Why do we insist in Biotech and keep discussing financial instruments for growth? The reason is, this is an industry that is growing at a rate of 13% annually and will be creating an economic footprint of $1.2 trillion by 2030.  

Our aim is at least a small part of this to end up in Greece. Success does not only depend on science-related factors. The economic environment, human resources, the existence of networks and physical infrastructure are some of the factors. In addition, it is also a question of incentives, tax exemptions and financial conditions. 

The participants of the discussion (you can find here the video from Komvos-Node’s channel) include: 

• • • Vassilis Paretzoglou – development director of DEMO pharmaceutics, who is the sponsor of this event and we would like to thank them for their services. 
    • Anna Panagopoulou – Director of Research, Development and Innovation at the European Commission. 
    • Marianna Nathanail – representative of the European Investment Bank in Greece and 
    • George Antoniadis – Development Director of Piraeus Bank, who is a Major Sponsor of Komvos-Node. 

    The discussion was moderated by Harris Antoniou – treasurer of Komvos-Node, founder of Neptune Maritime Leasing and director of Cordus Capital AG investment company. 

The panel discussion focused on the importance of funding for the development and promotion of biotechnology projects and the creation of a sustainable ecosystem in Greece. Reference was made to the existing financial tools available from both the European Union and other entities, and how these can support the development of this area. 

European Financial Tools

The European Union has developed several financial instruments in order to promote research and innovation in biotechnology. One of the most important is the Horizon Europe program, which provides funding for research and innovation across Europe. It has a budget of €95 billion and covers a wide range of projects, from basic research to innovative technologies. Of this, a significant amount is channelled into biotechnology projects and other related cutting-edge technologies. 

A specialised development and support tool is the European Innovation Council (EIC), which promotes start-ups and high-risk companies in the field of innovation. The EIC funds projects with significant entrepreneurial risk. It has already invested €350 million in biotechnology. This funding is targeted at innovative companies which have the potential to develop new products to be brought to market. Through the EIC, funds are available both as grants and as equity financing. Notably, partnerships are supported between universities and companies to promote new technologies. 

In addition, the InvestEU program is another tool to support innovative projects, offering lifelong funding in businesses. In this context, the European Investment Bank (EIB) plays a central role, by financing projects that boost research, innovation and infrastructure, such as research centres and technology parks. 

Financial Tools in Greece

Greece has been able to make use of European financial instruments, but there are still challenges in terms of capital absorption, particularly by start-ups. A key financial instrument in Greece is the Investment Clawback, which allows pharmaceutical companies to offset their debts to the public sector, towards research and development expenditure. This tool has allowed the creation of significant investment plans for the development of new industrial units, such as DEMO’s biotechnology research centre in Agios Stefanos. 

In addition, the Ministry of Development’s Strategic Investment Program offers incentives for large investments, including tax breaks and subsidies. These programmes have been used by pharmaceutical companies targeting the production of biological drugs, which is a fast-growing sector with great potential for the Greek pharmaceutical industry. 

The European Investment Bank provides low-interest loans for large projects, while the European Investment Fund supports SMEs with high-risk investments through Venture Capital. 

Challenges for Start-Ups

A key problem that was highlighted, is the difficulty for start-ups to access bank financing. Due to high risk and lack of stable revenues, start-ups often find it difficult to obtain loans from banks, even with the support of financing programs. However, it was reported that there are programs especially designed for small businesses, such as the “TEPIX III”, which provide guarantees for loans to start-ups. 

In addition, the European Union is investing in the creation of innovative ecosystems through cooperation among regions, targeted in reducing the innovation gap between developed and less developed regions of Europe. 

Conclusions

The discussion highlighted the importance of accessing financing and investment capital for the development of biotechnology and innovation in Greece. Despite existing financial instruments, there are still challenges in raising capital, especially for start-ups, which often lack the financial strength to meet the loan requirements. 

However, with the support of European and national financial instruments, there is potential to develop a strong biotech ecosystem in Greece, which will strengthen both the domestic economy and the country’s position in the European and international biotech market. 

Watch here the discussion that took place during the 2nd conference on Biotechnology and Health-Economy Synergy Structures. The event was moderated by Konstantinos Drosatos and Nikos Kyrpides. The conference was hosted at the Bio³ conference organised by Bioninnovation. 

More information on the activities of the Biotechnology Node can be found on its website: https://komvos-node.org/βιοτεχνολογία-και-επιστήμες-υγείας/ 

The sponsor of the conference was DEMO ABEE pharmaceutics. Komvos-Node is supported by Ecovis-Onetax accounting. Piraeus Bank is a major sponsor of Komvos-Node supporting it towards realizing its vision.