Cyprus was ranked 25th out of 139 countries in the 2025 Global Innovation Index, which was prepared by the World Intellectual Property Organization (WIPO). This is a notable accomplishment for such a small nation, which continues to strengthen its position on the international stage despite its limited resources and structural challenges.
Breakthrough in global innovation ranking
Compared to 2024, Cyprus rose two places to enter the 'Innovation Leaders' category — countries that achieve results exceeding expectations given their level of economic development. The Minister of Research, Innovation and Digital Policy, Nikodimos Damianou, noted that Cyprus's progress confirms the potential of the local ecosystem and its ability to transform into a centre of technological and creative development in the region.
Regional leadership and international recognition
Cyprus retained second place in the Middle East, North Africa and West Asia region, behind only Israel. In an increasingly competitive environment where most economies in the region improved their positions in 2025, this stability highlights the resilience and momentum of Cyprus's innovation strategy.
Furthermore, Cyprus ranked 16th worldwide in terms of innovation performance, meaning it has successfully transformed investments into new products, services, and technologies that impact the economy and society.
These achievements put Cyprus among the world's top players
The island nation was among the world leaders in selected Global Innovation Index indicators. Key successes include first place in mobile app development, cultural and creative services exports, and international trade in IT services. Cyprus also ranked among the top five countries worldwide for venture capital activity, reflecting investor confidence in the Cypriot ecosystem.
Notable successes in other areas include second place for the number of industrial designs, fifth place for foreign direct investment inflows, eighth place for the number of foreign students, and eleventh place for the creative industries. These indicators underscore the country's growing role as an attractive centre for science, education and business.
Prospects and challenges
Despite this impressive progress, experts note the need for further development. Priority areas include increasing investment in high technology, expanding the domestic market, raising the number of STEM graduates, and supporting start-ups and fast-growing companies.
The Cypriot government has announced its intention to continue strategic reforms, strengthen international cooperation and invest in human capital, with the aim of strengthening the country's position in the global innovation ecosystem.