Research and Innovation in Cyprus

Research and Innovation in Cyprus InnoFun, Hilton, 5 th June 2014 Dr Panayiotis Philimis, President CARIE

Cyprus Innovation Strategy 2004: Development of Innovation Strategy for Cyprus 2005: The Minister Council approves the Strategy and Action Plan 2008: The Target in R&D Expenditure is set to 1% for 2020 2010: The Target is revised in R&D Expenditure to 0.5% for 2020 2010: 26 th in EU-27!!! Indicator Year 1992 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Expenditure in RTD % of GDP % 0,18 0,22 0,24 0,25 0,30 0,35 0,37 0,40 0,43 0,44 0,42 0,49 0,50 Page 2

% Euro to Cypriot SMEs in FP7 Report 2012: 35.4% Euro to SMEs!!! Publication RPF 2012 Latest Results by 02/ 2014 36.7 % 1 ST in Europe Page 3

% Euro to Cypriot SMEs in FP7 FP Performance and wider innovation indicators for Cyprus Benchmarked to EU 28 and EU 13 averages Source: Eurostat, 2011 and Sixth monitoring report FP7 Cyprus has the highest number of FP7 beneficiaries per head of population and the highest gain of FP7 monies per inhabitant in the EU 13 (78.80, EU 13 average is 13.5). Page 4

Global Innovation Index 2011 (By INSEAD 2011) Ranked 27 th Globally!!! Page 5

Innovation Scoreboard 2011 Page 6

Cyprus business forecast Report, Q3 2014 10 years forecast 2023 (by Business Monitor international) Page 7

Structure of Cyprus Research and Innovation - 2004 Page 8

Structure of Cyprus Research and Innovation - 2007 Council of Ministers National Council of Research and Innovation (9) Cyprus Scientific Council (19) Planning Bureau Research Promotion Foundation, RPF Board of Directors (13) PUBLIC SECTOR ENTERPRISES ACADEMIA RESEARCH ORGANISATIONS Page 9

Proposal for National Strategy on Research, Innovation and Entrepreneurship Announced 26 th March 2014 Page 10

Innovation Activities 2003 2007 : Incubators Program Submit Business Plan Formation of Company 200,000 funding (De-minimis) o 17,000 by the inventor 24 Months 2003-2007 4 New Incubators Formed Program for new High-Tech Enterprises in Incubators 35 New enterprises were formed (19 are still operating) 64 New positions 27 Patents Granted!!! 2007 Transfer of programs to RPF Public Discussion in 2009 PROGRAM FREEZED!!! Page 11

Research & Innovation Activities 2008-2012: RPF RPF Research and Innovation Funding to Enterprises Calls: 2008, 2009, 2011 < 15% of the RPF Budget to Enterprises for 2007-2013!!! Page 12

Research and Innovation Activities 2008-2012: RPF Innovation Networks Not Implemented by RPF Technology platforms Mediation Centers Not Implemented by RPF European Social fund Innovation Coupons Consultancy Services ( 5000) Intellectual property Restricted to result of a Research program INNOVATION COUPONS APPLICATIONS FUNDED 2008 18 15 75000 2009 23 9 45000 2010 100000 INTELLECTUAL PROPERTY APPLICATIONS FUNDED 2008 6 1 24000 2009 FREEZED 2010 <5 80000 Page 13

CYPRUS ASSOCIATION OF RESEARCH AND INNOVATION ENTERPRISES Formed in 2010 35 Members Criteria: > 100,000 Annual R&D Expenses or > 10% of Annual Income to R&D Expenses > 15% of Operational Expenses to R&D the last 2 years Page 14

CARIE Immediate Targets Increase the Research and Innovation Activities in Enterprises Promote the Support by Government to Enterprises in R&D Activities Development of Research and Innovation Infrastructures in Enterprises Increase of Researchers Employed in Enterprises Promote collaboration with Academia, RO &Public Bodies - Technology Transfer Page 15

Research and Innovation Sectors Information Communication Technologies ICT Manufacturing Production and Processes Microelectronics & Microstructures Energy Health & Biotechnology Environmental Technologies Military and Security Transportation Scientific Services & Consulting Page 16

Research Infrastructures - Laboratories The Members of CARIE have invested in Research Infrastructures and labs where High Level of Applied Research and Innovation Activities lead to novel Products and Services for Global Markets. Researchers employed > 200 Research Infrastructure > 20Μ Funding from Government < 5% Collaboration with other Organisations in EU High level of Applied Research and Innovation Activities and Training for Design and Development of Novel Products and Services Page 17

