New State Funding Mechanism Links Research Support To Results

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The Cabinet's decision ties state research funding to measurable performance for the first time, starting in 2027.

Cyprus's Council of Ministers on Wednesday approved a new funding mechanism for publicly funded research organisations, linking institutional state support to performance and measurable results for the first time. Deputy Minister of Research, Innovation and Digital Policy Nikodimos Damianou said the framework will take effect from early 2027, beginning with the Centres of Excellence co-funded through the EU's Teaming for Excellence programme under Horizon Europe.

A new performance-based framework

Mr Damianou described the mechanism as a comprehensive and rational funding framework, intended to ensure that the research infrastructure, expertise and capabilities developed in recent years are not only preserved but strengthened. The goal, he said, is to evolve existing structures into sustainable, long-term entities through an institutionalised funding framework.

First phase targets EU-backed centres

In its initial phase, the mechanism will apply to the Centres of Excellence that received joint funding from state and European resources through the Teaming for Excellence scheme, part of the EU's Horizon Europe programme.

Eighteen indicators across six thematic areas

Under the new system, research centres will be funded on the basis of specific performance indicators and agreed targets. A total of 18 indicators will be assessed, grouped into six thematic areas: the research environment, the international dimensionscientific excellenceresearch performanceknowledge transfer, and socioeconomic impact.

Annual review, three-year funding cycles

Performance will be evaluated annually, while funding will be renewed every three years.

The framework also includes fiscal responsibility provisions, among them a maximum funding cap, an assessment of each centre's actual financial needs, and consideration of any other institutional state funding already received.

Ministerial statement

Mr Damianou said the decision lays the foundations for a new model of institutional support for research and innovation, aimed at strengthening scientific excellence and competitiveness, while ensuring the transparent and effective use of public resources for the benefit of citizens and the Cypriot economy.