The parliament has approved amendments to the legal framework governing spin-off companies from public universities, after the law passed in 2018 failed to result in a single such company being established.
The University of Cyprus welcomed the decision. Tatiana-Eleni Synodinou, Vice-Rector for Academic Affairs, said the previous framework had actively discouraged commercialisation of academic research. “The legal framework passed in 2018 was not supportive of creating spin-off companies, with the result that not a single spin-off has been established to date from public universities,” she told Phileleftheros. “The outdated restrictions it included, particularly regarding the participation of academics, discouraged the commercial exploitation of scientific expertise and inventions.”
The key change under the new law removes the 24% cap on the share of capital that permanent academic staff could hold in spin-offs established by the University of Cyprus. Under the amendments, the stake held by permanent academic staff will be negotiable with the university, while the combined total for both parties remains at 49%. Non-permanent staff — including researchers, inventors and co-inventors of intellectual property commercialised by the company — can participate in the remaining share capital.
Asked about the main changes, Synodinou said: “The main point of change is that the restriction on the percentage of participation in the share capital of spin-offs established by the University of Cyprus by members of academic staff and permanent members of the Special Educational Personnel is lifted — which had been set at 24%.”
On conflict of interest safeguards, she said the new framework sets clear approval procedures and restrictions. “It is made clear that permanent members of the university’s academic staff can participate in these companies without taking on any executive role or remuneration, and following the securing of relevant approval that ensures their participation is not incompatible with the function of academic staff and does not run counter to the interests and mission of the university.”
She added that academic staff participation in spin-offs is standard practice across Europe. “The participation of researchers is established practice in all European countries and is essential for the success of these companies, as the researchers and their teams have developed the intellectual property being commercialised by the company and know very well the particularities of each sector.”
On the benefits for the University of Cyprus, Synodinou said spin-offs would allow the university to fulfil its public mission, strengthen its role as an innovation actor and attract new sources of external funding, while also broadening opportunities for researchers and helping retain highly qualified staff in Cyprus’s research ecosystem.
The new framework was approved by the Council of Ministers on February 19, 2025, following extensive consultation with all interested parties and an assessment by a knowledge transfer expert from the United Kingdom. The government said the amendments open new avenues for converting research into marketable products and creating specialised jobs.
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