Cyprus Innovation and Entrepreneurship Dynamics - EY · PDF fileInnovation and Entrepreneurship Dynamics Contents Contents ... Cooperation Treaty patent applications, ... (or €11.3m),

January 2017

Cyprus Innovation and Entrepreneurship Dynamics

Contents

Contents

At a glance 1

Innovation 2

Research & development 4

Entrepreneurship 9

Developments 12

Definitions 13

References 15

At a Glance

The promotion of innovative Companies and entrepreneurship is amongst the top policy priorities of the European Union as it is thought to be one of the main drivers of competitiveness and job creation. The 7th edition of the Regional Innovation Scoreboard1 (RIS) includes Cyprus at the country level and ranks it as a moderate innovator, a ranking that is well below the EU average.

As at the end of 2015, almost all the businesses in Cyprus (99.8%) were Small and Medium sized Enterprises (SMEs2) accounting for 45.7% of total employment. The European Union recognises that SMEs play an ever-increasing role in innovation and is exploring means of improving the environment for entrepreneurship and small firm development and increasing the innovation capacity of enterprises.

Research and Development (R&D) expenditure only accounted for 0.48% of

1European Commission 2016, http://ec.europa.eu/DocsRoom/documents/17824 2Please refer to “Definitions” (p.13).

Issue 2

Cyprus’s GDP in 2014, or €83.48m in real terms, amongst the lowest rates in the EU. At the same time, 52.7% (or €44m) of total R&D expenditure was attributed to research carried out at higher educational institutions (2014).

The Cyprus Entrepreneurship Fund was established by the Republic of Cyprus and financed by the European Investment Bank (EIB), with the view to facilitate access to finance for Cypriot SMEs, thereby supporting and strengthening entrepreneurship in the country. To promote investment in innovative businesses in Cyprus, the government has proposed new legislation that includes targeted personal income tax allowances. The proposed legislation is expected to go to the House of Parliament for a vote well before the end of the year.

The Innovation and Entrepreneurship Dynamics Newsletter is published annually and provides key information, data and developments in the Innovation and Entrepreneurship sectors in Cyprus, based on official data from the European Commission and the Government of Cyprus.

2 | Innovation & Entrepreneurship January 2017

2011 2012 2013 2014

R&D expenditure* (€m (% of GDP)) 88.9 (0.45) 83.3 (0.43) 83.8 (0.46) 84.1 (0.48)

Total R&D expenditure (€ per inhabitant) (EU 28) 515 534.4 542 560.1

Total R&D expenditure (€ per inhabitant) (Cyprus) 105.8 96.7 96.8 96.4

Innovation Index-Cyprus 0.504 0.503 0.489 0.445

Innovation Index–EU-28 0.545 0.542 0.554 0.555

Share of government spending (% of total R&D spending) 0.750 0.680 0.690 14

National applications for patents 8 12 3 4

Renewal of patents (per 1,000 persons) 9 9 10 9

Key Indicators

Source: CyStat, Department of Registrar of Companies and Official Receiver, Eurostat, Innovation Union Scoreboard

“Innovation is the act that endows resources with a new capacity to create wealth” Peter Drucker, Innovation and Entrepreneurship

InnovationInnovation in the EUThe EU 2020 Strategy aims for the European Union to develop as a smarter, knowledge-based, greener economy, growing fast and sustainably, creating high levels of employment and social progress. A set of structural indicators for monitoring the progress made in achieving the objectives of the EU 2020 strategy is used, with Eurostat compiling and publishing these indicators annually.

The 7th edition of the Regional Innovation Scoreboard (RIS) provides a comparative assessment of innovation performance across 214 regions of 22 EU Member States and Norway. Cyprus, Estonia, Latvia, Lithuania, Luxembourg and Malta are included at the country level, as the regional administrative level as such does not exist in these countries. The RIS accompanies the European Innovation Scoreboard (EIS), which benchmarks innovation performance at the level of Member States. Compared to the EIS, the RIS has a stronger focus on the performance of SMEs. The EU strategy on innovation, which is part of the Europe 2020 strategy for growth and jobs, was launched in 2010 and was termed the Innovation Union. The Innovation Union aims to create an innovation-friendly environment that makes it easier for great ideas to be turned into products and services that will bring economic growth and jobs.

