Theodoros Loukaidis, Director-General of the Research and Innovation Foundation (RIF) discusses the evolution of the Foundation over the years and its impact on the island’s dynamic ecosystem, which now features more startups, scaleups and innovation-driven enterprises than ever before.
In a recent interview with GOLD magazine, Loukaidis talks about how Cyprus has climbed from 29th to 25th place on the Global Innovation Index, while its startup ecosystem has risen from 57th place in 2020 to 34th globally in 2026 according to StartupBlink, noting, "Ours is now one of the fastest-growing ecosystems in Europe."
Among other things, he, in addition, notes that RIF funding has contributed to the creation of 1,330 jobs in high-tech, high-growth areas, noting that, "Moreover, it has leveraged €47.2 million in private investment and has strengthened alignment between academia and local enterprises through 278 national collaboration networks involving more than 750 organisations working to address key challenges and market needs."
How would you describe the evolution of the Research and Innovation Foundation and the impact it has had on Cyprus?
Over the past five years, Cyprus’ research and innovation ecosystem has undergone a profound transformation and the RIF has been a central driver of that. Today, the country hosts a bigger and far more mature and dynamic ecosystem than before. We have a significantly higher number of startups, scaleups and innovation-driven enterprises, alongside more universities, research organisations and centres of excellence. Equally important is the growth of the enabling environment: more investors are active in the market, incubators and accelerators are providing structured support to emerging ventures while the Government continues to strengthen its policies and incentives for innovation and we, at the RIF, have been injecting more funding and support into our ecosystem to fuel its growth.
As our ecosystem has been evolving, so too have we been evolving. Our portfolio of programmes and services has been extended to address its growing needs; we have ramped up our operational efficiency to stay abreast of developments and deliver greater value to the ecosystem. Moreover, we now place more emphasis on the impact of our investments and we are engaged in a far wider range of ecosystem building activities, both in Cyprus and abroad, to bring this bigger ecosystem together and showcase its achievements to the world.
This progress is reflected in international benchmarks. Cyprus has climbed from 29th to 25th place on the Global Innovation Index, while its startup ecosystem has risen from 57th place in 2020 to 34th globally in 2026 according to StartupBlink. Ours is now one of the fastest-growing ecosystems in Europe.
More importantly, however, the progress is evident in tangible outcomes. We are seeing a growing number of success stories: research teams securing multi-million-euro funding from flagship Horizon Europe programmes, startups launching competitive products and expanding into international markets attracting private investments to fuel their further growth, and established companies investing in innovation to differentiate and grow. Together we are writing Cyprus’ next growth chapter.
We recently published our five-year report showcasing only some of the success stories we have been supporting.
There are far more: At the same time, we remain aware that this is a journey still in progress. There is more to be done but the trajectory is clearly positive and encouraging.
In 2021-2025, the RIF committed more than €206 million in funding, of which €153 million has been deployed. How has this funding translated into tangible economic and societal benefits?
This funding has enabled ideas to grow and talent to advance. Researchers are advancing breakthroughs that strengthen Cyprus’ scientific base and founders are turning innovative ideas into startups that launch globally competitive products. Established companies are investing in R&D to build nextgeneration solutions, while investors are coinvesting with confidence through shared risk; Students are gaining access to real innovation environments, incubators and accelerators are upgrading their capabilities, and inventors are pro-tecting and commercialising their ideas.
RIF funding has contributed to the creation of 1,330 jobs in high-tech, high-growth areas. Moreover, it has leveraged €47.2 million in private investment and has strengthened alignment between academia and local enterprises through 278 national collaboration networks involving more than 750 organisations working to address key challenges and market needs. Every €10 of RIF public funding has mobilised an additional €3.1 in private capital.
Such funding is laying the foundations for Cyprus to diversify its economy into new areas of high potential, be more competitive internationally and strengthen its resilience. It creates opportunity, not just for today but for the next generation and the one after that. This would not have been possible without the support of the Recovery and Resilience Facility and the European Regional Development Fund, through which we have secured most of this funding via the “Cyprus-tomorrow” Recovery and Resilience Plan and the “THALIA 2021-2027” Cohesion Policy Programme.