Statistics Scientific Research Staff 20% PhD 70% Masters 10% Batchelors Patents / Trademarks > 50 International patents > 30 Trade marks Scientific Publications > 600 presentations in International Conferences > 200 articles in peer reviewed journals > 50 Βοοk Chapters Evaluators/ Scientific Experts Evaluators/Reviewers in FP7, REA, EUREKA, EUROSTARS, Intelligent Energy κ.α. Evaluators of Research programs in other Countries Scientific Experts για European Agencies (EDA), Scientific forums και Industrial initiatives National Representatives in COST Evaluators in Scientific Journals and Conferences Members of EARTO Page 18

Activities of CARIE to promote the interests of its Members Meetings with Planning Bureau, RPF Director, ex. Financial Minister, General Audit Officer, ex. Minister of Commerce & industry, several parliament members, 3 Presidential Candidates etc. Tight Collaboration and Several meetings with Technology Sector in Ministry of Commerce Tourism for the Design and Development of Innovation Programs for 2012-2013 and for 2014-2020 Promotion of Research and Innovation in Cypriot Enterprises through presentations in Chambers of Commerce, Academia, Technology Exhibitions, Scientific and Technological Conferences, workshops etc. Page 19

Collaboration of CARIE with Technology Sector in Ministry of Energy, Commerce, Industry and Tourism (MCIT) FIRST INNOVATION CALL 2012 : 4 million Euro Budget Bottom Up Approach by MCIT During the design of program several visits of MCIT Officers in > 50 enterprises for getting first hand feedback of Innovation Activities More than 10 meetings of CARIE Board members with MCIT officials Announcement of innovation programs by MCIT in 2012 Several Workshops with large participation by enterprises Submission of 83 eligible proposals for Innovation program in October 2012 from various Sectors of the Industry and Service Sectors (Horizontal Approach) Sep. 2013 announced results: 40 Funded Innovation projects Page 20

Collaboration of CARIE with Technology Sector in Ministry of Commerce, Industry and Tourism (MCIT) INNOVATION PROGRAMS FOR CYPRUS, 2014 2020 Bottom up Approach followed Several Workshops, and meetings throughout Cyprus for a period of 1 year Feedback from > 200 organisation from Enterprises, Associations, Incubators, Academia and RO PROPOSED Budget: 1Billion, 600mil. funding, contribution by Enterprises 400mil. Five Main Pillars Development of Innovative Products, Services and Processes, Employment/Training Startups (y-combinators, accelerators. etc ) Cooperation for Innovative Products, Services and Processes Developments (Open Innovation etc.) Infrastructures (BIC, Innovation Centres, Clusters, Crowd Funding, Smart Cities, Technology Transfer Centers, etc) Promotion of Innovation (innovation packages including support services, promotional activities, patenting, product certifications, internationalization etc.) Page 21

Collaboration of CARIE with Technology Sector in Ministry of Commerce, Industry and Tourism (MCIT) Page 22