Main objectives of the EU 2020 strategy:

• creating value by basing growth on knowledge

• empowering people in inclusive societies

• creating a competitive, connected and greener economy

*Includes direct government spending and government university funds.

3Innovation & Entrepreneurship January 2017 |

Innovation by sector of performanceAccording to the 2016 Innovation Union Scoreboard, Cyprus ranked below the EU average in innovation. The performance relative to the EU peaked in 2011 (95%), but has declined to 86.5% in 2015. Cyprus performs below the EU average in licence and patent revenues from abroad, R&D expenditure in the business sector, non-EU doctorate students, new doctorate graduates, as well as Patent Cooperation Treaty patent applications, amongst other indicators. On the contrary, stronger performance relative to the EU average was recorded in community trademarks, international scientific co-publications, innovative SMEs collaborating with others and percentage of the population that completed tertiary education.

“I want Europe to be a place where innovative SMEs and start-ups flourish and scale up within the Single Market. This requires a concerted effort.” (Elżbieta Bieńkowska, EU Commissioner)

Innovation leaders

Strong innovators

Moderate innovators

Modest innovators

European innovators scoreboard (2016)

Source: EC

According to the most recent report, published in July 2016, performance has improved in some areas, in particular in Open and excellent research systems (7.7%) and Human resources (7.6%). The indicator with the strongest growth is new doctorate graduates (23%). Performance has worsened most in economic effects and Firm investments, in particular due to strong growth declines in License and patent revenues from abroad (-42%) and Non-R&D innovation expenditures (-17%). The main findings of the Innovation Scoreboard report are that EU innovation is catching up with Japan and the US, Sweden is once again the innovation leader, and Latvia has become the fastest growing innovator.


Research & Development R&D Policy DevelopmentThe Organisations involved in R & D policy development in Cyprus are the following:

• Planning Bureau

• National Council for Research and Innovation

• Cyprus Scientific Council

• Research Promotion Foundation

The Planning Bureau is the Government agency engaged in the formulation of strategy, the identification of objectives and the introduction of policy measures aiming at the promotion of research activities in Cyprus. The Planning Bureau, in collaboration with the Ministry of Finance, provides direct financing for research initiatives undertaken by the state research institutions / departments, through the annual Development Budget of the Republic.

The Research Promotion Foundation was established in 1996, to serve as the national organisation for the promotion of scientific and technological research in Cyprus. The Foundation is fully supported by the Government and its resources are derived mostly from the Government, but also from the Framework Programmes of the EU. The Foundation’s core objective is the promotion of scientific and technological research and innovation in Cyprus.

The National Council for Research and Innovation determines the long term strategy of the Republic on Research, Technological Development and Innovation (RTDI). The Council is chaired by the President of Cyprus and defines the medium and long term national goals and aspirations in RTDI, which conform to the wider development goals of the State and the implementation of the strategic objectives of the EU.

The Cyprus Scientific Council is an advisory scientific body and brings together scientists, who advise the Government and the National Council for Research and Innovation for the wider development strategy and policy in RTDI.

Source: Euraxess

Research Organisations

National Council for Research & Innovation

(chaired by the President of Cyprus and the council of Ministers)

Tertiary Education

Public SectorPlanning Bureau

Ministry of Finance

Budget

Research Promotion Foundation

Enterprises

Cyprus Scientific Council

Scientists


In 2014, the higher education sector received most of the funding allocated for R&D, amounting to 52.7% (or €43.6m) of the total. The government sector received 13.7% of the total (or €11.3m), while 16.3%, (or €13.5m) were allocated to the private non-profit sector.

