Cabinet Approves New Performance-Based Research Funding Model
State Support for Research Organizations Will Now Be Tied to Performance and Measurable Outcomes.
The Cabinet approved on Wednesday the implementation of a new funding mechanism for publicly funded research organizations, which for the first time directly ties institutional state support to performance and measurable results.
In statements following the meeting, the Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou, stated that the new mechanism introduces a comprehensive and rationalized funding framework, which will be implemented starting in early 2027.
As he explained, in its initial phase, the mechanism applies to Centers of Excellence co-funded by state and European resources through the "Teaming for Excellence" program of Horizon Europe.
According to Mr. Damianou, the objective is to ensure that the research infrastructure, expertise, and capabilities developed in recent years are not only preserved, but also strengthened, evolving into sustainable structures with long-term value through an institutionalized funding framework.
18 Performance Indicators Across Six Thematic Pillars
The Deputy Minister highlighted that a core feature of the mechanism is funding research centers based on specific Key Performance Indicators (KPIs) and agreed targets. In total, 18 indicators will be evaluated across six thematic pillars:
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The research environment
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International dimension
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Scientific excellence
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Research output and performance
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Knowledge transfer
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Socioeconomic impact
Annual Evaluations and Fiscal Governance
He added that institutional performance will be evaluated on an annual basis, while funding packages will be renewed every three years.
At the same time, the mechanism incorporates provisions for fiscal responsibility, including a cap on maximum allowable funding, an assessment of the actual financial requirements of each center, and the accounting of any other institutional state subsidies received.
Mr. Damianou concluded that the decision lays the groundwork for a new model of institutional support for research and innovation—aimed at driving scientific excellence and competitiveness while ensuring transparent, effective utilization of public funds for the benefit of citizens and the Cypriot economy.
