In 2023, Cyprus saw a 19.8% increase in state budget allocations for research and development (R&D) compared to 2022, significantly higher than the EU average increase of 5.3%, according to Eurostat, the European Union's statistical office.

Specifically, the total R&D budget allocations in the EU in 2023 amounted to €123.684 billion, representing 0.73% of the EU's GDP. This marks a 5.3% increase from 2022 (€117.424 billion) and a 54.8% increase from 2013 (€79.886 billion).

In Cyprus, R&D expenditures in 2023 amounted to €138.024 million, accounting for 0.46% of the country's GDP. This reflects a 19.8% increase from 2022 (€115.225 million) and a 128.9% increase from 2013 (€60.297 million).

On a per capita basis, R&D budget allocations in the EU in 2023 were €275.6 per person, a 53.3% increase from 2013 (€181.0 per person).

In Cyprus, the per capita R&D budget was €149.9 in 2023, a 114.4% increase from 2013 (€69.6 per person).

The highest per capita R&D budgets in 2023 were recorded in Luxembourg (€646.6 per person), Denmark (€552.4 per person), and Germany (€529.3 per person).

The EU countries with the lowest per capita R&D budgets were Romania (€21.2 per person), Bulgaria (€33.1 per person), and Hungary (€48.1 per person).

Between 2013 and 2023, almost all EU governments increased their R&D budget allocations in euro per capita terms. The largest percentage increases were observed in Latvia (+291% from €16.0 per person in 2013 to €62.6 in 2023), Poland (+147% from €37.8 to €93.3), and Bulgaria (+133% from €14.2 to €33.1). Hungary was the only EU country to record a decrease (-28% from €66.9 to €48.1).

Of the funds allocated to R&D in the EU in 2023, the largest share (35.5%) was for the general promotion of knowledge, for which many public higher education institutions receive support through general public university funds.

Additionally, 17.3% of the funds were for the general promotion of knowledge from sources other than public funds, 11.0% for industrial production and technology, 6.9% for health, 6.0% for space exploration and exploitation, 5.3% for energy, 3.9% for defense, 2.9% for transport, 2.9% for agriculture, 2.4% for the environment, 1.8% for education, 1.8% for land exploration and exploitation, 1.6% for political and social systems, structures, and processes, and 0.9% for culture, recreation, religion, and media.

In Cyprus, the largest share (65.5%) was for the promotion of knowledge from sources other than public funds, 21.4% for the promotion of knowledge through these funds, 5.4% for health, 5.0% for agriculture, and 1.6% for education. The remaining categories each accounted for less than 0.5%.