R&D expenditure by sector (2014)

Source: CyStat

Private-non profit sector

Higher education sector

Government sector

Business enterprise sector

52.7%

17.3%

13.7%

16.3%

R&D expenditure (% of GDP)

Source: Eurostat

R&D expenditureIn 2014, R&D expenditure accounted for only 0.48% of Cyprus GDP, a small increase over the 0.46% level of 2013. The EU average expenditure on R&D was at 2.03% of GDP in 2014, much lower than the EU2020 growth strategy target of 3%. (Source: European Commission)

Partly because of the financial crisis, the R&D budget and several measures related to innovation have been put on hold during the process of fiscal consolidation.

Research and development (R&D) consists of investigative activities that a business chooses to conduct with the intention of making a discovery that can either lead to the development of new products or procedures, or to improvement of existing products or procedures.

CYEU-28

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2020 Target

2014201320122011

Private sector expenditure on R&D (2014)

Source: EuroStat

R&D expenditure by the private sector in Cyprus is amongst the lowest in the EU. In 2013, the business enterprise expenditure on R&D accounted for only 0.1% of Cyprus’ GDP, while the EU-28 average was 1.3%. Furthermore, in the period from 2007 to 2013, the R&D expenditure by the private sector fell by an average annual rate of 4.1%.


R&D promotion in CyprusThe Research Promotion Foundation (RFP), established in 1996, aims to promote the development of scientific and technological research in Cyprus, providing funding in the form of governmental grants. In September 2016, the RPF announced “RESTART”, its new framework of Programmes for the support of Research, Technological Development and Innovation (RTDI) in Cyprus, co-funded by national and European resources and implemented in conjunction with other national initiatives.

R&D expenditure versus employment in R&DOf the EU-28 states, only Romania has fewer researchers** per 1,000 employed persons than Cyprus. The country with the highest number of researchers is Finland, which also spends the most on R&D (3.17% GDP).

**Researchers are professionals engaged in the conception or creation of new knowledge, products, processes, methods and systems, as well as in the management of the projects concerned.

Investment in R&D versus real GDP growthGross domestic spending on R&D is defined as the total expenditure (current and capital) on R&D carried out by all resident companies, research institutes, university and government laboratories, etc., in a country. It includes R&D funded from abroad, but excludes domestic funds for R&D performed outside the domestic economy. The theoretical tenet suggests that endogenously determined innovation enables sustainable economic growth, given that there are constant returns to innovation in terms of human capital employed in the R&D sectors.

R&D Expenditure (% of GDP)

Source: Eurostat

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RO

CY

BG

LV

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SK

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IT

ES

LU

HU

IE

UKEE

CZNL

EU-28FR BE

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DE

DK

SE

FL

R&D Expenditure (% of GDP)

Researchers per thousand employment vs R&D Expenditure (% of GDP)

GD

P (a

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Source: Eurostat

Investment in R&D vs Real GDP Growth (2015)

BE

BG

CZ

DK

DE

EE

IE

EL

ES

FRHR

ITCY

LV

LT

LU

HU

MT

NL

AT

PL

PT

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SK

FL

SE

UK

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The RESTART 2016-2020 programs focus on priority areas defined through the Smart Specialisation Strategy for Cyprus (S3Cy) and are cofounded by European Regional Development Fund (ERDF) under priority 1 (“improving the competitiveness of the economy”).

Horizontal objectives:

• Foster, develop and enhance the human capital of Cyprus and especially the next generation of researchers.

• Strengthen cooperation with industry as a key component of the research and technological development (RTD) process to help maximise return on public investment in RTD.

• Promote and enhance international cooperation as a means of achieving the strategic objectives of the strategic goals of Cyprus.

• Promote innovation throughout the economy as a means of developing and enhancing competitive advantage for businesses and in addressing societal challenges

RESTART 2016-2020The vision of the RESTART 2016-2020 programs is the promotion of research, technological development and innovation (RTDI) as a key factor in the economic development of Cyprus, that can contribute to addressing social and economic challenges. RESTART will promote conditions for achieving sustainable development, in accordance with the principles highlighted in the Europe 2020 strategy3 for smart, sustainable and inclusive growth.

