The triptych of research, innovation and technological development is the yeast for Cyprus to become a nucleus of innovation, with a clear plan for a new model, which leads to new jobs, added value and investment opportunities. This is stated in an interview with “F” by Dr. Nikolas Mastrogiannopoulos, Chief Scientist for Research and Innovation and President of the Research and Innovation Foundation, as the course so far has given significant results that encourage continuity, despite the obstacles posed by the pandemic.
An example is close cooperation with Israel, a cooperation with many benefits and prospects. At the same time, IDEK declares its readiness to support new innovative companies with substantial funding. The future of a country investing in R&D will bring multiple socio-economic benefits.
With Mr. Mastrogiannopoulos in mind, is it time for companies to invest in innovation?
Innovation gives businesses a competitive edge and added value. At the same time, it strengthens them with flexibility and resilience in dealing with unforeseen situations. Especially when the company is called to cope with a crisis caused by external factors, such as the pandemic. Innovation is a shield. As businesses operate in an ever-changing environment that makes investing in innovation imperative, I would say that the pandemic has essentially accelerated this trend. Today, investing in innovation and technology may be more necessary than ever. A significant number of Cypriot companies are already investing in innovation and I am sure that this percentage will increase in the future. In recent years, Cyprus has made significant strides in R&D, with the dynamics developing reflected in the recent results of international indicators. Our country is only 3% away from the category of Strong Innovators in the European Innovation Scoreboard, while it is ranked 28th in the Global Innovation Index, in a total of 129 countries. It is important, however, to realize that R&D is not one-dimensional. It governs horizontally every branch of economic activity. It is, in essence, the basis of the economy and our goal is to function as such for a new growth model.
What can we expect from the Cyprus-Israel cooperation in the field of research and innovation?
Strengthening synergies and exchanging know-how with countries with advanced ecosystems is high on our priorities. With Israel, known as the Startup Nation, we have been able to develop close cooperation in recent years, which opens up new perspectives and brings significant benefits to the domestic ecosystem. In this context, a bilateral agreement has been signed between the two countries to strengthen research and innovative entrepreneurship and a tripartite agreement between Cyprus, Greece and Israel. A practical result of these efforts is the Pafos Innovation Institute, which opened its doors last November and is a product of cooperation between the Municipality of Paphos and Reichman University. In addition, the Office of the Chief Scientist, together with the Foundation for Research and Innovation (IDEK), we recently organized in collaboration with MASHAV, the Israel Organization for the Development of International Cooperation, the Golda Meir MASHAV – Carmel International Training Center of the Ministry of Foreign Affairs of Israel, a series of educational workshops for the actors of the domestic ecosystem, which was a huge success.
Tell us more. How important are these training laboratories for the ecosystem?
Six online workshops entitled “Educating Trainers: Innovation & Entrepreneurship for Cyprus” were organized, in which participants had the opportunity to gain a holistic picture of Israel's experience and know-how in creating a successful innovation and entrepreneurship ecosystem. In particular, prominent Israeli speakers presented topics related to the development of innovation support structures, such as accelerators, business incubators, tech parks and knowledge transfer offices, as well as attracting high-risk investments. The response was impressive and we are very pleased. Such initiatives strengthen the synergies between the two countries and strengthen the Cypriot ecosystem. I would like to thank the Israeli institutions for their excellent cooperation and especially the Embassy of the State of Israel in Cyprus for their unwavering support.
New model, for new jobs
How can the competitiveness of Cyprus be strengthened on the international stage?
Cyprus owes and can become even more competitive internationally. Especially in the new era we live in, with peculiar conditions due to the pandemic. To achieve this, we need a new economic model of sustainable development, which strengthens the growth prospects and the resilience of the economy. The government's strategy in this direction is clear: To formulate a model that will create new jobs, added value and investment opportunities, based on the threefold research, innovation and technological development. To achieve this, upgrading national R&D investment, as well as increasing private sector contribution, are prerequisites. The big bet, however, is the effective conversion of this investment into value for the real economy by commercializing research results, through synergies and close cooperation of the research and business world. Equally important is the strengthening of the already dynamic community of start-ups and innovative enterprises, in an ecosystem that will be characterized by extroversion, will produce globally competitive products and services, and will create added value on a horizontal basis.
Did the pandemic change the direction of investors at all?
