On Tuesday, 15 July, the European Commission published its annual European Innovation Scoreboard report for 2025, containing the results of a comparative analysis of EU countries' innovation systems and their ranking in terms of innovation development. Compared to 2024, Cyprus's score fell by 14.6 points. In the overall ranking, the island nation scored 84.1 points, placing it in the ‘moderate innovators’ category.
Cyprus' ranking in the EU and among its neighbours
Despite the current decline, it has shown an overall increase in innovation activity of 17.6 points since 2018. It ranks 17th among EU member states and 21st among its neighbours. However, even within the 'moderate innovators' category, the average score for EU countries is 85.9, meaning that Cyprus' performance is below the European average.
Cyprus' strengths in innovation
Cyprus continues to stand out in a number of key areas. It leads the EU in the number of trademark applications filed, has an impressive track record of joint publications between the private and public sectors, enjoys a high level of international scientific cooperation and ranks third in the EU in terms of the proportion of the population with higher education qualifications. These achievements confirm that Cyprus has high-quality human capital and is actively involved in global scientific cooperation.
Strengths and weaknesses
However, the report highlights that Cyprus faces serious obstacles to sustainable innovative growth. The main ones are:
- The island ranks last in the EU for imports of high-tech products from countries outside the European Union;
- Minimal business investment in R&D (research and experimental development);
- It also ranks 25th in terms of venture capital attraction.
- Weak government support for innovation at only 19.9% of the EU average.
- Private sector investment in innovation is only 35.9% of the European average.
However, it should be noted that Cyprus shows more encouraging results in innovation not directly related to scientific research, reaching 83.1% of the EU average. The country is also making steady progress in digital transformation and technological infrastructure.
- The use of cloud technologies is expanding,
- Internet speeds and access to broadband networks are improving.
- The proportion of foreign students enrolled in postgraduate studies is growing.
- The number of joint publications involving the private sector is also increasing.
However, there have also been some negative developments in Cyprus over the past year. The number of innovative small and medium-sized enterprises (SMEs) interacting with partners has decreased, as has the number of SMEs implementing business processes, and employment in innovation-intensive companies has fallen.
The overall picture in the EU
Across Europe, innovation activity declined slightly by 0.4 points compared to 2024. However, only 13 EU member states improved their performance. Malta and Luxembourg showed the most progress in 2025, while Cyprus was among the countries with the largest declines. The European Commission notes that the slowdown in innovation amid global instability and growing competition requires more decisive action at both the national and EU levels.
In order not to lose its position in scientific and technological development, Cyprus needs to overcome current barriers, particularly in the areas of R&D funding and private investment incentives.