The integration of digital technology into business activities is a significant challenge for Cyprus, despite some positive indicators. While the percentage of SMEs with at least a basic level of digital intensity is above the EU average, and Cyprus performs well in cloud technology adoption, many companies still do not fully utilize state-of-the-art digital technologies. To address this, Cyprus is focusing on introducing digital technologies in business activities to enhance efficiency in systems, products, and services.
Through the main Recovery and Resilience Plan (RRP) and under the scheme for the Digital Upgrade of Enterprises, this scheme, included in the Operational Programme 2014-2020 “Competitiveness & Sustainable Development” and co-funded by the ERDF and national funds, aims to boost the integration of digital technology in SMEs within areas controlled by the Cyprus Government. By the end of 2022, 371 enterprises had been approved for the scheme, with 311 signing the Public Financing Agreement and proceeding with their investment proposals. Out of these, 307 proposals have been completed and received subsidies. The scheme has been extended and financed under the ESIF for 2021-2027. A new scheme was announced in November 2022 with a budget of €10 million (total budget of €20 million). A total of 365 applications were submitted for the available budget and are currently under evaluation.