The ramifications of the COVID-19 pandemic are expected to have an immense and direct impact on the Cyprus economy. The measures taken by the Government to prevent the sudden and uncontrolled spread of the virus have affected almost all businesses, some of which have suspended their operations either due to the decrees issued by the Government, or due to the dramatic decrease of their turnover, while others have adapted their operations so that their employees can work remotely from home, with flexible schedules etc. Despite the negative impact observed and possible future outcomes of the pandemic, the precarious nature of the coronavirus situation poses an opportunity for the business world that is being called to respond to the issues arising, by providing new and innovative solutions.
Increased demand of remote work solutions from employers, as well as a shift in consumer behavior with a surge in the use of e-commerce and delivery services, create an edge for companies that operate in the wider technology field and more specifically in the areas of telecommunications, online services, e-government, artificial intelligence, robotics, telehealth, biotechnology, e-learning, blockchain, and others.
It is expected that many startups will become redundant while new ones will emerge. However, the businesses that will be able to evolve and operate with innovative ways and flexibility, providing new and competitive solutions, will be able to survive. It is worth mentioning that in early April, various teams from Cyprus which are active in the innovation and digital development area, have suggested a number of solutions to help with the fight against COVID-19 in the context of Hack the Crisis – Cyprus initiative. In the same context – to help combat the pandemic, the Cyprus Ministry of Research, Innovation, and Digital Policy released the platform Digital Solidarity, an online index and repository of digital solutions offered in Cyprus.
At the same time, the Cyprus National Board for Research and Innovation announced a series of stimulating measures to help deal with the spread of COVID-19 and its consequences. These include financial aid programs up to €2.1m which are co-funded by national and European resources.
The European Commission began collecting ideas for artificial intelligence & robotics solutions through the AI-ROBOTICS vs COVID-19 initiative, while at the same time offering funding up to €5m for healthcare robotic solutions that address COVID-19 through their DIH-HERO platform.
The European Investment Fund, together with the European Commission released €8 billion in available financing to provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic. SMEs can apply directly to their local banks and credit institutions participating in the scheme, which are listed at www.access2finance.eu.
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