Innovation & public funding in Greece: Are we getting the returns we expect?

Greece's emphasis on innovation has intensified significantly since the 2008 economic crisis, with a series of financial and legislative interventions aimed at encouraging research and development (R&D). EU and public funding has flowed into universities, research centers, and businesses, with tax incentives, grants, and investment legislation designed to stimulate private-sector engagement. However, despite the substantial investments, Greece remains behind the EU average in R&D spending and patent production, raising concerns about the effectiveness and priorities of these efforts.

This is not simply a financial issue. While Greece has increased R&D expenditure, its impact on technological advancement and productivity remains limited. The number of patents filed annually does not reflect the billions invested, and the country continues to struggle with low competitiveness and a widening trade deficit. This suggests a deeper structural issue—one not just related to funding but also to strategic vision, oversight, and the alignment between government support and tangible innovation outcomes.

One fundamental problem is the imbalance between public support and private profit. The government provides substantial subsidies, yet the profits from successful research largely remain in private hands. This model - where risks are socialized through public funding while gains are privatized - needs to be reevaluated. If public money funds research, shouldn't there be a mechanism ensuring that both the government and taxpayers share in the rewards?

Beyond funding, another critical challenge is fragmentation. Responsibility for research initiatives is spread across multiple ministries and agencies, leading to inefficiencies and a lack of coordinated policy. Additionally, Greece struggles to attract international research funding, ranking low in EU programs such as Horizon Europe.

A more structured and accountable national innovation policy is essential. This means setting clearer research priorities, providing targeted support for strategically important fields, enforcing stricter oversight of public funding, and establishing a framework for technology transfer that benefits both the economy and society. Without a shift towards a results-driven approach, Greece risks continuing to invest heavily in R&D without reaping the benefits needed for a modern, competitive economy.

You can access the full article (in Greek) here.