Government Deputy President, Kostis Hatzidakis, presented five strategic government initiatives aimed at addressing competitiveness and innovation challenges identified in the Leta and Draghi reports. The presentation took place at an event in Athens, organized by the Bank of Greece and the European Investment Bank Group.
However, as Mr. Hatzidakis noted, national efforts alone are insufficient, not only for Greece but for any European state. “Coordinated actions and initiatives are needed at the EU level to deepen the Single Market, boost innovation capacity and competitiveness, and reduce strategic dependencies,” he emphasized.
The government Deputy President mentioned that the two reports announced last year converge on three concerns regarding Europe’s position on innovation today and its connection to competitiveness. These are:
-Europe’s lag behind the US and China in innovation and productive utilization of research. This is why the creation of a Research and Innovation Union is proposed, with a unified strategy so that innovation functions as a real lever for growth and competitiveness.
-The lack of large-scale, coordinated financing for balanced innovation development in the EU. “This is why we need to promote the capital markets union – so that European innovative companies don’t need to relocate their headquarters to the US because they struggle to find financing – and complete the Banking Union.”
-The need to redesign the regulatory environment so that companies can grow and innovate.
Government’s five priorities in detail
As Mr. Hatzidakis stated, facing these challenges, the government has already promoted a series of policies supporting entrepreneurship and innovation and continues with five priorities:
1.The new framework for business innovation and corporate transformations. “One of the most modern and advanced incentive frameworks in the EU for strengthening research and innovation in businesses, and for corporate transformations. With incentives such as super-deductions up to 315% for scientific and technological research expenses, reduced taxation for companies that commercially exploit patents, and tax incentives for business angels investing in startups. Incentives that address the problems of ‘small scale’ and high risk of corporate R&D activities. These are not theories and promises, but enacted law that has been in effect for six months,” he noted.
2.A modern financing ecosystem for entrepreneurship and innovation. With strengthened competition in the banking system and upgraded operation of the Stock Exchange and Capital Market. With further development of the private equity and business angels ecosystem. With the shift of ESPA and the Recovery Fund toward innovation, with the new Development Law and its tools, combined with the Hellenic Development Bank and the newly established Greek Investment Fund for Infrastructure and Innovation that will soon start operating within the Superfund framework. Mr. Hatzidakis also reminded of the recently passed Capital Market law and the ongoing Euronext offer for the Greek Stock Exchange.
3.Connecting research and innovation with entrepreneurship in critical sectors. “Incentives for supporting the utilization of research results for developing innovative products and services, specialized financing tools, and flagship interventions such as the operation of the first non-state universities in our country, create significant knowledge and innovation potential. In this direction, we want to further develop knowledge-intensive sectors, utilizing our high-quality scientific potential. Such as artificial intelligence, through the development of a complete regulatory framework for its utilization at the business level, with parallel protection of rights and freedoms,” the government Deputy President stated.
4.Improving the business environment to encourage investments, continuing efforts that began in 2019. “We are proceeding with the completion of the National Cadastre by the end of the year, the preparation of Local and Special Urban Planning Schemes. The acceleration of justice delivery, which is already becoming visible. And the coordinated effort for further reduction of administrative burden for businesses and investments by 25%. And simultaneously, with the modernization of tax and labor legislation, and the reduction of taxes and contributions.”
5.Strengthening exports and outward orientation of Greek businesses. “With a comprehensive export strategy that will be presented soon. With implementation of targeted financing tools for export companies and companies participating in international trade fairs. With actions to simplify and digitize customs procedures, as well as exploring the possibility of tax incentives targeted at sectors and products with high demand in international markets.”
“These five priority areas and the Government’s planning respond to the three common concerns of the Draghi and Leta reports,” Mr. Hatzidakis emphasized.
Referring specifically to the European Investment Bank’s role, he welcomed the TechEU initiative it is designing to provide financing to innovative companies and high-risk investment projects in critical sectors. “An initiative from which we expect a lot,” he noted. He also highlighted the EIB’s longstanding support for Greece, which has allocated 14.5 billion euros to our country over the last five years, mainly for financing innovative SMEs, energy infrastructure, and civil protection projects.
“We know,” the government Deputy President concluded, “that innovation and competitiveness are fundamental prerequisites for a strong economy. The Government is investing in practice in these two axes, focusing on a dynamic private sector that innovates and opens internationally.”
“We know that shipping and tourism are strategic advantages for Greece, but we deeply believe that innovation, new technologies, talented young engineers, and the startup community in Greece can constitute a significant strategic advantage, and that’s why we are undertaking efforts, both at the institutional level and at the financing level, to be not only present but with advanced policies because we believe that by supporting innovation, we support the new generation, we support the economy, we support the country’s prospects.”