There are different types of investors. Some who invest in more “secure” sectors, institutional investors and funds, as well as high-risk investors. Obviously due to the pandemic, traditional pillars such as tourism and aviation are experiencing significant losses, as these sectors have been significantly affected. Investors, however, operate with a medium-long-term horizon and according to their risk appetite. Therefore, it is reasonable for investors with less risk to look for new opportunities for innovation and technology, but their main guide is to shield their existing investments and not so much to completely change course. Investors with a high risk appetite, on the other hand, are well aware that investing in a start-up has a longer horizon and greater risk but higher exponential growth prospects. In this regard, an economic model based on innovation expands the mix of the economy, strengthens traditional sectors and empowers young people, while also contributing to attracting investment.
Relocation of companies
The so-called headquartering is presented as one of the solutions for strengthening the Cypriot economy. What can this move mean for research and innovation?
Attracting value-added foreign direct investment to the real economy is a demand for every country. For a small country like Cyprus, it is a “key” not only for a rapid recovery of the Cypriot economy but also for its growth. Headquartering, ie the relocation of headquarters of international companies and especially in the field of Technology and Information Technology, further helps to expand the productive base of the economy. Their presence in our place, creates multiple benefits, as they contribute horizontally, creating conditions of prosperity. Among other things, new jobs are being created and tax revenues are being increased, both by companies and by employees. Cyprus has advantages of an ideal destination for attracting foreign companies. It is a member state of the European Union, offers easy access to the markets of Europe, the Middle East and North Africa and is safe and welcoming, with high quality human resources. With the recent adoption of the Rapid Activity Mechanism in terms of relocation of specialized personnel of technology companies, Cyprus has all the guarantees to strengthen its international competitiveness but also to become a regional R&D center, at a time when attracting foreign investment is vital.
After all, is the shift to innovation a matter of culture or mentality? Where are we;
I believe that one derives from the other and at the same time they feed each other. However, it is vital and therefore the cultivation of R&D culture at all levels is our top priority. A culture that will spark curiosity, awaken creativity and encourage entrepreneurship, giving space to innovative ideas to flourish, pushing young people to differentiate, chart new paths and evolve developments. I believe that it is our duty to lay the foundation stone for the consolidation of the culture of innovation, for it to flourish, to become a way of thinking, a mentality and to enrich our society. To help, if you will, give birth to others “crazy enough” to believe they can change the world, as Steve Jobs said. Our country's progress in R&D and the results it has achieved are an encouraging example of our potential. Building on them, we continue our efforts with dedication to convey the importance of E&K, keeping our eyes on the new generation that is, after all, the future of the place.
Support and funding for start-ups
How, Mr. Mastrogiannopoulos, can innovative companies benefit from the Foundation for Research and Innovation (IDEK)?
Creating a dynamic community of innovative and start-up businesses is our top priority. To this end, IDEK provides a wide range of financing programs and support services that enhance the ecosystem's efforts, helping it to become more competitive and efficient. The Business Innovation Programs “PRE-SEED”, “SEED” and “INNOVATE”, are the crown of our interventions. The main purpose is to transform innovative ideas into value-added products and services that will be internationally competitive, as well as to strengthen business extroversion. In total, 85 innovative and start-up companies received € 20.7 million in funding, creating 188 new jobs. We also proceeded to the signing of Memoranda of Cooperation with organized groups of companies and national authorities that promote the business development of the country to strengthen R&D partnerships between the private and public sectors. At the same time, we recently launched the “Innovation Factory” which aims to provide services to start-ups, with the aim of their development. In addition, the operation of the Central Office of Knowledge Transfer will begin soon, while the planning of the programs for the period 2021-2027 is in progress.
At risk is the forecast for 2021 and beyond
What picture can we expect, Mr. Mastrogiannopoulos, for 2021 and the coming years?
Due to the pandemic, it is difficult to predict exactly what the next day has in store for us. What is certain is that the best way to predict the future is to create it. Aware of the new data but also of the great need for effective research and innovation, we are working to implement government reforms to improve productivity and the competitiveness of the economy. At the same time, both I personally as a Lead Scientist and the competent bodies, remain committed to our actions and build on what we have already achieved, with the aim of creating a competitive, extroverted and efficient ecosystem, providing the right supplies and those opportunities that will help it evolve and bring multiple socio-economic benefits to Cyprus.
Photos: Dimitris Vattis
