Towards a knowledge-based economy: does the Cyprus R&D capability meet the challenge?

This paper highlights the need for Cyprus, a small peripheral European country, to become a knowledge-based economy, as a way to increase living standards in the long run. Key factors for a successful transition to the knowledge economy are improved education, appropriate funding for research and development (R&D) in basic and applied sciences, and, in particular, appropriate mechanisms of technology transfer, from the laboratories to the companies. The paper reviews the existing R&D infrastructure in Cyprus, with special emphasis on its links with industry. Overall, the evidence indicates that Cyprus is lagging behind in research-industry collaboration and is also suffering from a severe atrophy of its own research infrastructure. Copyright , Beech Tree Publishing.