Amid efforts to transition Cyprus from a primarily services-based economy to one that is driven by knowledge, the Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou, noted that, “Today’s launch is not only an important milestone but also a reflection on how far the ecosystem has evolved and what its potential is.”
He was speaking at the launch of US tech giant Plug and Play’s Cyprus Kickoff event at the Presidential Palace.
Damianou highlighted that Foreign direct investment (FDI) had intensified in Cyprus over recent years while the country was also strengthening its position a gateway to Europe, a tester for innovation and a launchpad for startups growing globally.
He noted that the data supports Cyprus’ growth, including recent recognition such as Cyprus Ranking in the Global Innovation Index 2025 as well as 15th Globally and 1st in Southern Europe for its Innovation Business Environment according to the Innovators Business Environment Index (IBEI) 2026 by StartupBlink.
Amid a strengthening regulatory framework, the startup ecosystem is also gaiinig momentum, Damianou underlined, becoming among the fastes growing in Europe.
Damianou said that a recent survey sourced by Chief Scientist Demetris Skrourides had uncovered significant activity in the number of startups and volume of research being carried out on the island.
He also noted the contribution of the tech sector, including fintech, to the countr’’s GDP with Invest Cyprus reporting some €2.6 billion in new FDI going to tech alone.
“This is the result of deliberate policy,” the Deputy Minister underlined, including through the Research and Innovation Foundation (RIF).
“Through the RIF, we are committed to the entire lifecycle of innovation,” he continued, including through investing in supercomputing and AI.
He also noted how important research, innovation, and the ability to compete globally and scale up companies were to Europe and Cyprus, adding, “This is where Plug and Play comes in.”
Damianou said that Plug and Play’s presence in Cyprus demonstrated the potential of the local ecosystem, sharing his shared aspiration with the company that “the next unicorn is Cyprus-based and comes out of Plug and Play Cyprus.”
