r d — r d — Cyprus faces challenges with its research and development intensity while the European Union sees a significant increase in R&D spending. According to the latest data from Eurostat, the EU’s total R&D expenditure reached €403.1 billion in 2024, up from €389.2 billion in 2023, marking a 3.6 per cent growth that continues a decade-long trend of expansion.
Over the past ten years, EU investment in research has surged by 62.2 per cent, rising from €248.6 billion in 2014. This robust increase reflects member states’ commitment to enhancing their innovation capacities.
Despite the overall growth, R&D intensity, defined as expenditure as a share of GDP, remained constant at 2.2 per cent in 2024. This stability represents only a slight improvement since 2014, when R&D intensity was 0.1 percentage points lower. However, significant disparities persist, with some member states outperforming others in their research commitments.
Cyprus recorded one of the lowest R&D intensities in the European Union at 0.7 per cent in 2024, placing it near the bottom of the rankings. Only Romania and Malta reported lower figures at 0.5 per cent, while Bulgaria, Latvia, Slovakia, and Luxembourg also lagged behind with R&D intensities of 0.8 per cent to 1 per cent.
This data highlights Cyprus’s ongoing struggle to develop a strong research base, even as the EU increases its resources for innovation. In contrast, six countries have achieved or surpassed the European Council’s target of 3 per cent R&D intensity. Sweden leads the pack with 3.6 per cent, followed closely by Belgium at 3.4 per cent, Austria at 3.3 per cent, and Finland at 3.2 per cent. Germany and Denmark also met the target with 3.1 per cent and 3.0 per cent, respectively.
The figures reveal a widening gap between research leaders in northern Europe and those still developing their innovation systems. Over the past decade, nineteen member states have improved their R&D intensity, with Belgium showing the most significant increase of one percentage point. Greece followed with a rise of 0.7 percentage points, while Estonia and Croatia each recorded improvements of 0.6 percentage points, indicating strong growth among several mid-tier member states.
Eurostat’s report also indicated that the business enterprise sector remains the primary driver of R&D investment in the EU. Companies accounted for 66.5 per cent of total expenditure, equating to €268.1 billion. Higher education institutions contributed €86.1 billion, representing 21.4 per cent, while government bodies allocated €43.5 billion, or 10.8 per cent. Private non-profit organisations made up the smallest share, contributing €5.4 billion, which is just 1.3 per cent of total spending.
The data paints a clear picture of an EU that is deepening its investment in science and innovation while grappling with persistent imbalances across the bloc. For Cyprus, these results underscore the urgent need for stronger national policies that can effectively elevate its R&D performance, as the divide between the island and higher-performing member states continues to grow.
