Spending on R&D in Cyprus as a percentage of GDP remained at low levels in 2022

Despite the annual rise in absolute numbers, Research and Development expenditure as a percentage of GDP remained at low levels in Cyprus in 2022, CySTAT has said in a bulletin.

On the basis of the results of the survey carried out by CySTAT for the collection of data on scientific research and experimental development, total R&D expenditure in Cyprus in 2022 is estimated at €207 million, which corresponds to 0.75% of the Gross Domestic Product, compared to €199.5 million or 0.80% of the GDP in 2021.

“Despite the increase of 3.8% observed in R&D expenditure in 2022 relative to 2021, the share of the GDP of Cyprus devoted to R&D activities continues to be low compared to other countries,” CySTAT said, adding that the share of R&D expenditure to the GDP of the Member States of the European Union stands at 2.24% on average, ranging from 0.46% in Romania, 0.69% in Malta and 0.74% in Latvia to 3.20% in Austria, 3.40% in Sweden and 3.43% in Belgium.

However, CySTAT pointed out that Cyprus exhibits one of the highest average annual growth rates in R&D expenditure, at 10.3% over the period 2000–2022, compared to 4.2% of the European Union for the same time period.

By sector of performance, the business enterprises accounted in 2022 for €86.5 million or 41.8% of total R&D expenditure, followed by the higher education institutions for €77.5 million or 37.4%, the private non-profit institutions for €31.0 million or 15.0% and the government for €12 million or 5.8%, comparing with shares of 42.2%, 38.4%, 13.4% and 6.0% respectively in 2021.

In the business enterprise sector, the information and communication sector constituted the principal source of R&D activity, with a total R&D expenditure of €49.7 million, while of importance was also the contribution of the manufacturing industry (and particularly the manufacturers of basic pharmaceutical products and preparations and of computer, electronic and optical products and electrical equipment) with €25.2 million.

According to CySTAT, about 22.1% of R & D activity in 2022 was financed from government funds (€45.8 million), as compared with €46.4 million or 23,3% in 2021, while €27.2 million was drawn from the budget of public universities and €45.2 million from sources from abroad (including European Union funds). An amount of €88.8 million or 42.9% of the total constituted the contribution of the private sector compared to €81.9 million or 41% of the total in 2021.

Furthermore, the biggest part of R&D expenditure was devoted to the natural sciences with €92.8 million, while engineering and technology absorbed €65.3 million, the social sciences €22.1 million, the medical sciences €10.2 million, the agricultural sciences €8.9 million and the humanities €7.6 million, CySTAT added.

The number of persons engaged in R&D activities in 2022 rose to 4,241, compared to 4,209 in 2021.

In full-time equivalent terms, this number is estimated at 2,262 persons, of which 890 or 39,3% were women, CySTAT said, adding that of these persons, 33% were PhD degree holders.

(Source: CNA)