Address by the Minister

Summary of the Presentation of the Minister of Commerce, Industry and Tourism Mr Nicos A. Rolandis at the Official Dinner of the Cyprus-Israel Business Association at the Hilton Hotel in Nicosia (Wednesday 12 December 2001, 8:30 pm)

With a decision of the Council of Ministers, based on a proposal of the Minister of Commerce Industry and Tourism, the Government of Cyprus has adopted the New Industrial Policy in June 1999, in its effort to overcome some problems of the traditional industrial sector and to accelerate its restructuring and development.

The New Industrial Policy, which consists of 12 Chapters, attempts to achieve the following broad goals:

to offer assistance to existing and attract and develop new high tech industries
to assist the restructuring of the traditional manufacturing industry
to attract capital intensive foreign investment
to improve productivity

The first two Chapters refer to the first goal of the New Industrial Policy and they aim to the creation of new high technology industrial units through the setting up and operation of business incubators, and the enhancement of the applied research ability of the country.

A technology incubating program is an innovative system designed to assist entrepreneurs and inventors in the development of new technology-based firms. It seeks to effectively link talent, technology, capital and know-how to leverage entrepreneurial talent in order to accelerate the development of new companies, and thus speed the commercialisation of technology. It is a facility that aids the early-stage growth of technology-based companies by providing shared facilities such as space and office services, and business consulting assistance.

The Government of Cyprus will provide part financing to the incubees up to the sum of CY£120.000 for projects aiming at the development of new high technology products, for a period of up to two years.

Initially, four business incubators will be selected, based on predefined quality and economic criteria. The Government of Cyprus will provide to the selected incubators a grant of up to CY£57.000, over a three-year period, to cover running expenses and a grant of up to 15% on the initial investment for the purchase of land, building and equipment and for the acquisition of know-how. The main income of the Incubators will come from the fees paid by the incubees for the use of the premises and for the services offered.

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