Government highlights progress despite small size and structural challenges

Cyprus has been ranked among the top countries worldwide for innovation in the Global Innovation Index (GII) 2025, released by the World Intellectual Property Organisation (WIPO).

The island climbed two places compared with 2024, continuing its upward trajectory in recent years, and now sits 25th out of 139 economies, earning the status of Innovation Leader, which recognises countries performing above expectations based on their level of development.

Cyprus retains the second spot in the Northern Africa and Western Asia region, following Israel.

This strong position was achieved in a highly competitive region, where 14 out of 18 economies improved their rankings in 2025.

“The country also ranks 16th globally in innovation outputs, highlighting that its investments in innovation are translating into tangible products and services with a positive impact on the economy and society,” the Deputy Ministry of Research, Innovation and Digital Policy said in an announcement on Wednesday.

Cyprus is among the countries with the most top positions in individual GII indicators, alongside global powers such as the United States, Israel, China, and Singapore.

The island ranks first in mobile application creation, exports of cultural and creative services, ICT service exports and imports, and co-investment by venture capital investors, reflecting growing international confidence in Cyprus’ innovation ecosystem.

“Other indicators also showcase the dynamism of Cyprus’ ecosystem, including second place in industrial designs, fifth in net inflows of foreign direct investment, and eighth in attracting foreign students,” the ministry stated.

Cyprus also ranks 11th in creative outputs, “emphasising the island’s potential in creativity and cultural sectors”.

The GII report highlights areas for improvement, including high-tech imports, the size of the domestic market, and the share of graduates in science, technology, engineering, and mathematics (STEM).

The report also stresses the need to further increase funding for start-ups and growing enterprises.

“We are particularly pleased with the continued upward trajectory of Cyprus in the Global Innovation Index, which demonstrates the dynamism and potential of our ecosystem,” said Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou.

“These results confirm that, despite our small size, Cyprus can overcome structural challenges and become a regional hub for innovation, creativity, and technological development,” he added.

“This progress encourages us to continue with targeted policies that invest in research, innovation, entrepreneurship, and our human capital,” Damianou concluded.