Digital transformation key to Cyprus’ growth, says ministry official
Research Deputy Ministry official Georgios Komodromos on Tuesday said that digital transformation is crucial in improving the country’s competitiveness and economic growth.
In a statement, Komodromos outlined the government’s vision for Cyprus to become a regional centre for technology and innovation, saying that Cyprus is currently in its strongest position to pursue this goal.
“The vision of establishing Cyprus as a regional hub for innovation and technology is closely linked to the country’s digital transformation and the creation of a comprehensive digital ecosystem,” said Komodromos.
“The government”, he explained, “has made significant strides through reforms that have strengthened the country’s reputation for stability and potential”.
He also said that “Cyprus’ unique geographical location, acting as a gateway between three continents, has further bolstered its strategic position”.
“Cyprus is a conduit between developing regions in the field of technology,” he stated.
“This is a critical asset we must leverage further to showcase the country’s potential as a technology and innovation centre and as an investment gateway from and to the EU,” Komodromos added.
Moreover, he said that the island’s conditions are “ideal for attracting productive investments that will fuel further economic development”.
Komodromos pointed out that the country’s tech sector has been rapidly expanding in recent years, now contributing around 10 per cent of Cyprus’ GDP.
Moreover, the island is now home to a growing community of multinational companies and startups.
“The technology sector has seen the greatest percentage increase in recent years, contributing about 10 per cent of the GDP,” he noted.
Komodromos cited recent European and global reports that indicate Cyprus’ upward trajectory in various digital transformation and innovation metrics.
These reports, he explained, are “critical reference points for foreign investors”, helping to bolster the island’s attractiveness as a competitive business destination.
“The progress made in developing the digital ecosystem and modernising the country is highlighted in recent European and international indicators, which foreign investors view as key references,” said Komodromos.
The ministry, he noted, “carefully analyses these reports and takes action to address any weaknesses in order to keep Cyprus on a path of continuous improvement”.
Among the indicators mentioned was the State of the Digital Decade Report, which evaluates EU member states’ digital readiness and progress towards the goals of the 2030 Digital Decade.
According to the report, Cyprus is experiencing a steady upward trend in several key areas, with particularly strong growth in gigabit connectivity infrastructure and the percentage of Information and Communication Technology (ICT) specialists in the workforce.
Cyprus, he said, “has also excelled in the realm of innovation, ranking among Europe’s Strong Innovators for the third consecutive year”.
According to the European Innovation Scoreboard 2024, Cyprus has achieved the highest performance improvement across Europe, showing a 39 per cent increase since 2017.
Globally, Cyprus is ranked 28th out of 135 countries in the Global Innovation Index 2023 and holds the second position among North Africa and West Asia countries.
“In the European Innovation Scoreboard, Cyprus is ranked among Europe’s Strong Innovators for the third consecutive year, achieving the largest performance improvement Europe-wide,” Komodromos stated.
He also noted that Cyprus made significant strides in patent applications, showing a 23.3 per cent increase, and in 2024, the country climbed nine spots in the Global Startup Ecosystem Index to 45th place, making it into the top 50 for the first time.
While Cyprus’ digital and innovation landscape has grown, Komodromos acknowledged that there is still room for improvement.
“There are, of course, areas that need targeted action to ensure we stay on the path of progress and achieve even more,” he said.
“Our aim is to build on the momentum created, to implement solutions and tools with an immediate impact on both the country’s competitiveness and people’s daily life, and to create even more favourable conditions and opportunities for further strengthening the Cypriot ecosystem,” he concluded.