SPEECH BY THE MINISTER

Address by the Permanent Secretary of the Ministry of Commerce, Industry and
Tourism Mr. Andreas Petrondas at the "Infornmation Communication Technology
Conference & Exhibition" organised by IMH Creative Solutions Consulting in
association with the CITEA. (Friday 5 May, 2006)

Subject: "Research and Development in Innovation in the IT Sector in Cyprus"

Distinguished Guests
Ladies and Gentlemen

It is with great pleasure that I address today this first ''Information Communication Technology'' Conference and Exhibition, and with this opportunity, I would like to congratulate both IMH Ltd. and the Cyprus Information Technology Enterprises Association (CITEA) for their initiative to organise this event. The importance of Information Technology and the speed that the sector evolves, make events like this, vital for the up-growth and expansion of the IT Industry in Cyprus.

The rapid development of the IT sector and the innovation capabilities and ease of access and use that it has brought to our fingertips, whether used in business, education, all sectors of science, security or entertainment, has made it the most rapidly expanding, versatile and profitable sector of any economy.

Cyprus is compelled to pursue the development of the IT sector, and, with its highly esteemed Scientists, the well educated labour force, the excellent telecommunications network, the sophisticated banking system, the modern transport and energy infrastructure and the highly developed socio-economic infrastructure, this task becomes realistic. Furthermore, the geographic location of Cyprus, the excellent political and economic relations with our neighbours and the favourable economic and business environment gives Cyprus if not a clear advantage against other countries, at least the incentives to pursue the development of its IT sector.

The task for achieving this goal falls, equally, both to the private and the public sectors. The private sector must take the primary responsibility for developing new technologies and applications and channel them in the market. The role of the public sector is to facilitate the environment in which businesses will be encouraged to develop new technologies for the market which will improve the lives of the citizens.

The European Union, recognising the importance of research, has placed as a minimum target the investment of 3% of the Gross Domestic Product in research activities until the year 2010. To meet this European objective, the Government of Cyprus has set as a goal for the next few years, the spending of 1% of its GDP in research. Our vision is the development of such initiatives that will make Cyprus a Regional Centre of Excellence for Research and Innovation. To achieve this objective, the Government strongly encourages work in the area of research both within and outside businesses.

The Government of Cyprus, in its mission to create the necessary infrastructure for research and to attract researchers from big Research Institutes or Research Units of multinational enterprises and reputable Universities, has taken or sponsors various initiatives which are focused in the following areas:

1.	The establishment of a Science Technology Park in Cyprus with the cooperation of the French Riviera Chamber of Commerce and Industry and the authorities of the Sophia Antipolis Science Park. This Technology Park will operate in the same spirit as all the other similar Parks in Europe and the rest of the world and it will host Research Centres and High Tech Enterprises.
2.	The Programme for the Creation of New Enterprises of High Technology and Innovation Through the Institution of Business Incubators. Applicants at this program can, with the help of dedicated professionals and the Ministry of Commerce, Industry and Tourism, create their own enterprise and develop their innovative idea into a high tech product with the active financial backing of the Government. Up to now, the program has accepted more than 30 applications for the development of high tech products from which, 19 have been approved by the Competent Evaluation Committee and have started their work. It should be noted that 12 of them are related to the IT sector and we are proud to announce that one of them has completed its research, formed its end product and has signed an agreement with a very big client for its marketing.
3.	The Program for the Creation of Business Incubators. Currently there are four fully operational Business Incubators in Cyprus and the Government is planning to implement a new scheme for the creation of additional Business Incubators with a system of incubator accreditation.
4.	The establishment of the Cyprus International Institute for the Environment and Public Health in association with the Harvard School of Public Health. This Institute's main goal is to conduct research in the fields of the Environment and Health.
5.	In cooperation with other Ministries and services and the Cyprus Development Bank, the establishment of the Cyprus Research and Educational Foundation (Institute of Cyprus) which will be a research and educational centre of excellence.
6.	The Cyprus Entrepreneurship Competition which was initiated by the University of Cyprus.
7.	The Award for innovative SME,s which was initiated by the Cyprus Employers and Industrialists Federation.
8.	The introduction of the Scheme for the Encouragement, Strengthening and Reinforcement of Youth Entrepreneurship.
9.	The introduction of the Scheme for the Encouragement, Strengthening and Reinforcement of Women`s Entrepreneurship.

In addition to the above, the Competent Ministerial Committee is in the process of evaluating the existing system of promotion of research, technological development and innovation in Cyprus as well as the relevant administrative structures and management mechanisms in an effort to determine any weaknesses, deficiencies or overlapping between the functions of the public bodies, the broader public sector and the private sector.

Furthermore, the Ministry of Commerce, Industry and Tourism prepared a study for a National Strategic Plan which is now at the stage of implementation and whose objectives are the formation of a legal framework and a national policy for an e-Commerce strategy. The superb strategic position of Cyprus together with the above mentioned measures will make the island a perfect hub for electronic trade and for regional distribution location for multinationals in doing business on-line with partners, suppliers and customers worldwide.

Our commitment in the task of promoting and enhancing Research and Development in Cyprus is also reflected by the numerous Memoranda of Understanding signed between the Ministry of Commerce, Industry and Tourism and education authorities and research institutes abroad. The Ministry is presently in the process of signing a Strategic Partnership Agreement with Microsoft which caters for the establishment of a Microsoft Innovation Centre and a Microsoft IT Academy in Cyprus.

The efforts of the Government for the promotion and encouragement of research and development in Cyprus will not end here. Our target is to reform the industry of Cyprus to a fully high tech, research and development oriented industry that, we are confident, will rank Cyprus amongst the elite of technology producing countries. The Government can only set the infrastructure and offer the incentives. The determination, efforts and means for achieving this task, all fall on the shoulders of the privateers. The highly esteemed and spirited attendees of this event allow me to confidently conclude that we are in the right way and our plans for an R&D oriented Industry in Cyprus will be successfully accomplished.

In concluding, I would like to congratulate the organisers of this event and wish you all, every success in your deliberations. I will be waiting with great interest the conclusions of the conference.