The vision of making Cyprus a true tech island is shared by the country's technological ecosystem, which has succeeded in bringing together companies, people and organisations.
This is also a vision that in recent years has begun to take substantial form through the steady growth of the sector and the expansion of the country's technological community, a fact highlighted by TechIsland's Chairman, Valentinos Polykarpou.
Polykarpou recently accepted the Editor's Choice Award on TechIsland's behalf at IMH's 18th IN Business Awards and soon after spoke to IN Business magazine.
Within a few years, TechIsland has managed to evolve into one of the key figures in the Cyprus tech ecosystem. What were the defining steps in this journey?
The most defining step was that TechIsland started not as an isolated initiative, but as a common voice of the ecosystem. From the beginning, our goal was to unite companies, people and organisations around the common vision of making Cyprus a true tech island.
An important role was played by the creation of a strong community of members, which represents a broad and dynamic segment of technological activity in the country with more than 400 members, 52% Cypriot companies and 48% foreign investment companies with a presence or headquarters in Cyprus: startups, SMEs and scaleups, multinationals, venture capital funds and accelerators with activity in sectors such as software development, fintech, artificial intelligence, cybersecurity, video gaming, adtech, blockchain, healthtech and VR/AR.
And the second crucial step?
The second decisive step was the systematic cooperation with the state and institutions. TechIsland did not limit itself to highlighting problems, but invested in proposals, dialogue and practical solutions. Finally, I consider it very important that from an early stage we linked the development of the technology sector to a broader national narrative, that technology is not a closed sector, but a lever for development for the entire Cypriot economy and society.
How would you describe Cyprus' current position on the international technological map?
Cyprus has managed in recent years to confidently enter the international technology map. We are no longer just an attractive destination for companies to set up shop. We are a growing ecosystem with real economic weight, extroversion and growing international recognition. The data clearly confirms this. According to a study by KPMG in Cyprus, the broader technology sector has a direct contribution of €5.5 billion to the gross value added (GVA) of the Cypriot economy, which corresponds to approximately 17% of the total. If the indirect and induced effects are added, the total footprint reaches €11.3 billion in terms of GVA. In terms of gross national product (GDP), the direct contribution amounts to close to €6 billion, while the total impact approaches €12 billion.
What, in your opinion, are the competitive advantages of our country?
First of all, let me say that our competitive advantages are significant. And we are talking about the strategic geographical location, the business environment, the flexibility of a small country, the quality of life, the presence of international companies and the ability to adapt quickly. At the same time, there are areas in which we need to improve, such as innovation, the connection of research and the market, the development of local talent, infrastructure and international connectivity.
What role can technology play in the overall development of the Cypriot economy in the coming years?
The role of technology in the coming years can be decisive. It can contribute to the diversification of the Cypriot economy, the creation of quality jobs, the increase in productivity, the attraction of investments and the retention of young people in Cyprus. Most importantly, technology can act as a horizontal catalyst for growth, positively influencing other sectors of the economy, such as financial services, education, health, tourism and public administration.
TechIsland has repeatedly highlighted the importance of collaboration between the private and public sectors. How important are these synergies to achieving real progress?
No technological ecosystem can be developed effectively by the private sector alone or by the state alone. It requires coordination, trust, and common direction.
The private sector has first-hand knowledge of market needs, international trends and the challenges companies face in practice. The state, on the other hand, has the role of shaping the institutional framework, policies and infrastructure that allow the ecosystem to develop.
When these two sides work together in essence, progress can be rapid and effective, always to the benefit of society. Collaboration does not mean that everyone always agrees on everything. It does mean, however, that there is a common goal and a shared understanding that technology can function as a national development priority.
Talent attraction is one of the biggest issues internationally. How can Cyprus find and retain high-quality human resources in the technology sector?
Attracting and retaining talent is perhaps one of the most critical challenges for any technology ecosystem. For Cyprus, the challenge is twofold. On the one hand, to bring in international talent and on the other hand, to create the conditions so that Cypriot youth can build a competitive career here. To achieve this, a comprehensive framework is needed. This includes fast and predictable procedures for work permits and relocation, better connectivity, access to quality education, housing, infrastructure and an environment that facilitates not only the employee, but also their family.
At the same time, we need to invest much more systematically in local talent. Connecting education and the job market, strengthening digital skills, STEM programs, and exposing students to technology from a young age are critical elements.
What would you say is the next big step for TechIsland and the Cypriot tech ecosystem in the coming years?
It is important to continue improving the mobility framework for skilled professionals, such as better implementation of the EU Blue Card and the country's accession to the Schengen zone. Because we must remember that in the end, talent chooses countries where it sees potential. If Cyprus offers opportunities, quality of life, stability and a dynamic ecosystem, it can compete with much larger markets.
The dynamic numbers in ICT
What is the footprint of the ICT sector in the Cyprus labor market?
The impact of technology on employment is particularly significant.
In 2025, the broader technology sector directly employed 48,000 workers, while with indirect jobs, this number reached 80,000. These are high-value-added jobs, which strengthen not only the sector, but also the broader economy.
The dynamics of our country are also visible in comparison with Europe. The ICT sector accounts for 12.5% of the economy, ranking Cyprus third in Europe, significantly above the European average of 5.6%. At the same time, during the period 2016-2025, Cyprus recorded the highest growth in Europe in the gross added value of the ICT sector, with an increase of 435%.
The Editor's Choice Award is a special and honourable distinction. What does this recognition from an institution like the IN Business Awards mean to TechIsland?
This distinction is particularly honourable, not only because it comes from an institution with prestige in the business world of Cyprus, but mainly because it recognizes a collective effort that goes beyond the boundaries of an organisation.
TechIsland was created with the clear vision to contribute substantially to Cyprus evolving into an internationally recognizable hub of technology, entrepreneurship and innovation. The Editor's Choice Award is for us confirmation that this effort now has a visible footprint in the economy, society, the business community and the new generation. At the same time, we see it as a responsibility. This recognition does not belong only to TechIsland, but to the entire ecosystem, namely to companies, professionals, institutions, the state and all those who work consistently to create the conditions that will allow Cyprus to continue to develop steadily.
This interview first appeared, in Greek, in the June edition of IN Business magazine. Click here to view it.
