POLICY MIX PEER REVIEW OF CYPRUS by CHARIS SOTERIOU Planning Officer

1. POLICY MIX PEER REVIEWOF CYPRUSby CHARIS SOTERIOUPlanning Officer PLANNING BUREAU

2. The Peer Review Team

3. The Process

4. Overall Findings Cyprus has �made notable progress in building a research system and in creating a vision for its development towards a knowledge based economy, not least through its commitment to the public funding of R&D�. Notable achievements: Sustained increases in R&D and Innovation public funding Introduction of a range of interventions based on review of best practice in Europe and worldwide R&D capacity-building initiatives which address human resources and applied research and innovation.

5. R&D and Innovation Performance

6. Overall Findings (2) Absence of a coherent strategic framework Lack of �research tradition� in public and political mindset Impressive growth of research funding but lack of focus/prioritisation Shortage of basic infrastructures for research & research support services Historic outflow of researchers, nascent HE sector, more lifelong learning needed, lack of researchers in private R&D, ambition to increase (regional) attractiveness of Cyprus No clear dedicated research funding stream/agency for industry Low levels of R&D interaction and knowledge exchange between public and private sectors, opportunity for policy tools promoting dialogue, start-ups and spin-offs Need for focused stakeholder engagement Need for more attention to development and effective use of relevant policy tools, and personnel to apply them

7. Recommendations Strategy People Financial Implications Linkages Governance

8. Main Message Governance bodies National Research Council Cyprus Scientific Council Mechanisms for stakeholder engagement Inclusive Strategic Plan and Roadmap Strategic funding priorities Science-Industry � Research-economy linkages Integrated HR development policies within a knowledge economy framework

10. Recommendations: Strategy Absence of a coherent strategic framework, lack of �research tradition� in public and political mindset, shortage of basic infrastructures for research & research support services, and lack of focus/prioritisation. Implementation of a Strategic Plan with clear strategic vision of a Cyprus �knowledge economy� Develop/promote a broader R&I concept = integrated policy framework of benefit to large number of stakeholders Education, research and innovation to be firmly embedded within strategic policy thinking Needs more focused approach (e.g. societal/�Grand� challenges but sensitive to local/regional needs) Balance between clear strategic priorities to orientate research themes, with appropriate support for basic or core research

11. Recommendations: People Historic outflow of researchers & HRST, nascent HE sector, more lifelong learning needed, lack of researchers in private R&D, ambition to increase (regional) attractiveness of Cyprus� Promote entrepreneurialism and skills for new market demands Maintain PhD training as a priority for research-based universities: Absorption of PhD graduates into industry and academia Encourage international exchanges and industrial placements Create high level strategic body to manage HE sector�s governance, quality and critical mass aspects Encourage curiosity-driven curricula in 1o and 2o education (training of teachers, parental awareness, public engagement) Short, medium and long-term HR development in R&I to form central pillar of Strategic Plan and Roadmap: Close liaison & cooperation between universities (public and private), Ministries, private sector and HRDA

12. Recommendations: Finance Growth in funding support needs capacity to deliver and to absorb, no clear dedicated research funding stream/agency for industry, risk from economic recession (cut-backs)� Financial and human resources are finite: components of the �policy mix� must be appropriate and balanced: support RTD needed by industry promoting Cyprus as supra-regional hub for education and learning (quality of education) supporting universities to promote highly advanced research Stability of funding framework conditions � and need for selectivity and prioritisation to maintain continuity More consideration to competitive bottom-up funding for basic and applied research Identify clear �champion� for business innovation support within government and establish clear avenues towards readily identifiable forms of innovation support

13. Recommendations: Linkages Low levels of R&D interaction and knowledge exchange between public and private sectors, opportunity for policy tools for promoting dialogue, start-ups and spin-offs� Develop cooperative research organisations to bridge gap between science and the economy Clustering policies in priority fields for Cypriot economy Pilot schemes for stimulating & supporting science-industry dialogue Better recognition and support for IP system Facilitation of greater dialogue and collaboration between public and private universities define areas of respective strengths

14. Recommendations: Governance Good policy intentions, but lack of progress, need for focused stakeholder engagement� Rapid establishment of the National Research Council and the Cyprus Scientific Council Foresight exercise: dialogue and priority setting Stock-taking exercise of local and regional framework for prioritisation and strategic planning Identification of bureaucratic obstacles Policy learning and capacity building

15. R&D and Innovation Performance

16. R&D Expenditures