Cyprus’ spending on research and development (R&D) reached €213.6 million in 2023, representing 0.68% of its GDP, according to new data from the Cyprus Statistical Service. One year before, in 2022, total expenditure stood at €207 million, accounting for 0.70% of GDP.

Cyprus continues to lag well behind the EU average of 2.26% of GDP dedicated to R&D, highlighting the country’s ongoing struggle to align with European innovation leaders such as Sweden (3.64%), Belgium (3.27%), and Austria (3.26%).

With only 0.68% of GDP spent on R&D, Cyprus ranks third from the bottom in the European Union, ahead of only Malta (0.64%) and Romania (0.52%).

While the share of GDP remains very low, Cyprus stands out for its rapid long-term growth in R&D investment. Between 2000 and 2023, Cyprus recorded an average annual growth rate of 9.96%, nearly double the EU average (4.47%). Over the last decade (2010–2023), growth averaged 7.23%, again outpacing the EU rate of 4.62%.

In 2023, the business sector accounted for the largest share of research spending, at €89.6 million (41.9%). Higher education institutions followed with €76.9 million (36.0%), while non-profit organizations contributed €31.1 million (14.6%) and the public sector €16.0 million (7.5%).

Within the private sector, information and communication technologies (ICT) dominated with €51.7 million, followed by the manufacturing sector, particularly pharmaceuticals and electronics, which attracted €25.9 million in R&D spending.

Public funds supported 23.5% of R&D activities (€50.2 million), up from 22.1% in 2022. An additional €27 million came from public university budgets, while €45.1 million originated from external sources, including EU programmes. The private sector remained the main financier with €91.3 million (42.8%).

In terms of scientific disciplines, the natural sciences received the largest share of funding (€94.5 million), followed by engineering and technology (€66.1 million), social sciences (€22.3 million), agricultural sciences (€12.6 million), medical sciences (€10.5 million), and humanities (€7.5 million).

A total of 4,257 people were employed in R&D activities in 2023, slightly up from 4,241 in 2022. On a full-time equivalent basis, this corresponds to 2,308 researchers, of whom 39.4% were women. Notably, one in three (33.3%) held a doctoral degree, reflecting a well-qualified research community despite limited funding intensity.