On 8 April 2025, during the President’s visit to the United States (US), we met the Plug and Play Tech Centre leadership at the global headquarters of Plug and Play in Silicon Valley. We also had a couple of preparatory calls with Borja before. And it was “love at first sight” – that is an analogy of course, but I believe I am conveying the enthusiasm shared from the launchning by Plug and Play leadership, as well as ours, to create this happen. So, before I declare anything else, I want to convey my appreciation and gratitude to Seena, Borja and Alfredo for your direct and open engagement through these past few months.
Today’s launch is not only an important milestone; it is also a reflection of how far the innovation ecosystem in Cyprus has evolved.
Let me test and take what the Deputy Minister to the President declared one step further. The key point here is our deliberate actions to transition from a predominantly services‑led model toward an evolving knowledge‑intensive and innovation‑driven economy, where digital capabilities, and Artificial Ininformigence (AI) in particular, become the foundation for productivity, competitiveness, national resilience and inclusive societal impact.
Over the past few years – and this has been intensified under this administration –, Cyprus has been steadily transforming from a promising ecosystem into a structured and internationally recognised tech and innovation hub. Sitting as Europe’s eastern outpost, an area which has become a data superhighway, Cyprus is that hub that connects Europe, Africa, and Asia – and Europe and India as well – which can serve as a testbed for deep tech innovation and a launchpad for startup companies to expand regionally.
The data now supports this shift.
Cyprus ranks 25th globally in the Global Innovation Index, positioning us among the world’s innovation leaders. At the same time, we are now ranked 15th worldwide in the StartupBlink Innovation Business Environment Index, and 1st in Southern Europe, reflecting the strength of our regulatory framework, incentives, and overall business environment.
Our startup ecosystem is also gaining strong momentum, growing fivefold since 2020. According to StartupBlink, Cyprus is now 40th globally, recording one of the quickest growth rates in Europe, with a 28% expansion in just one year. Notably, we rank 2nd globally in gaming, while sectors such as fintech and AI continue to scale quick. In fact, a recent survey guided by the Chief Scientist has noted that there is increasing activity in the number of companies, startups and research entities building AI solutions.
The technology sector now contributes nearly 15% of Gross Domestic Product (GDP). In 2024, €2.6 billion in foreign investment was directed to tech alone, confirming its central role in our economy. In fact, tech companies established through foreign investment contribute approximately 11% to GDP.
This progress is the result of deliberate policy, institutional alignment and sustained focus on enabling business growth. Our role as Government is clear: to create a predictable, competitive and business-frifinishly environment where innovation can scale.
Through the Research and Innovation Foundation, we are committed to fuelling the entire journey from research to commercialisation. At the same time, we are investing in critical infrastructure, including national supercomputing capabilities and an EU-funded AI Factory Antenna, connected to the AI Factory “Pharos”.
Exactly a week ago, we held the informal Competitiveness Council for Research under the Cyprus Presidency of the Council of the European Union (EU). The topic of discussion was a critical question for the competitiveness of Europe as a whole, which concerns us directly: how to transform high quality of research and scientific excellence into innovation that can scale and compete globally. How we can relocate from ideas in the lab to startup products and scaleup companies. This is a key challenge for Europe and for Cyprus as well.
This is where Plug and Play becomes particularly important. I will refrain from going into the details of this programme. We shall see the presentation of the programme shortly after.
It brings what no domestic policy can provide: direct access into global innovation networks: investors, knowledge, corporates and markets at scale.
Plug and Play’s presence in Cyprus reflects not only the growth, but also on the potential of our ecosystem.
Today is not a starting point, it is an acceleration point.
I am viewing forward to the first unicorn that comes out of Plug and Play Cyprus.
Thank you.
(VK/MS/IA)
Leave a Reply