The Council of Ministers has approved a new funding system for publicly funded research organisations, establishing a framework that links state support to performance, strategic priorities, and measurable outcomes, Innovation Minister Nicodemos Damianou announced on Wednesday.
“Our aim is to ensure that the infrastructure, expertise, and capabilities developed in recent years are not only preserved, but further strengthened and transformed into sustainable structures with long-term value through a systematic and institutionalised funding framework,” the minister said.
The new system will come into effect in 2027, initially targeting Centres of Excellence co-financed by national and European funds under Horizon Europe’s Teaming for Excellence programme.
A central feature of the mechanism is performance-based funding, with research centres assessed against specific, pre-agreed targets. The framework includes 18 performance indicators grouped into six thematic areas: research environment, internationalisation, scientific excellence, research output, knowledge transfer, and socio-economic impact.
Performance will be reviewed annually, with funding allocations renewed every three years. In addition, independent scientific evaluations by external experts will be conducted on a three-year cycle.
The system also introduces fiscal safeguards, including a funding cap, while taking into account the actual financial needs of each centre and any additional institutional state support.
“With this decision, the government is laying the foundations for a new model of institutional support for research and innovation,” Damianou said.
“We are continuing to invest in scientific excellence and innovation as key drivers of growth and competitiveness, while ensuring public funds are used with transparency, accountability, and tangible benefits for citizens and the Cypriot economy.”
