Building Local Capabilities: SignalGeneriX’s Role in Strengthening the Cypriot Defence Industry
Dr. Tasos Kounoudes, President of CARIE (Cyprus Association of Research and Innovation Enterprises) and CEO of SignalGeneriX, talks in an interview about the Cypriot defence industry.
The Cypriot defence industry is growing rapidly, thanks to around thirty innovative SMEs developing dual-use technologies for both civilian and military applications. Companies like SignalGeneriX are at the forefront of this transformation. SignalGeneriX has won multiple national and international innovation awards, ranks as the top European SME in EU defence development contracts, and is among Deloitte’s 50 fastest-growing tech companies in the Middle East and Cyprus for 2022 and 2023.
Since the creation of the Cyprus Defence Cluster under the Cyprus Association of Research and Innovation Enterprises (CARIE) in 2019, the industry has expanded significantly, with Cypriot companies now participating in 17 major European defence contracts worth about €172.5 million. Local firms have also gained visibility by exhibiting at leading defence expos like DEFEA and Eurosatory under the auspices of the Cypriot Ministry of Defence.
The defence industry’s key strengths include its agility, innovation, and successful partnerships with major European players, which help build local capabilities and know-how. However, Dr. Kounoudes highlights the importance of convincing the Ministry of Defence to invest in Cyprus-made defence systems – especially advanced systems like drones, electronic warfare tools, and surveillance technologies – rather than relying entirely on foreign suppliers.
To strengthen the sector, Dr. Kounoudes advocates for closer collaboration between local companies and large international defence suppliers, using the example of Greece’s successful frigate program, which boosted local industry and job creation. He believes this approach would enhance Cyprus’s defence self-reliance and turn defence spending into economic growth.
Over the past two decades, the local entrepreneurial culture has also evolved significantly, with more graduates joining or founding high-tech startups instead of seeking government jobs, a change driven in part by CARIE’s efforts.
Finally, the recent lifting of US defence trade restrictions has opened new opportunities for Cypriot companies to collaborate with US firms, supported by active engagement with the US Embassy and joint participation in international defence exhibitions. These new partnerships are expected to strengthen the industry’s global footprint and capabilities.
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