Nicosia: We want to build on the technology sector momentum, on the strength of the economy and on our elevated geopolitical role, and solidify Cyprus as a hub, not just for technology, but also for innovation, for skills and for knowledge, Deputy Minister for Research, Innovation and Digital Policy, Nicodemos Damianou, said on Thursday, in his presentation during the Digital Agenda Cyprus Summit held in Nicosia.
According to Cyprus News Agency, the Cypriot research and innovation ecosystem was ranked two places higher this year on the Global Innovation Index, taking 25th place globally. Cyprus is currently experiencing a surge in startups, with approximately 100 new startups every year, which is six times more than in 2020. The nation was awarded first prize by the EU Commission at the European Digital Connectivity Awards of 2025 for its nationwide project of rolling out gigabit connectivity in non-urban areas, covering 100% of the population with high-speed gigabit Internet.
The Deputy Minister emphasized that the pace and level of change in technology is compelling governments to integrate technology across their policies and strategies. He highlighted a global race for AI investments, semiconductors, and critical earth minerals, drawing comparisons to initiatives in the US and China. Damianou also mentioned the European Commission’s plan to establish AI gigafactories, though the EU is facing challenges in making this growth sustainable and attracting private investments.
Citing Nobel prize winner Demis Hassabis, Damianou stressed the importance of avoiding the pitfalls of social media in the development of AI. He noted Cyprus’s participation in a new European Commission initiative for the protection of minors online.
In Cyprus, the technology sector is seeing double-digit growth, with significant activity in AI. Damianou outlined priorities like fixing legacy infrastructure, adopting cloud computing, and enhancing data management across government systems. Key projects include a new school management system, post office counter automation, and the integration of various government systems to improve technical capabilities and interoperability.
Further developments include redesigned ministry websites, the Digital Citizen app with 120,000 users, and the Digital AI assistant, which has addressed nearly 200,000 inquiries. Damianou also mentioned upcoming services in social insurance, welfare, town planning, and a call center to support citizens.
Regarding AI integration in government, the Deputy Minister announced the AI strategy to be delivered by the National AI Task Force by year-end, in collaboration with the Greek government through the AI factory, Pharos, to build a common Greek language AI space.
Damianou highlighted the importance of integrating government tools like eID, eSignature, and eInvoicing with industry to benefit citizens. He also announced the upcoming Smart Citizen Act, based on the AI-enabled Smart Cycles project, to foster innovation in collaboration with local authorities.
In conclusion, Damianou noted Cyprus’s leadership in connectivity in Europe, underscored by its award-winning gigabit connectivity project, which ensures comprehensive high-speed Internet access across the nation.