Finance Minister Harris Georgiades said, "The phase the Cypriot economy is in today, having faced the most pressing consequences of the [financial] crisis, what matters is the expansion of the productive base and today’s decisions serve this purpose."
Former health minister Professor Philippos Patsalis will chair the council.
The new National Research and Innovation Council will define the nation's strategy.
The cabinet appointed Kyriakos Kokkinos, a vice president of the Research Promotion Foundation, as lead scientist for the project.
The Cyprus Mail also reported that the Council of Ministers will finance all research proposals from Cyprus selected by the EU within the framework of Horizon 2020 projects, the EU's biggest research and innovation program.
Georgiades said two Cypriot proposals have been approved for Horizon 2020. He added, "Another 10 Cypriot proposals are included in the 50 candidate European proposals as a whole, and we are optimistic that others will be selected."
He explained, "We consider the participation of Cypriot proposals as one of the most important forms of promoting research and innovation in our country."