Cyprus has been riding a five-year wave of growth in startups, innovation, and tech. Everyone’s clapping. But scratch beneath the surface and the cracks are hard to ignore.
Yes, there’s momentum. Entrepreneurs, NGOs, a few smart CSR programmes, and a handful of forward-thinking investors helped push things forward. The government played a big part too.
But here’s the hard truth: Cyprus still doesn’t have a real vision for building globally competitive tech companies.
What we do have is a government chasing after big tech multinationals. Why? To sell more real estate and boost demand for law and accounting services. That’s not a tech strategy. It’s a real estate hustle.
What Cyprus actually needs is bold policy focused on early-stage innovation. Applied research. Intellectual property. Product exports. Sustainable value creation.
Instead, we’re watching universities generate strong research and then…nothing. No products. No spinoffs. No private sector alignment.
That’s slowly changing. Some industry liaison offices popped up. Some research commercialisation initiatives are finally happening. A few private organisations are trying.
But the big picture is still broken.
Case in point: Cyprus still doesn’t have a correct and robust legislation that allows public universities to create startup spinoffs from their research.
The Research and Innovation Foundation (RIF), with top global experts, completed a study and proposed legislation.
The draft law sits with the Attorney General. It’s stuck. The president promised movement last year.
Parliament hasn’t even started talking about it. Only right-wing party Disy seems to support it.
Everyone else is afraid to discuss commercialising research results.
Moreover, universities aren’t working with the private sector to build accelerators or tech incubators. There’s no proper tech park.
There’s an effort now from the Cyprus University of Technology and CARIE to create the first one — and it’s 2025.
On the bright side, we’ve got some well-funded research centres by Europe and public funding.
But that’s not enough. The ecosystem needs a real shake-up.
Here’s where to start:
Culture: Cyprus still sees failure as a stigma. We need a culture that accepts failure as a step towards success. Right now, fear is killing ideas before they start.
Diaspora: There’s untapped potential in the Cypriot and Hellenic diaspora. They can invest, mentor, and connect Cyprus to the global tech world. We’re not doing enough to activate them.
Business Links: Companies have no clear path to collaborate with universities. It’s all ad hoc and disjointed.
Technology Transfer: Tech transfer offices exist, but no one trusts them. There’s confusion about their role. No transparency. No clear rules for researchers, universities, and investors to work together.
Education: We need serious investment in entrepreneurship education across all levels. Internal initiatives are not enough. We need global partnerships and bold curriculum changes.
Interdisciplinarity: Real innovation comes from mixing disciplines. Tech teams need to understand ethics, leadership, and philosophy. Right now, most work in silos.
Mentoring: Where’s the mentor network? Cyprus needs entrepreneurs, investors, and seasoned professionals to support researchers and students. At scale.
Research Balance: Universities must work with businesses without becoming dependent on them. Basic research matters. But applied research must become easier to fund, launch, and scale.
Incentives: We need a new incentive system. One that rewards patents, product development, and teamwork — not just academic publications. A dedicated fund to take research teams to market would change everything.
Public Opinion: There’s some hope.
72.7 per cent of Cypriots see entrepreneurship as a good career choice (higher than the EU average).
But that’s not enough. Most startups still fail in year one.
Why? No funding. No support. No real infrastructure.
Media Perception: People think entrepreneurs are elite. That’s dangerous.
Entrepreneurship needs to be accessible, not aspirational.
Fear Factor: Half of Cypriots are afraid of failing. That fear stops people from starting. This mindset must change starting in schools.
What the Education System needs to fix (According to a previous GEM Report):
- Train teachers in creative, entrepreneurial thinking.
- Invest in STEM talent and connect with global R&D leaders.
- Build entrepreneurship programmes into every school.
- Add startup-relevant courses to every university degree.
- Launch lifelong learning programmes to boost adult tech skills.
But here’s the bottom line: Cyprus can talk all it wants about becoming a tech hub. But unless both the public and private sector radically increase investment in applied research and startup infrastructure, it’s just talk.
Right now, we’re far from the goal. Public spending is up, but private sector investment? Still weak.
If we’re serious about tech, it’s time to put real money behind it. At least 5 per cent of GDP.
Not just plans. Not just panels. Actual funding. Real execution.
Until then, Cyprus will keep dreaming of Silicon Valley, while still acting like a tax haven in denial.