RESTART will run to 2020 with a total budget for the period of €99,140,000. At the same time, RPF launched its IRIS portal, via which interested parties may register and access the Foundation’s online services mainly related to the submission of proposals and management of funded projects of the RESTART 2016-2020 framework and for accessing information and updates regarding related activities.

pillar IIpillar IIIPriority Areas:

pillar ISmart Growth

Sustainable RTDI System

Transforming the RTDI System

3Europe 2020 is the EU’s growth strategy for the coming decade.In a changing world, we want the EU to become a smart, sustainable and inclusive economy. These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion. Concretely, the Union has set five ambitious objectives - on employment, innovation, education, social inclusion and climate/energy - to be reached by 2020. Each Member State has adopted its own national targets in each of these areas. Concrete actions at EU and national levels underpin the strategy.


Societal Challenges

Excellent Science

Industrial Leadership

European Institute for Innovation & TechnologyJoint Research

Centre

€1.96b

€31.7b

€24.6b

€17.9b

€2.8b

Horizon 2020 funding

Source: EC

Europe 2020Europe 2020 is the EU’s growth strategy for the coming decade.

The goal of the strategy is for the EU to become a smart, sustainable and inclusive economy. These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion. Concretely, the Union has set five ambitious objectives - on employment, innovation, education, social inclusion and climate/energy - to be reached by 2020. Each Member State has adopted its own national targets in each of these areas. Concrete actions at EU and national levels underpin the strategy.

Horizon 2020-Framework for Research and InnovationHorizon 2020 is aimed at securing Europe’s global competitiveness and it is the largest EU Research and Innovation Programme with nearly €80b of funding available over 7 years (2014-2020). A major goal of the framework is to improve productivity and competitiveness of SMEs and to bring new products and services to the market. The €660m that are available for Cyprus over the period 2014 to 2020, are providing much needed funds for the R&D sector and financial support to SMEs. The programme’s thematic priorities include innovative waste treatment technologies, energy efficiency and public health and represent excellent opportunities for Cypriot researchers and entrepreneurs.

Horizon 2020 comprises 5 sections, each one with specific aims:1. Excellent Science: Activities under this Section aim to reinforce and extend the excellence of the Union’s science base and to

consolidate the European Research Area to make the Union’s research and innovation system more competitive on a global scale.

2. Industrial Leadership: This section aims to speed up development of the technologies and innovations that will underpin tomorrow’s businesses and help innovative European SMEs to grow into world-leading companies.

3. Societal Challenges: This section reflects the policy priorities of the Europe 2020 strategy and addresses major concerns shared by citizens in Europe and elsewhere.

4. European Institute for Innovation and Technology (EIT): The EIT contributes to the competiveness of Europe, by promoting and strengthening synergies and cooperation among businesses, education institutions and research organisations.

5. Joint Research Centre (JRC): JRC is the European Commission’s science and knowledge service which employs scientists to carry out research to provide independent scientific advice and support to EU policy.


EntrepreneurshipInnovation and entrepreneurship are two key drivers of higher productivity. Per the World Economic Forum’s Global Competitiveness Report 2015-2016, Cyprus ranks 65th out of 140 economies assessed. Of the 36 advanced economies, it only ranks higher than Slovakia and Greece. The country’s capacity to leverage talent is at the heart of improving competitiveness. High unemployment figures of recent years weigh heavily on society, risking not only prolonged lower demand but also the de-skilling of a significant segment of the labor force and growing discontent. The most problematic factors for doing business in Cyprus were reported to be access to financing, inefficient government bureaucracy, corruption, insufficient capacity to innovate and restrictive labour regulations.

Despite Cyprus’s relative strengths (large educated human resources pool, a favourable tax regime and one of the best lifestyle destinations in the world), it has made little progress in the entrepreneurship field.

