private sector for funding raises questions about the sustainability of this growth. As Cyprus looks to the future, the focus will likely remain on increasing R&D investment across various sectors to foster innovation and competitiveness within the European context.
