Cyprus R&D spending stood at 0.68% of GDP in 2023
Cyprus would need a major increase in public and private research investment to reach a proposed target of 5% of GDP by 2032.
Nicosia, Cyprus. Cyprus spent €213.6 million on research and development in 2023, equivalent to 0.68 per cent of gross domestic product, according to the Statistical Service. A proposed national objective would raise combined public and private R&D investment to at least 5 per cent of GDP by 2032.
Current spending and comparisons
Cyprus’ R&D expenditure in 2023 was below the EU average of 2.26 per cent of GDP. Provisional comparative figures placed Cyprus at about 0.65 per cent in 2024.
Germany recorded R&D spending equivalent to 3.13 per cent of GDP, while Austria spent 3.26 per cent and Belgium 3.36 per cent. Reaching 5 per cent would require a substantial shift in economic policy and investment.
Innovation and productivity
Research investment can support the creation of knowledge that businesses may develop into products, technologies and services. It can also contribute to intellectual property, university spin-offs, research centres established by international companies and higher-skilled employment.
The OECD has reported a relationship between R&D investment and productivity. Earlier OECD research estimated that a 1 per cent increase in business R&D was associated with a 0.13 per cent increase in productivity growth, while increases in public and foreign R&D also had positive productivity effects.
More recent OECD analysis found that additional public R&D expenditure can attract private investment, stimulate innovation and improve productivity and living standards over the longer term.
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