Ease of doing business in Cyprus rankings

Ranking

2016 2015

Ease of Doing Business Rank 47 60

Starting a Business 64 61

Dealing with Construction Permits 145 143

Getting Electricity 67 91

Registering Property 92 90

Getting Credit 42 61

Protecting Investors 25 24

Paying Taxes 44 51

Trading Across Borders 43 43

Enforcing Contracts 143 148

Resolving Insolvency 17 51

The rankings are based on a sample of 189 countries.Source: World Bank

corporate tax rate

12.5%one of the lowest rates in the EU

Bilateral agreements with

58 countries

No withholding taxes

Zero tax on interest and

dividend income

Favourable corporate tax regime


NPEs by sector or industry (June 2016)

Other Activities

Professional, scientific & technical activities,

& support service activities

Real Estate Activities

Financial & Insurance Activities

Information & Communication

Wholesale & Retail Trade,

Accom. & Food Service

Activities

ConstructionManufacturingMining & Quarrying,

Water Supply, Electricity, gas,

steam & air condition

supply

Agricultre, forestry & finishing

€mn

0

1,000

2,000

3,000

4,000

5,000

Cyprus Entrepreneurship FundThe Republic of Cyprus (“RoC”) has established the CYPEF with the view to facilitate access to finance for Cypriot SMEs, thereby supporting and strengthening entrepreneurship in the country. The CYPEF is being financed by a loan from the European Investment Bank to RoC. The CYPEF is being managed and operated (on behalf of the RoC) by the European Investment Fund (“EIF”) and it is envisaged to implement, over time, different financial products to better satisfy market conditions and needs. CYPEF’s operations are initiated with the deployment of a portfolio risk sharing loan product. Loans provided to SMEs under the Facility shall benefit from improved funding conditions, such as reduced interest rates and potentially lower collateral requirements. On June 6, 2016 the EIF published a call for the selection of eligible financial institutions to become financial intermediaries for the granting of the risk sharing loans.

One of the major challenges faced by SMEs is access to finance. The large amounts of non-performing loans at Cypriot banks continue to restrict the ability of businesses to borrow. The ratio of non-performing exposures to total credit facilities for SMEs stood at 60.8% as at the 30th of June 2016.

SMEsSmall and medium-sized enterprises (SMEs) are the backbone of Europe's economy. They represent 99% of all businesses in the EU***. The European Commission considers SMEs and entrepreneurship as key to ensuring economic growth, innovation, job creation, and social integration in the EU. In the past five years, they have created around 85% of new jobs and provided two-thirds of the total private sector employment in the EU. In sectors such as biotechnology and information technology, relatively small numbers of new, technology-based firms are key suppliers of new technologies. The ability to exploit new technologies, and to respond quickly to changing market needs, give SMEs a pivotal role in the success of the European economy. Support for the creation of new ventures and spin-offs from research institutions and large companies, as well as the removal of barriers to their rapid growth and support for the transfer of know-how, also deserve to be accorded the highest priority.

After the most recent financial crisis, the Cyprus government has been slowly trying to introduce initiatives aimed at addressing the access of financing for start-ups and SMEs and providing fiscal incentives for private sector investment in innovation.

***Source: European Commission


SMEs in CyprusIn 2015, 99.8% of total enterprises or 38,917 in real terms were SMEs, while the vast majority of Cypriot enterprises employ fewer than nine persons (2015: 92.4%).

Source: EC

SME by sector 2015

Administrative and support services

Professional, Scientific and Technical activities

Real estate activities

Information and Communication

Accommodation/Food service activities

Transportation and storage

Wholesale and retail trade

Construction

Water supply

Electricity, gas, steam and air condition supply

Manufacturing

Mining and Quarrying

37.82%11.37%

0.54%0.03%

10.81%

0.20%4.33%

1.36%

2.23% 12.13%5.95%

13.24%

SMEs: the backbone of the Cyprus economy

99.8% 45.7% 92.4%

Source: Cystat, EC (2015)

of enterprises are SMEs of enterprises employ fewer than 10 persons

of the employees work in SMEs


Developments (Entrepreneurship and M&A activity)The development of the Cyprus entrepreneurship and innovation ecosystem is vital in helping to promote growth and economic prosperity. The ecosystem comprises complex relationships that are formed between actors or entities whose functional goal is to enable technology development and innovation. In the years after the recent financial crisis, Cypriot innovation actors have slowly but steadily started to flourish, simultaneously adding value to the economy and enhancing the local ecosystem.

