Page 17 - COMPASS - COMPETITIVENESS REPORT 2022 - COUNCIL OF COMPETITIVENESS IN GREECE

“COMPASS” REPORT 2022 – COUNCIL ON COMPETITIVENESS OF GREECE 15

innovation and competitiveness. Thus, complementary The legislative
or alternative hybrid financing tools must be designed framework
and adopted that will combine loans, guarantees, co-fi-
nancing, grants, and investments, in order to effectively
The legislative framework is a crucial driving force in accel-
address the challenges of modern companies.
erating innovation. The main amendments aim at improving
• A new generation of entrepreneurs is emerging, no the investment environment by streamlining licensing and
longer hesitant to try their hand in the market, yet the implementation procedures related to private and strategic
concept of entrepreneurship is sorely lacking in schools, investments and by establishing a framework for spinoffs
educational institutions and the Greek reality in general. that work to commercialise research results, aiming to ef-
This calls for a cultural shift towards an economy more fectively bridge the gap between the research and business
open to entrepreneurship and risk-taking, a change that communities and to ensure that the outcomes of research
must be embraced as a vital driving force to increase reach end consumers/beneficiaries. It is also important to
the number of successful entrepreneurs in the mid- and recognise the need for a radical change of mindset, vis-à-vis
long-term. the essence of innovation, that will pave the way for compa-
nies to modernise and optimise their business models and
• Public procurement contracts could serve as a catalyst boost competitiveness. Recent amendments include:
for research and innovation that can subsequently be
successfully commercialised, with positive results for the Incentives for strategic investments of more than €20 million
economy as a whole. (Law 4864/2021) in strategic areas of economic activity
(agrifood, research and innovation, biotechnology, robotics,
artificial intelligence, medical tourism, waste management,
etc.), with investment incentives including special location
regimes, tax benefits, fast-track licensing and expendi-
ture subsidies. It should be noted that incentives must be
sector-independent, as it is crucial to recognise and bolster
each region’s local comparative advantage and, in doing so,
boost the competitiveness of the country as a whole. Thus,
the new Development Law (Law 4887/2022) sets out a range
of incentives for qualifying smaller investment projects;
these include direct subsidies, tax exemption, leasing subsi-
dies, and wage subsidies for jobs created. Furthermore, the
profits of a company resulting from an internationally rec-
ognised patent in its name are exempt from income tax for
up to three consecutive fiscal years, starting from the year
in which profit was first generated (Joint Ministerial Decision
79628/ΕΞ/2022). Incentives are also provided to improve the
institutional framework for the transfer of know-how and the
utilisation of technology.

In addition to the foregoing, and with specific regard
to reinforcing research, there is now a clear institutional