Ladies and Gentlemen,
Distinguished guests,
I would like to take my turn to thank and congratulate the organisers of the 13th Nicosia Economic Congress, who for the 13th consecutive year give the opportunity to protagonists in the economic life of the country, executives and members of the business, academic and scientific community, as well as representatives of the state, to interact, present our positions and engage in a fruitful exchange of ideas and views, always with the common goal of a thriving Cypriot economy.
The distinguished futurologist Gerd Leonhardt stated a few years ago that "never in human history has the present been so temporary" and that "humanity will change more in the next 20 years than in the last 300 years".
It is therefore imperative that we keep pace with the imperatives of the modern era of rapid technological developments so that businesses and the wider economy can be both sustainable and competitive. The completion of the digital transformation of our country's economy plays a vital role in this direction. The Republic of Cyprus has developed and is implementing a National Digital Strategy, which expresses an ambitious vision to make Cyprus a competitive regional hub with a future-ready society and a knowledge-based economy, thanks to digital technologies.
Digital Cyprus is being implemented in three dimensions. These include the development of citizen-friendly services through the gov.cy digital platform that will include all government websites, the European personal digital wallet, which will allow citizens to request, receive, store and securely share certificates issued by government agencies, the digitisation of the judicial system, electronic identities and signatures, these are some of the many projects we have in the pipeline for implementation and application. These new information systems, combined with the digitization of the relevant services, will significantly upgrade the operation of the public sector and the service to citizens and will drastically reduce the time needed to process tasks.
At the same time, the digital infrastructure is being upgraded, through the coverage of all remote areas of Cyprus with high-speed broadband networks. The Smart Cyprus project is also at the heart of our efforts. The Deputy Ministry of Research, Innovation and Digital Policy is coordinating the preparation of a National Strategy Framework for the development of smart cities across Cyprus, totalling €35 million from the Recovery and Resilience Plan. To this end, a study has been completed in 2022 and the functional and technical specifications for the creation of the "CY Smart City Platform" have been defined.
A roadmap has also been designed for the implementation of the solutions that will be integrated in the platform in the first stage: smart parking, smart lighting, and smart waste management. Within 2023, a tender will be launched for the creation of the platform and for the supply of the relevant sensors on the basis of a nationwide needs inventory. The Smart Cyprus project is expected to contribute to the optimal use of the country's resources, the protection of the environment and the implementation of the circular economy, always with a view to improving the quality of life of citizens.
In the National Digital Strategy, in the axis of the digital economy, actions are implemented that aim to facilitate the digital transformation of businesses and encourage innovative activity. We have recorded the training needs of business staff members in a study and are already planning targeted training programmes to further develop their digital skills.
For the period 2021-2027, a programme with a total budget of €30 million has been designed to subsidise the digital transition of businesses, including the use of cutting-edge technologies such as artificial intelligence, blockchain and cloud computing services.
The widespread integration of digital technologies is expected. As part of the National Action Plan for Digital Skills, the development of the Citizens' Digital Academy platform is planned, where citizens will have free access to educational material. A series of actions aim to reform school curricula, promote careers in science and technology and develop a culture of entrepreneurship.
The government places particular emphasis on attracting high-tech companies. To this end, a comprehensive framework of measures has been adopted to make Cyprus more attractive as an investment destination.
A strong incentive is the new intellectual property tax regime, the so-called "IP Box". Under this, any company that owns intellectual property and transfers its rights to Cyprus receives a tax relief of 80% in corporate tax, which means that its taxable income is reduced from 12.5% to 2.5%.
In addition, a Business Facilitation Unit has been set up for companies operating or wishing to operate in Cyprus. Through this unit we are achieving a significant reduction in the operating costs of businesses and the state, while making the country an attractive destination for international companies.
It is worth noting that the government itself intends to use high technology such as blockchain, AI and cloud systems. AI will be used for fraud detection mechanisms in social security systems. Blockchain is being used in a pilot project aimed at simplifying the certification of academic qualifications. Also, government IT systems will operate in a hybrid cloud environment in the near future.
Regarding the Research and Innovation sector, the Ministry of State has put the promotion of business innovation at the heart of its policy, with an emphasis on the exploitation of research results.
Cyprus is undoubtedly a country with significant potential in Research & Innovation, which is demonstrated through an impressive and rapidly growing R&D ecosystem, with high quality academic and research institutions and a thriving entrepreneurial community. Cyprus has already made remarkable progress towards a knowledge-based economy, which is reflected in improved scores in innovation performance and digital readiness at European and global level.
- Cyprus is ranked 20th out of 27 EU Member States in the 2022 edition of the Digital Economy and Society Index (DESI), moving up 4 places in the last 2 years.
- Cyprus has also entered the category "Strong Innovators" in the European Innovation Performance Scoreboard 2022, moving up to 10th place in the overall ranking of EU Member States.
However, there is still a long way to go to achieve a fundamental transformation of our economy and society. Our efforts are focused on enabling researchers, entrepreneurs and all creative minds to gain access to resources including state-of-the-art research infrastructure and facilities, knowledge, finance and human capital, in order to create innovative businesses that will be able to succeed on the international market with innovative products and services. We are implementing, for example, the Innovative Enterprises Scheme, through which innovative enterprises are certified and tax exemptions are granted to individuals and legal entities investing in them. We are also encouraging business cooperation with research centres and promoting tools for business access to publicly funded research infrastructures. At the same time, we plan to create a digital register for innovative and start-up companies, with the aim of enhancing their networking and extroversion in order to attract investment.
Finally, through the Research and Innovation Foundation, we promote funding programmes, exclusively for businesses, which aim to further develop start-up entrepreneurship and the effective participation of businesses in the creation of innovative products and services. Specifically, for the period 2021-2027, more than €150 million is expected to be made available through the national funding programmes, of which 40% will be allocated to business activities.
In conclusion, the initiatives implemented across all axes - digital governance, digital infrastructure, digital economy and digital society - lay the foundations for the full transition of our country to the new era of creating a digital Cyprus.
A Cyprus that has made the most of its potential to become a technology and innovation hub in the Mediterranean region.
Thank you very much and I wish you every success.
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