DisruptCyprusThe disruptcyprus.com online portal is a development of RiseTech Media and provides an aggregator of news related to startups, research, innovation, entrepreneurship and technology in Cyprus. The portal features news media coverage for more than 150 events in Cyprus and abroad, has over 4,000 members and 10,000 followers in social media. RiseTech Media also recently launched disruptEurope.eu, a global human-curated news portal dedicated to sourcing and publishing the most disruptive news in the innovation and entrepreneurship in Europe. The portal includes a modern artificial intelligence chatbot called disruptbot, which helps easily find and read related news. “Disrupt Cyprus 2016” is the flagship event of the Global Entrepreneurship Week (GEW) in Cyprus, organized for the third time by Industry Disruptors – Game Changers (ID-GC), the Youth Board of Cyprus and Way Out Communications. The event aims to foster dialogue and facilitate the exchange and realization of cutting - edge entrepreneurial practices and ideas. One of the highlights of this year’s event is the “Disrupt Cyprus Cup” final, the last part of an exciting competition that aims to identify the most innovative startups.

GravityGravity is a next generation venture building incubator that fosters and propels innovation through constant interaction, empowering founders to make real impact. This new approach addresses a gap in the entrepreneurship ecosystem by building startups from early-stage to a mature venture, bringing together entrepreneurs and ideas, while building a strong network capable of unifying a vast array of resources in the most effective way. Gravity is an initiative of the Cyprus Research and Innovation Center (CyRIC), a private professional research and innovation services company. In February 2016, the Company was certified by the European Business Network (EBN) as the first Business Innovation Center (BIC) in Cyprus. CyRIC offers incubation services to startups and SMEs and represents Cyprus at the Executive board of EBN.

Microsoft Innovation CenterMicrosoft has selected European University Cyprus to be its partner institution for the establishment of the only Microsoft Innovation Center (MIC) in Cyprus. MIC offers state of the art technology facilities for collaboration on innovative research, technology and software solutions, bringing together government, academic and industry participants. There are currently more than 100 MICs worldwide. Microsoft and strategic partners in each community work together to operate the MICs, which are centers open to students, professional software developers, IT professionals, entrepreneurs, start-ups and academic researchers. MICs provide content and services designed to accelerate technology advances and stimulate local software economies through skills and professional training, industry partnerships and innovation. MICs can play a vital role in fostering innovation and growing sustainable local software economies by generating powerful new ideas through training, education and knowledge transfer.

IDEAIDEA, is a new incubator for innovative startups established by

Bank of Cyprus in collaboration with CIIM (Cyprus International Institute of Management and it offers free space, support, education and advice for these businesses to become commercially viable. IDEA is located at the Bank of Cyprus building in the Faneromeni area of Old Nicosia and aims to:

• Help new entrepreneurs and their businesses grow and succeed

• Stimulate and support the entrepreneurship and innovation culture in Cyprus

• Help develop the ecosystem of innovation in Cyprus


Definitions SMEs: The category of micro-small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding €50m, and/or an annual balance sheet total not exceeding €43m.

Innovation indicators

Indicator Definition

Community designs Number of new community designs applications

Community trademarks Number of new community trademarks applications

Employment in knowledge-intensive activities Number of employed persons in knowledge-intensive activities in business industries. Knowledge intensive activities are defined, based on EU Labour Force Survey data, as all NACE Rev.2 industries at 2-digit level where at least 33% of employment has a higher education degree (ISCED5 or ISCED6)

Innovative SMEs collaborating with others Sum of SMEs with innovation co-operation activities.

