Cyprus has made significant strides in its journey towards digital transformation and green innovation in 2024, primarily by leveraging €1.2 billion from the European Recovery and Resilience Plan.
This substantial investment is primarily allocated to enhance energy efficiency and expand the use of renewable energy, thereby facilitating the digital transition of businesses.
In light of this, initiatives such as the IDEA Innovation Centre and Cyprus Seeds are proving to be pivotal.
They are not only nurturing startups but are also bridging the gap between academia and market needs.
These programmes are central to Cyprus’ ambition to emerge as a leading innovation hub in the Eastern Mediterranean.
Furthermore, the development of technology parks, which offer state-of-the-art facilities to businesses specialising in IT, life sciences, and energy, is accelerating this growth.
A noteworthy example is the planned technology park in Larnaca, which epitomises Cyprus’ strategy to attract foreign investment.
This strategy capitalises on its strategic location, business-friendly environment, and attractive tax incentives.
Simultaneously, the government is committed to supporting the digital transformation of small and medium-sized enterprises (SMEs) through initiatives such as the Digital Upgrade.
These programmes provide essential funding for the adoption of digital tools like e-commerce platforms and automated processes.
Alongside these digital initiatives, projects aimed at promoting green growth are also making headway.
They focus on reducing the environmental footprint of businesses through sustainable practices and the adoption of smart farming technologies, benefiting sectors such as shipping and agriculture.
Moreover, the Ministry of Research, Innovation, and Digital Policy, established in March 2020, is at the forefront of this transformative journey.
It has undertaken significant initiatives, such as developing the ‘Digital Citizen’ application, based on Greece’s ‘Gov.gr Wallet’.
This app enhances the accessibility of digital services and strengthens Cyprus-Greece cooperation in digital transformation.
Additionally, through international collaborations like the MED9 Joint Declaration on AI, Cyprus is actively promoting the cooperation of Mediterranean countries in the digital economy.
The Research and Innovation Foundation (RIF) also plays a crucial role with a substantial budget of €150 million for the period 2021-2027.
It supports projects that enhance research and innovation and recently launched a €2 million funding call to fortify Cyprus-Greece cooperation in these fields.
However, the widespread adoption of technologies such as artificial intelligence (AI) presents notable challenges.
AI is increasingly being applied in diverse sectors, including financial services for fraud detection, tourism for enhancing customer experience, and healthcare for improving patient diagnostics.
Despite these advances, SMEs particularly face hurdles such as a lack of skilled personnel, the high cost of technological adoption, and concerns over data privacy and management.
