The progress of Cypriot businesses in innovation, with the development of new products aimed at international markets, was pointed out by Theodoros Loukaidis, Director General of the Research and Innovation Foundation (RIF).

In an interview with the Cyprus News Agency (CNA) ahead of the "Researchers' Night" event on September 27, Loukaidis pointed out that despite reduced public and private investments in Cyprus' innovation indicators, innovative businesses in sectors such as defence technologies, biotechnology, and pharmaceuticals are attracting investments and yielding results. He emphasised the need to support innovation through further funding and favourable policies at both national and European levels.

Responding to whether funding ultimately leads to commercial solutions, Loukaidis mentioned specific programs that achieve this. He highlighted the “Co-Develop” initiative, which fosters collaboration between researchers and businesses, facilitating the development of technological solutions.

"We are seeing some of these businesses, which have received funding, already bringing products to market," Loukaidis said. However, he noted that time was needed for these products to mature, expressing optimism that these encouraging results will further expand in the years ahead. 

Challenge of reduced innovation investment

Despite Cyprus's progress in the European Innovation Scoreboard, investments in research and development (R&D) remain low, both from the public and private sectors. The Director of RIF highlighted that Cyprus shows strengths in areas such as progress in innovation, high levels of research, an attractive research system, and increasing collaboration within its ecosystem. Additionally, more businesses are integrating innovation into their operations.

However, Cyprus lags behind in certain areas, particularly in the low level of R&D investments and the limited export of high- or medium-tech products by Cypriot companies. The Director also pointed out the downward trend in investment funds, which mirrors a global trend. To address these challenges, measures are being implemented through RIF’s programs.

He expressed satisfaction with the increasing adoption of innovation by more businesses in recent years but acknowledged that Cyprus still has a long way to go, as it remains below the European average in exports and attracting investments in innovative businesses.

One key initiative is the "Disrupt" program, the first of its kind in Cyprus, providing mixed funding. The program, as he said, has allocated €10.5 million in public funding to seven innovative companies, leveraging €12.5 million in additional investments from funds in Cyprus and abroad. This program aims to help these companies scale their operations and introduce products to international markets, with a positive impact expected in the coming years.

For further integration of innovation into the Cypriot economy, he added the RIF offers a comprehensive toolbox of programs aimed at  traditional sectors and supporting also startups and scaling businesses.

“These growing enterprises, through other innovation programs, have moved beyond the initial stages and are now rapidly expanding, attracting both private and self-investments”, he said.

Loukaidis emphasized the importance of these businesses introducing new products to markets in sectors that previously seemed beyond Cyprus's reach, such as defence technologies, biotechnology, cosmetics, pharmaceuticals, food, and sports. He also highlighted the crucial role of government tax incentives, which encourage and stimulate investment in R&D.

Significant Findings in Draghi's Innovation Report for the EU

Responding to questions about Mario Draghi's report on the lack of investment in innovation in Europe, Loukaidis, described the findings as highly significant.

"Europe can and must foster more disruptive innovation, with increased investments in innovative companies, scaling enterprises, and technology firms to address the gap that has emerged between Europe and other regions like the United States and China, which Draghi highlights in his report," he said.

He emphasized that Europe, a global leader in research, needs to commercially harness the knowledge it generates and bring more products to global markets. He also highlighted the necessity for the European Union to function as a truly unified market, noting current challenges and regulatory hurdles across different markets within the single market.

He also mentioned that similar challenges have been identified in Cyprus’s national research and innovation strategy for 2024-2026. He explained that efforts were being made to address these issues through RIF's funding programs and other initiatives from the Deputy Ministry of Research, Innovation and Digital Policy.

Initiatives for developing talents from a young age

Furthermore he said that RIF places great importance on connecting education with the job market and fostering young talent, giving the next generation opportunities to develop skills and innovation capabilities.

"We have remarkable talents, and we are providing them with opportunities. We aim to offer even more chances through our programs," he noted.

Addressing the mismatch between qualifications and the job market in Cyprus, he noted that RIF's programs aim to better link research with industry.

He also referred to several competitions open to all ages, providing young people with chances to develop skills in design, research, and innovation.

Researcher's Night on September 27th

The Research and Innovation Foundation (RIF) is organizing the "Researcher's Night" on September 27th in Nicosia, an event that has become a tradition in recent years.

“This is a major celebration of research, innovation, technology, and science, held simultaneously in 400 cities across Europe. It is a great opportunity for both young and old to discover the ecosystem of research and innovation, meet researchers and innovative companies that have worked hard to position the country high on the European innovation index,” said Loukaidis.

He added that visitors to the event will have the chance to learn more about research and innovation through interactive experiments and student competitions, giving young people the inspiration they need to pursue a path in science, research, and technology.

This year’s event is themed "Mission Possible."

“It’s a positive message that through research, innovation, and technology, we can address some of humanity’s most significant challenges, such as cancer, climate change, food and soil safety, and smart cities,” Loukaidis stated.

"Researcher’s Night" will take place from 8:30 AM to 10:00 PM at the State Fair, with free admission.