International scientific co-publications Number of scientific publications with at least one co-author based abroad (where abroad is non-EU for the EU28)

Knowledge-intensive services exports Exports of knowledge-intensive services are measured by the sum of credits in EBOPS (Extended Balance of Payments Services Classification).

Licence and patent revenues from abroad Export part of the international transactions in royalties and license fees

Medium and high-tech product exports Value of medium and high-tech exports, in national currency and current prices.

Most cited scientific co-publications Number of scientific publications among the top-10% most cited publications worldwide

Non-EU doctorate students For EU member states, is the number of doctorate students from non-EU countries (for non-EU countries: number of non-national doctorate students)

Non-R&D innovation expenditures Sum of total innovation expenditure for enterprises, in thousand Euros and current prices excluding intramural and extramural R&D expenditures

Patent Cooperation Treaty (PCT) patent applications Number of patent applications filed under the PCT, at international phase, designating the European Patent Office (EPO). Patent counts are based on the priority date, the inventor’s country of residence and fractional counts

PCT patent applications in societal challenges Number of PCT patent applications in Environment-related technologies and Health

Population completed tertiary education Number of persons in the 30-34 age class with completed first or second stage of tertiary education

Public-private co-publications Number of public-private co-authored research publications. The definition of the "private sector" excludes the private medical and health sector

R&D expenditure in the business sector All R&D expenditures in the business sector

R&D expenditure in the public sector All R&D expenditures in the government sector (GOVERD) and the higher education sector (HERD)

Sales of new to market and new to firm innovations Sum of total turnover of new or significantly improved products, either new to the firm or new to

the market, for all enterprises

SMEs innovating in-house Sum of SMEs with in-house innovation activities.

SMEs introducing marketing or organisational innovations

Number of SMEs who introduced a new marketing innovation or organisational innovation to one of their markets

SMEs introducing product or process innovations Number of SMEs who introduced a new product or a new process to one of their markets

Youth with upper secondary education Number of young people aged 20-24 years having at least upper secondary education attainment level

Source: Innovation Union Scoreboard 2015


Country codes

AT: Austria HU: Hungary

BE: Belgium IT: Italy

BG: Bulgaria IE: Ireland

CH: Switzerland LT: Lithuania

CY: Cyprus LU: Luxembourg

CZ: Czech Republic LV: Latvia

DE: Germany NL: Netherlands

DK: Denmark NO: Norway

EE: Estonia PL: Poland

EL: Greece PT: Portugal

ES: Spain RO: Romania

FL: Finland SE: Sweden

FR: France SI: Slovenia

HR: Croatia SK: Slovakia

Double taxation agreements

Armenia Malta

Austria Mauritius

Azerbaijan Moldova

Belarus Montenegro

Belgium Norway

Bosnia Poland

Bulgaria Portugal

Canada Qatar

China Romania

Czech Republic Russia

Denmark San Marino

Egypt Serbia

Estonia Seychelles

Finland Singapore

France Slovakia

Georgia Slovenia

Germany South Africa

Greece Spain

Hungary Sweden

Iceland Swiss Confederation

India Syria

Iran Tajikistan

Ireland Thailand

Italy The States of Guernsey

Kingdom of Bahrain Ukraine

Kuwait United Arab Emirates

Kyrgyzstan United Kingdom

Lebanon USA

Lithuania Uzbekistan

Source: Ministry of Finance


References“Cyprus National Reform Programme 2015”, European Commission, 2015

“Double Taxation Agreements”, Ministry of Finance, 2015

“Innovation Union Scoreboard 2015”, European Commission, 2015

“R&D Policy Development” Euraxess, http://www.euraxess.org.cy/services_incoming_practical_info_1.shtm

“The Cyprus Entrepreneurship Fund”, European Investment Fund, 2014

“The Global Innovation Index 2014: The Human Factor in Innovation Fontainebleau, Ithaca, and Geneva”, Cornell University, INSEAD, and WIPO, 2014

“Global Competitiveness Report 2015-2016”, World Economic Forum

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