The Cyprus Employers and Industrialists Federation (Oev) and non-profit association TechIsland on Friday signed a memorandum of understanding aimed at strengthening cooperation on technology, innovation and entrepreneurship in Cyprus.

The agreement establishes a structured framework for collaboration and coordination between the two organisations and their members, with the shared objective of creating conditions that can strengthen Cyprus’ innovation ecosystem and the growth potential of the economy.

Under the memorandum, Oev and TechIsland will develop joint initiatives and policy proposals in areas directly affecting the business environment and the development of innovation.

These will include efforts to improve the regulatory and tax framework, develop physical and digital infrastructure, and create more favourable conditions for attracting and retaining investment, businesses, entrepreneurs and skilled workers.

The two organisations will also focus on strengthening digital and technological skills among the workforce.

This will include the upgrading and reskilling of workers, as well as closer links between education and vocational training and the actual needs of the labour market.

The agreement places particular emphasis on ensuring that skills development keeps pace with technological and economic changes and supports the needs of businesses operating in Cyprus.

Oev and TechIsland said the memorandum forms part of their longer-term efforts to promote the continuous modernisation of the economy and its transition towards a more sustainable development model.

The announcement further explained that technology and innovation are viewed as fundamental components of efforts to increase productivity and competitiveness.

The cooperation is also intended to bring the organisations closer together in developing proposals and initiatives that can support the wider business and innovation ecosystem.

The memorandum therefore covers both policy-related issues, such as taxation, and practical areas including infrastructure, investment, workforce skills, education and vocational training.