Cyprus achieves largest jump in top 50 of StartupBlink’s Global Startup Ecosystem Index

Cyprus achieved the largest jump within the top 50 of StartupBlink’s Global Startup Ecosystem Index, ranking 45th globally, with Chief Scientist Demetris Skourides welcoming the news and musing that the country’s hard work is finally paying off. ­

According to the report, Cyprus has maintained its positive momentum, leaping 9 spots to 45th globally, and jumping 7 spots to rank 27th in Europe. The island has ranked 30th globally in terms of the total impact of employees on the ecosystem. ­

With Larnaca rejoining the Index, Cyprus now has four cities in the global top 1,000, and all top-ranked cities improve their positions. ­ Limassol, meanwhile, has overtaken Nicosia to lead the island this year, indicating a healthy degree of competition among the ecosystems in the country.

Efforts are paying off

Commenting on the news, Chief Scientist Demetris Skourides posted on his LinkedIn: “As a strategist I often get asked on how I interpret the signals that a strategic vision and intent are working as desired creating benefits for the country, the answer is very simple, measure what matters. It is my core belief that we should build on data driven insight, and performance measurement and benchmarking are great tools that can help us zero in into what matters.”

He added, “In less than 18 months since my appointment, as Chairman of the Board of Directors, and the government, we feel proud that our efforts in pivoting Cyprus’ research and innovation ecosystem are yielding outstanding results”.
Under the Country Rankings Insights in the From 21 to 50 category, the report mentions, among other: “One of the biggest winners of 2024 is Cyprus, as it achieved the largest jump in the global top 60 this year, climbing nine spots to 45th and surpassing European contenders such as Ukraine, Latvia, Croatia, and Greece.”

Source: Research in Innovation Foundation

Innovation ecosystem now 4th globally among countries with population less than 2 million

According to the Research and Innovation Foundation (RIF), the Cypriot innovation ecosystem now ranks 4th globally among countries with a population of less than 2 million, and 6th globally in startup exits under €1b. “In fact as of today Cyprus has 5x the startups that existed in 2020 and the numbers are expected to increase,” said Skourides.

Cyprus, which ranks in the 201-1,000 tier of the Index where the researchers found higher volatility, was listed among the cities that inspired StartupBlink this year with their positive momentum.

In this tier, there are 331 European cities ranked, with 115 cities showing positive momentum, and 22 newcomers to the Index. ­

Thirteen cities in the range of 201-300 of the Index have made substantial advances in their global rankings. Notable rises include Limassol, Cyprus up by 192 spots, Bratislava, Slovakia up by 46 spots, and Dresden, Germany up by 40 spots.

Limassol records best momentum among top 250 worldwide

Limassol's 192-spot global jump was listed as the best momentum among the top 250 worldwide. ­ Limassol ranked 61st in the EU, showing the best regional momentum among the top 100 by climbing 45 spots, and is now among the top 100 for the Social & Leisure industry, where it ranks 85th worldwide. ­

Nicosia moved up 46 places to join the global top 350 and increases 13 spots to enter the top 100 in the EU at 88th. And­ Larnaca replaced Paphos as the 3rd ranked ecosystem in Cyprus.­ Limassol is ranked 5th in the EU in the Gaming industry.

“With attractive investments approved by the government, and a commitment to support the research and innovation ecosystem with funding and infrastructure support, we are implementing a core tenant of making Cyprus’ vision 2035 happen, fulfilling our commitment in creating new jobs, revenue streams and opportunities for our youth, particularly in Stem related fields,” Skourides said.

He went on to thank all the stakeholders in the Cypriot research and innovation ecosystem, particularly researchers, research organisations and institutes, entrepreneurs and all the ecosystem stakeholders, including TechIsland, CITEA, Cyprus Computer Society, Employers and Industrialists Federation, Cyprus Chamber of Commerce and industry, “and of course the entire team at the Research Innovation Foundation.

Cyprus has built a relatively modern, free-market, service based economy

In its Startup Ecosystem Overview, StartupBlink said: “The island of Cyprus has built a relatively modern, free-market, service based economy. The country is a famous tourist destination, but lacks recognition for its startup activities, due largely to lack of funding. The resulting shortage of success stories does little to motivate the local population toward entrepreneurship.

Recognising these challenges, the Cypriot Government has established a Deputy Minister of Research, Innovation, and Digital Policy to accelerate innovation on the island. Since its establishment in 2020, the deputy ministry has introduced attractive tax incentives for investment and innovation, increased the availability of funding opportunities, and offered a startup visa. Those steps should truly be commended and have a massive positive impact on the future of the Cypriot startup ecosystem. Further explore the industry insights on 1,000 cities and 100 countries using StartupBlink Pro.

Additionally, the Cyprus Startup Visa program allows talented entrepreneurs from third world countries outside the European Union (EU) and the European Economic Area (EEA) to develop a startup with high growth potential in Cyprus.

One strength of the island is the talent pool

One strength of the island is the talent pool, as Cyprus has one of the EU's highest number of graduates per capita. The local talent has recently been strengthened by tens of thousands of Russian and Ukrainian IT professionals who migrated to Cyprus to escape instability created by the war. Moreover, numerous international companies, including NCR, Viber, Logicom, Semrush, and Amdocs have established operational or corporate management functions in Cyprus. Ironically, the presence of job opportunities in these global firms, along with appealing career paths in the public sector, poses a challenge for startups. This is because the mindset of many talented individuals is focused on securing fulltime employment, rather than taking risks.

Notable initiatives to support entrepreneurs and attract foreign investors include Invest Cyprus and ARIS, a program jointly funded by Bank of Cyprus and the consulting firm Deloitte.

As well, CYENS is a multi-stakeholder research and innovation center with the participation of the Municipality of Nicosia, three public universities in Cyprus, and two international Partners (the University College London and the Max Planck Institute for Informatics) to empower knowledge and technology transfer in the country. Contributing to innovation in Cyprus, Tech Island is an NGO on a mission to turn Cyprus into a world-class destination for tech talent. Another NGO with the goal of stopping brain drain, Cyprus Seeds offers an 18-month program that includes grants, mentorship, and training.

Cyprus has established itself as a growing fintech hub

Cyprus has established itself as a growing fintech hub. The dynamic fintech movement includes startups offering services from real-time investment portfolio securitisation and advanced performance analytics to automated order processing.

Besides fintech, Cyprus is also home to some of the leading names in regtech, IoT, cybersecurity, and the gaming industry. Cyprus has also seen growth in Blockchain technology, and the University of Nicosia is the first university in the world to offer a Masters course in Digital Currency."

Cyprus has unrealised startup potential

Finally, the report says Cyprus has unrealised startup potential which is now being leveraged by an increasing number of start-up accelerators, incubators, and research institutions developing innovative projects. The government, it added, should create policies and incentives that support the launch of venture capital funds to promote entrepreneurship and startup culture. "In this way, the island can produce more success stories and become more recognisable in the global startup ecosystem,” it concluded.

StartupBlink’s Global Startup Ecosystem Index here