Of course, the RIF offers much more than funding. What additional support mechanisms have been developed to strengthen the innovation ecosystem?
This is perhaps one of the most significant changes that has taken place over the past five years. The RIF has evolved from being primarily a funding organisation into a comprehensive ecosystem builder. We recognised early on that funding alone is not enough. Researchers, startups and innovative companies also need access to expertise, networks, investors, infrastructure and commercialisation support.
A major milestone was the establishment of the Central Knowledge Transfer Office (CKTO), which began operating in 2023. Its mission is to help organisations protect their Intellectual Property, assess commercial opportunities and transform research results into market-ready innovations. Since its launch, the office has provided services in 137 cases, while 13 local Knowledge Transfer Offices (KTOs) have received capacity-building support. In parallel, 28 capacity-building training activities have been successfully delivered, strengthening knowledge transfer capabilities across the national ecosystem. At the same time, we have introduced tools such as Meet Investors, the Partner Search Tool and ERC Mentoring, which help startups connect with investors, facilitate collaborations between businesses and researchers and support researchers pursuing highly competitive European grants.
We have also invested heavily in ecosystem-building initiatives. Through flagship activities such as The Bash, Open Day, Partner Day and Innovation Factory, we have created opportunities for networking, collaboration and knowledge exchange across the ecosystem. Another area on which we have placed strong emphasis is talent development. Thousands of students and other citizens have participated in RIF-supported educational and public engagement activities, while internship programmes and entrepreneurship initiatives are helping nurture the next generation of innovators. We are here to support innovation at every stage of its journey, from research and discovery to commercial success and international expansion.
Cyprus is attracting increasing international attention as a technology and innovation destination. What has changed in the perception of the country abroad?
The perception of Cyprus has changed significantly in recent years. Historically, Cyprus was not typically associated with research, innovation or technology entrepreneurship. Today, the picture is very different. The country is climbing up the international rankings and we are seeing significant growth in the number of local startups and the arrival of global technology companies. Increasingly successful Cypriot researchers and innovators, as well as greater absorption from the EC Horizon Europe programme, have contributed to a new narrative. Foreign investors increasingly recognise Cyprus as a credible and emerging innovation hub. They see a country that combines access to highly skilled talent, strong digital infrastructure, an attractive business environment and growing innovation capacity.
Equally important is the growing internationalisation of the ecosystem. Over the last five years, the RIF has led 18 national delegations to major global innovation events, providing startups and researchers with direct exposure to international markets, investors and strategic partners.
Innovation today is increasingly global and geographically distributed. Investors are looking beyond traditional hubs and searching for ecosystems that combine talent, ambition and growth potential. Cyprus is steadily positioning itself as one of those ecosystems.
Looking ahead, what are the next priorities for the RIF and what role will initiatives such as Plug and Play have in the future of the ecosystem?
The next phase is about scaling what we have built. The foundations are now firmly in place. We have stronger research organisations, more innovative businesses, greater international visibility and a more mature startup ecosystem. The challenge ahead is to secure the RIF’s multi-annual budget for 2028-2034, which will allow us to continue investing into shaping the next decade of R&I impact, accelerate growth and increase international competitiveness. This is precisely why initiatives such as Plug and Play are so important. Plug and Play is one of the world’s leading innovation platforms, connecting startups with corporations, investors and global markets. Its decision to establish operations in Cyprus is a strong vote of confidence in the country’s innovation potential. The programme will provide startups with direct access to international expertise, mentorship, corporate networks and investment opportunities, helping them scale much faster than would otherwise be possible. Equally important, it strengthens Cyprus’ integration into global innovation value chains.
The ultimate goal remains unchanged: to make Cyprus a competitive, knowledge-driven economy where research, innovation and entrepreneurship create sustainable growth, quality jobs and prosperity for future generations.
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(Photo by TADOBI)
This interview first appeared in the June edition of GOLD magazine. Click here to view it.
