Despite the rapid evolution of modern warfare, Greece’s Ministry of Defense remains entangled in outdated technologies and rigid bureaucracy. In a striking example, a senior executive from the country’s defense industry recently submitted required documents to the ministry electronically, only to be told—without irony—that he must resend them by fax. This incident captures the dysfunction at the heart of Greece’s national defense apparatus, which is expected to lead the country into an era of drone swarms, hypersonic missiles, and space-based systems.
A System Stuck in the Past
Greece’s defense ecosystem is operating with a 20th-century mindset in a world defined by 21st-century threats. While the global battlefield is being transformed by low-cost drones, AI-powered systems, and hybrid warfare, the Greek military continues to invest heavily in expensive ships and aircraft that may be vulnerable to cheap, disruptive technologies.
Experts warn that “a single drone can destroy an aircraft worth millions,” and that most armed forces—including Greece’s—have yet to grasp the full implications of drone swarms and next-gen weaponry. Meanwhile, bureaucratic inefficiencies persist, and the lack of coordination among key stakeholders—government agencies, private companies, and the military—prevents real progress.
A New Hope: The Hellenic Center for Defense Innovation
In an attempt to break through these systemic barriers, Defense Minister Nikos Dendias launched the The Hellenic Center for Defense Innovation (ELKAK) in 2023. Backed by €100 million in state funding and the potential to leverage an additional €560 million, ELKAK aims to modernize and connect Greece’s fragmented defense ecosystem. The goal is to enable local industries to compete in European defense programs and reduce reliance on foreign technology.
The initiative is still in its early stages, but it’s already seen as a make-or-break effort by defense startups, established companies, and research institutions. Yet ELKAK’s mandate has created friction with the Armed Forces, which view it as an unwelcome intruder. Tensions over jurisdiction and control continue to delay crucial decisions.
Disconnected Efforts, Redundant Projects
Greece’s defense industry suffers from a fundamental lack of coordination. A clear example is the development of two separate drones—both named “Archytas”—by different organizations with minimal communication between them. One is being developed by the Hellenic Aerospace Industry (HAI), while the other is a joint effort between the Hellenic Navy, engineering schools, and a private company. This duplication illustrates how disconnected and inefficient the defense innovation process remains.
Even promising developments, such as the creation of new radar systems and vertical-takeoff drones, are hampered by fragmented strategies and administrative delays. Efforts by ELKAK to create a centralized database and facilitate collaboration are ongoing but face time constraints as technology advances faster than policy reform.
Bureaucracy vs. Innovation
In the current system, companies participating in defense procurement must submit exhaustive physical documentation—sometimes in boxes—subject to months or even years of review. Certification for drone operators is only available through the private sector and at high cost, while testing fields for new technologies are scarce and require written approval from the General Directorate for Defense Investments and Armaments (GDDIA).
Even when systems are purchased or leased—often from foreign suppliers—the integration of these tools into Greek defense operations is slow. Ironically, several Greek companies already sell competitive drone technologies on the global market, but face resistance at home.
An Ecosystem in Need of Structure
Greece’s defense industry includes a few major players, numerous small enterprises, and a wealth of academic research talent—but they operate in silos. Two trade associations represent industry stakeholders: the Hellenic Manufacturers of Defense Materiel Association (SEKPY) with 250 mostly small firms, and the Hellenic Aerospace, Defence & Security Industries Association (EELAEA), representing about 25 large aerospace and defense companies. Their strained relationship further complicates collective action.
ELKAK’s challenge is to unify these disconnected parts, aligning military needs with industrial capabilities. The long-term goal is to develop “European-level champions” capable of exporting advanced systems—not just supplying the Greek Armed Forces.
Promising Signs Amid Persistent Challenges
There are some encouraging developments. ELKAK has recruited officers with strong academic and technical backgrounds—including a naval engineer with a postgraduate degree from MIT—to act as liaisons between the military and the private sector. In a novel move, conscripts holding PhDs can now serve their military duty at ELKAK, helping merge scientific innovation with defense applications.
Still, progress is slow. In recent procurement calls, many companies requested delays, citing the requirements as “too advanced” or “too American.” Without a willingness to break from outdated practices, Greece risks missing a critical opportunity to modernize its defense posture and play a meaningful role in Europe’s rearmament efforts.
