Bank of Greece Governor Yannis Stournaras emphasized the importance of innovation as a central axis for enhancing competitiveness and maintaining the living standards of Greek society. He also mentioned the potential acquisition of the Athens Stock Exchange by Euronext, highlighting that it could lead to a deepening of the market and increase Greek businesses' access to international capital.
Speaking at the conference on Innovation and Competitiveness organized by the Bank of Greece and the European Investment Bank, Mr. Stournaras stressed that increasing productivity is the only path to boosting incomes and supporting public revenues and benefits. He reiterated the well-known saying by Paul Krugman, "Productivity isn’t everything, but in the long run, it is almost everything."
According to the Governor of the Bank of Greece, innovation, whether through the development of new products or through the improvement of processes and organizational structures, is a key driver for increasing overall productivity.
He pointed out that the Greek economy continues to lag in productivity compared to the European average – standing at just 56.2% on average – a fact attributed to the structure of the economy and the low technological added value of many sectors. "Even before the crisis, productivity was low. Innovation is necessary not only for growth but also for maintaining existing achievements," he noted.
A significant part of his speech was dedicated to the challenges of financing innovation. Mr. Stournaras highlighted the pivotal role of private equity, such as Venture Capital, in supporting knowledge-intensive companies, explaining that traditional forms of banking financing cannot meet the needs of businesses relying on intangible assets. "The existence of a mature private financing ecosystem is crucial," he said, citing the example of Silicon Valley.
Additionally, he addressed the challenges at the European level, mentioning slow progress in the Capital Markets Union and the restrictive regulatory framework that prevents pension funds from supporting higher-risk and higher-return investments. The Governor concluded with a call for the completion of banking and capital market integration in Europe and the promotion of policies that will enhance the effective channeling of savings into productive and innovative investments.
"Today's discussion should contribute significantly to the public dialogue on strengthening the competitiveness and productivity of the Greek economy," Mr. Stournaras concluded.
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