Cyprus recorded a modest increase in research and development (R and D) spending in 2023, though it remains well below the European Union average, according to data released on Thursday by the Statistical Service of Cyprus (Cystat).
According to the results of a special survey conducted by Cystat on scientific research and experimental development, total R and D expenditure in 2023 was estimated at pound 213.6 million, corresponding to 0.68% of Gross Domestic Product (GDP). This compares with pound 207.0 million, or 0.70% of GDP, in 2022.
Despite the 3.2% increase in R and D expenditure over the previous year, the share of GDP devoted to research and development in Cyprus remains relatively low compared with other EU countries. The EU average stands at 2.26%, ranging from 0.52% in Romania, 0.64% in Malta, and 0.68% in Cyprus, to 3.26% in Austria, 3.27% in Belgium, and 3.64% in Sweden.
However, Cyprus ranks among the fastest-growing EU countries in terms of R and D expenditure over time, with an average annual growth rate of 9.96% for the period 2000-2023 and 7.23% for 2010-2023, compared with 4.47% and 4.62% respectively for the EU as a whole.
By sector of activity, business enterprises accounted for the largest share of research spending in 2023 – pound 89.6 million or 41.9% of the total. The higher education sector followed with pound 76.9 million (36%), private non-profit institutions with pound 31.1 million (14.6%), and the government sector with pound 16.0 million (7.5%). The corresponding shares in 2022 were 41.8%, 37.4%, 15.0%, and 5.8%, respectively.
Within the business sector, information and communication technologies (ICT) represented the main area of research activity, with pound 51.7 million in expenditure, while the manufacturing industry – particularly pharmaceuticals, computer and electronic products, and electrical equipment – contributed pound 25.9 million.
Regarding sources of funding, 23.5% of R and D activity in 2023 (pound 50.2 million) was financed by public funds, compared with 22.1% (pound 45.8 million) in 2022. Additionally, pound 27.0 million came from the budgets of public universities, and pound 45.1 million from foreign sources, including EU funds. The private sector provided the largest share, amounting to pound 91.3 million, or 42.8% of total R and D spending.
Most research expenditure focused on the natural sciences (pound 94.5 million), followed by engineering (pound 66.1 million), social sciences (pound 22.3 million), agricultural sciences (pound 12.6 million), medical sciences (pound 10.5 million), and humanities (pound 7.5 million).
The number of people employed in research activities in 2023 reached 4,257, compared with 4,241 in 2022. In full-time equivalent terms, this corresponds to 2,308 persons, of whom 909 (39.4%) were women. About 33.3% of research personnel held a doctoral degree.