Cyprus’ R&D budget increase way above EU average in 2023

The Cyprus government’s allocated budget for research and development (R&D) rose by 19.8% in 2023 compared with 2022, which was way above the EU average of 5.3%, according to Eurostat.

In 2023, total government budget allocations for R&D across the EU stood at €123,684 billion, equivalent to 0.73% of GDP, marking a 5.3% increase compared with 2022 (€117,424 billion) and a 54.8% increase compared with 2013 (€79,886 million).

In Cyprus, the allocated R&D budget for 2023 totalled €138,024 million, corresponding to 0.46% of the country’s GDP. The amount increased by 19.8% compared to 2022 (€115,225 million) and by 128.9% compared to 2013 (€60,297 million).

In 2023, government budget allocations for R&D at EU level stood at €275.6 per person, a 53.3% increase compared with 2013 (€181.0 per person).

In Cyprus, this rate stood at €149.9 per person, an increase of 114.4% compared to 2013 (€69.6 per person).

The highest allocations were recorded in Luxembourg (€646.6 per person), followed by Denmark (€552.4) and Germany (€529.3).

On the other hand, the EU countries with the lowest R&D budget allocations were Romania (€21.2 per person), Bulgaria (€33.1) and Hungary (€48.1).

Between 2013 and 2023, almost all EU governments increased their budget allocations for R&D in terms of euros per person.

The largest percentage increases were recorded in Latvia (+291% from €16.0 euros per person in 2013 to €62.6 in 2023), Poland (+147% from €37.8 to €93.3) and Bulgaria (+133% from €14.2 to €33.1). Hungary was the only EU country to register a decrease (-28% from €66.9 to €48.1).

The biggest share of the 2023 government budget allocations for R&D in the EU, namely 35.5%, was directed to the general advancement of knowledge, primarily financed by a public block grant known as public general university funds (GUF), which many public higher education institutions receive to support all their activities. Additionally, 17.3% of the GBARD was dedicated to the general advancement of knowledge from other sources than GUF, followed by 11.0% for industrial production and technology, 6.9% for health and 6.0% for exploration and exploitation of space.

In Cyprus, the largest percentage (65.5%) was directed to the general advancement of knowledge with funds from sources other than GUF, 21.4% focused on the general advancement of knowledge, primarily financed by public general university funds, 5.4% went to health, 5.0% to agriculture, and 1.6% to education.