Social Innovation Country Report:
Cyprus
In Cyprus, there is not an official legal definition or framework for “social innovation” in the same way it may be formally defined or legislated in other countries. Social innovation is still an evolving concept in the country. However, it is recognized as an important area within the broader scope of the social economy, which includes social enterprises, cooperative societies, and other forms of social initiatives that aim to address societal challenges.
Legal and Policy Frameworks

Cyprus does not yet have a formal legal framework or national strategy for social innovation. However, discussions are ongoing to establish policies related to the social economy.

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Current stage of implementation:
Ecosystem Actors
Key Actors in the Ecosystem

The leading actors driving social innovation in Cyprus include government ministries, social enterprises, NGOs, philanthropic institutions, academia, and other ecosystem builders. The top three most influential actors are:

  • Government entity (ministries/agencies)
  • Social entreprises & social innovateurs (Impact hubs)
  • NGOs

Examples: Center for Social Innovation (CSI), SYNTHESIS CENTER FOR RESEARCH AND INNOVATION

Education and Capacity Building

Formal and informal education programs that support social innovation exist in the following forms in Cyprus:

  • Private sector or NGO-led programs:“ Non-governmental organizations, incubators, or private sector actors actively run training, mentorship, or acceleration programs for social innovation.
Coordinating Bodies

A centralized body responsible for coordinating social innovation efforts across sectors exists in Cyprus.

Ecosystem Communication
The level of communication and coordination among key actors in Cyprus’s social innovation ecosystem is currently Moderate: “some collaboration, but existing gaps in coordination."
Support Mechanisms for Policy and Finance
Policy Incentives and Support Mechanisms

To support social innovation, Cyprus has implemented the following incentives and mechanisms:

  • Incentives for individuals to fund social innovation or social businesses,
  • Government-backed funding programs (e.g., grants, subsidies, social impact funds)

Further information:

  • A tax relief on natural persons, who invest in social enterprises, up to 50% of their taxable income in the year of the investment and up to the total amount of €150.000 for a total period of five years. (The bill has been drafted by the Ministry of Finance and sent to the Legal Service of the Republic for a legal technical review).
  • A subsidy scheme for social enterprises to cover initial expenses (e.g. set up and operative expenses). The scheme provides €10.000 for each registered social enterprise, with a total amount of €300.000 per year for the period of 2025 – 2027 and with a total budget of €900.000. The scheme is expected to be approved by the Council of Ministers soon.
Financing Mechanisms
Impact
Flagship Programs and Achievements

Notable achievements and flagship programs in social innovation in Cyprus include:

  1. The National Competence Center for Social Innovation - took place within the framework of the Project FUSE (https://www.fuseproject.eu).
  2. Youth Innovation Factory (YIF) - Launched in August 2023 by UNDP Cyprus and SocialTech Lab (https://socialtechlab.org). YIF is a venture-building program supporting youth in developing tech-based innovations, offering seed funding of 25.000 euro for successful projects.(YIF - https://www.undp.org/cyprus/youthinnovationfactory).
  3. Youth Cities - An innovative and highly participatory initiative that focuses on empowering and creatively engaging young people to address challenges in their local community, managed by the Center of Social innovation (https://csicy.com) and RESET ( https://resetcy.com) and funded by the National Betting Authority and the Cyprus Youth Organization (https://onek.org.cy/en).
International Collaborations

Cyprus is involved in international collaborations on social innovation through the following initiatives:

Cyprus public and private sectors collaborate in the field of social economy and social innovation at international level with the following organizations:

  1. Organisation for Economic Co-operation and Development (OECD)
  2. EUCLID Network (https://euclidnetwork.eu)
Tech for Good Innovations
Impact Measurement Frameworks

Cyprus does not have a formal framework or methodology for measuring social innovation impact.

Economic Contribution of Social Innovation

Social innovation contributes to Cyprus’s economy through:

Q17_2_1: 40 Q17_2_2: 324 Q17_2_3: 200364058 Q17_2_4: www.cssda.gov.cy

Reports on Social Impact

There are no Reports and studies that assess the social impact of innovation in Cyprus.

Policy Momentum

Momentum for social innovation as a public policy issue in Cyprus is currently rated as:

Some Momentum: There is growing awareness and initial efforts in public policy, but implementation remains limited or fragmented.

Barriers to Growth

The following barriers are currently hindering the growth of social innovation in Cyprus:

  • Lack of sustainable funding model,
  • Lack of awareness and understanding of social innovation,
  • Weak collaboration between public, private, and civil society sectors,
  • Difficulty in measuring and demonstrating impact
Collaborative Ideas

Proposals from Cyprus for potential collaborative initiatives with other GCSI members include:
We are optimistic that collaborative ideas with member countries of GCSI could be emerged through the development process of social economy and social entrepreneurship in Cyprus.

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