Collaboration of CARIE with Technology Sector in Ministry of Commerce, Industry and Tourism (MCIT) ΕΤΗΣΙΑ ΑΠΟΔΟΣΗ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ΑΕΠ (Πρόβλεψη* σε δισ. ευρώ) 16.32 15.69 15.88 16.19 16.61 17.03 ΑΕΠ (Πρόβλεψη* σε %) -8.8% -3.9% 1.2% 2.0% 2.6% 2.5% 2.2% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Συμβολή Προυπολογισμού Στρατηγικής Kαινοτομίας σε ΑΕΠ (σε δισ. Ευρώ) Συνεισφορά σε Δαπάνες για Έρευνα, Ανάπτυξη και Καινοτομία (%) 0.125 0.120 0.145 0.140 0.165 0.140 0.165 0.98% 0.95% 1.27% 1.36% 1.68% 1.65% 1.97% 17.41 17.75 18.20 18.74 19.40 20.17 21.08 Νέα καινοτόμα προϊόντα / υπηρεσίες 751 822 822 893 893 893 893 982 1080 1188 1307 1437 Συμβολή Νέων καινοτόμων προϊόντων / υπηρεσίων σε ΑΕΠ (σε δισ. Ευρώ) 0.09 0.20 0.30 0.41 0.52 0.63 0.75 0.87 1.00 1.15 Νέες Καινοτόμες Επιχειρήσεις 81 96 140 159 208 227 275 303 333 366 403 443 Συμβολή Νέων καινοτόμων Επχειρήσεων σε ΑΕΠ (σε δισ. Ευρώ) 0.02 0.04 0.06 0.10 0.14 0.18 0.24 0.30 0.36 0.44 0.52 0.61 Αριθμός συνεργασιών 5 7 7 9 9 9 9 Αύξηση ΑΕΠ (σε δισ. Ευρώ) 0.14 0.16 0.30 0.43 0.60 0.73 0.92 0.93 1.11 1.31 1.52 1.76 Αύξηση ΑΕΠ (%) - ΑΠΟΔΟΣΗ ΣΤΡΑΤΗΓΙΚΗΣ 0.9% 1.0% 1.8% 2.5% 3.4% 4.0% 4.9% 4.9% 5.6% 6.3% 7.0% 7.7% Ενεργό Ανθρώπινο δυναμικό** (σε άτομα) 336,091 347,680 356,595 363,281 369,968 372,196 374,425 376,654 378,882 381,111 385,569 387,797 390,026 Άνεργοι (Πρόβλεψη** σε άτομα) 109,653 98,064 89,149 82,463 75,776 73,548 71,319 69,090 66,862 64,633 60,175 57,947 55,718 Άνεργοι (Πρόβλεψη** σε %) 24.6% 22.0% 20.0% 18.5% 17.0% 16.5% 16.0% 15.5% 15.0% 14.5% 13.5% 13.0% 12.5% Συμβολή Στρατηγικής καινοτομίας στην Βιώσιμη εργοδότηση ( 351 896 1,622 2,601 3,852 5,304 7,109 8,531 10,237 12,284 14,741 17,690 Μείωση Ανεργίας επι του Συνόλου εργαζομένων (%) 0.08% 0.20% 0.36% 0.58% 0.86% 1.2% 1.6% 1.9% 2.3% 2.8% 3.3% 4.0% Αύξηση εξαγωγών καινοτόμων προϊόντων και υπηρεσιών*** σε δισ. Ευρώ 0.07 0.08 0.15 0.22 0.30 0.37 0.46 0.47 0.55 0.65 0.76 0.88 Αύξηση εξαγωγών καινοτόμων προϊόντων και υπηρεσιών*** σε % 14.1% 15.5% 30.2% 43.2% 60.1% 73.3% 92.5% 93.2% 111.0% 130.6% 152.1% 175.9% * Source : Commission services calculation 2013-2020. Προβλέψεις 2021-2025 για ΑΕΠ βασίζεται στον κατά μέσο όρο αύξηση την τελευταία 10ετεία ** Προβλεψη για 2013 από πανεπιστίμιο Λευκωσίας. Από 2014-2025 βασίζεται σε μείωσεις που προβλέπονται βάση της ανάκαμψης της οικονομίας *** Υφιστάμενες εξαγωγές (500 εκκατομύρια Ευρώ). Οι προβλέψεις βασίζονται σε 50% της απόδοσης των εισοδημάτων ΑΕΠ, να αναλογουν σε εξαγωγές νέων προιόντων και υπηρεσιών Page 23

Collaboration of CARIE with Technology Sector in Ministry of Commerce, Industry and Tourism (MCIT) INNOVATION PROGRAMS FOR CYPRUS, Horizon 2014 2020 PROPOSAL BY MCIT Funding 600 Million, Total Budget 1 Billion Euro EXPECTED IMPACT 2.3 Billion Total by 2020, (8 Billion by 2025) 2% R&D Annual Expenditure by 2020 (3% by 2025) 5% increase of GDP by 2020 (7.5% by 2025) 7000 new positions by 2020 (17700 by 2025) 0.46 Billion (90%) increase in exports by 2020 (0.88 Billion, 175% by 2025) Preliminary allocation to MCIT by DG EPCD for Innovation Activities during 2014 2020 is 25 million Euro and is by 95% less of what has been requested!!!!!! Page 24

WHAT SHALL BE DONE TO BOOST RESEARCH AND INNOVATION ACTIVITIES IN CYPRUS Results from FP7 shows that Cypriot SMEs are 1 st in Europe with regards to the % of Euro allocated. New vision and plan shall be established for promoting and assisting the Enterprises in participating in Research and Innovation Programs in Horizon 2020. Build an Innovation Ecosystem Allocation of much higher amounts for funding Innovation Activities from the Budget of Structural / Cohesion funds for 2014-2020 Key to Success is the Development of Local Business & Innovation Centers to Support Innovative Enterprises Change R&D Expenditure Target to at least 2% of GDP for 2020. Can be achieved by providing : Tax Incentives will assist to increase by 0.5-1% of R&D Expenditure (Not currently declared by enterprises) Enterprise Member Associations (CARIE, OEB, KEBE) should participate in all Policy and Scientific Committees that are related to Research, Innovation and Entrepreneurship Immediate Implementation of the proposal for National Strategy on Research, Innovation and Entrepreneurship announced by the government linked with funding from Structural Funds Page 25

CONTACT DETAILS CYPRUS ASSOCIATION OF RESEARCH AND INNOVATION ENTEPRISES CARIE P.O.Box. 21455, 1509 Nicosia, Τel. 22-889800, Fax. 22-665685 www.cy-research.com info@cy-research.com Page 26