Research spending in Cyprus in 2020 at 0.85% of GDP

Total spending on research activities in Cyprus amounted to just 0.85% of the Gross Domestic Product (GDP) or €184.8 million in 2020, compared to €164.4 million or 0.71% of GDP in 2019, while the EU average is 2.32%.

However, Cyprus has one of the highest average annual growth rates in research expenditure, amounting to 10.7% for the period 2000-2020, compared to 4.0% in the European Union during the same period. The number of people employed in research activities increased in 2020 to 4,196.

According to the results of a special survey carried out by the Statistical Service for the compilation of data on scientific research and experimental development, despite the large increase of 12.4% observed in research expenditure in 2020 compared to 2019, the share of Cyprus' GDP attributable to R&D activities remains low compared to other countries.

Indicatively, the Statistical Service reports that the average share in EU Member is 2.32% (ranging from 0.47% in Romania, 0.66% in Malta and 0.71% in Latvia, to 3.22% in Austria, 3.38% in Belgium and 3.49% in Sweden).

By sector of activity, the business sector reported a research expenditure of €81.9 million or 44.3% of the total in 2020, higher education €66.6 million or 36.1%, private non-profit institutions €24.9 million or 13.5%, and the public sector €11.4 million or 6.1%, compared to 43.0%, 38.3%, 11.3% and 7.4% respectively in 2019.

In the business sector, according to the Statistical Service, information and communication was the main contributor to research activity with a €47.0 million expenditure, while the manufacturing industry (particularly the production of basic pharmaceuticals and pharmaceutical preparations and the manufacturing of computers, electronic and optical products and electrical equipment) made a significant contribution with €26.0 million.

Public resources funded 23.0% of research activity in 2020 (€42.5 million), compared to €36.8 million or 22.4% in 2019, while €23.0 million came from the public universities’ budget and €38.9 million from external sources (including European Union funds). An amount of €80.3 million or 43.5% of the total came from the private sector.

According to the Statistical Service, most of the research expenditure was concentrated in the sciences (€82.2 million), while engineering absorbed €60.0 million, social sciences €19.0 million, medical sciences €9.6 million, agricultural sciences €7.4 million and humanities €6.5 million.

The number of people employed in research activities in 2020 was 4,196, compared to 4,082 in 2019. In full-time equivalent terms, this number is estimated at 2,231 people, of which 877 or 39.3% were women, while 32.7% of the research workforce held a PhD.