Nikolaos Koutras: The ability to invest and not just spend is of high importance in the defence domain

Established in 2011, ADDITESS (Advanced Integrated Technology Solutions & Services Ltd) develops state-of-the-art hardware and software security solutions in physical security, border management, critical infrastructure protection and cybersecurity.

Its products include ADD-Task, a next-generation incident and event reporting management platform for military camps and installations; CSIM, a cybersecurity incident management platform to support military Special Operations Capability Specialists (SOCS); and ADD-C3, a command, control and coordination system for border security operations.

It also researches and designs UAV systems for defense applications.

The company's CEO & Managing Director Nikolaos Koutras recently talked to GOLD magazine about the way ahead.

Our part of the world has long been defined by conflict and uncertainty. Why do you believe that it has now become important for Cyprus to invest in the defence sector?

Investing in the defence sector should be treated as a public good and more specifically as a European public good, being non-excludable and non-rivalrous. The security of Cyprus, a country half occupied by Turkish forces, is largely driven by the security of the other EU member states, assuming that the EU is defending its territory as a bloc. If EU common defence is not achievable, then an external perpetrator could take on individual countries, one at a time. Strengthening the defence of Cyprus would enhance the safety of country Y and vice versa. The conflict in Ukraine proves this.

While European defence R&D spending increased significantly – it reached €11 billion in 2023, more than double the amount spent in 2016 – the US and China still outspend the EU. How does this disparity impact your ability to innovate and compete on a global scale? Are there any other structural issues on a European level that need to be addressed?

The ability to invest and not just spend is of high importance in the defence domain. Investing gives you the ability to design, manufacture and use your own advanced technological weaponry systems, so you don’t have to depend on others. In this regard, Europe and the EU member states need to invest further and more rapidly in technologies and areas that reduce our dependence on others. In the defence sector, EU funds should be specifically invested in small EU countries like Cyprus to support our growth.

On a local level, does the relatively small size of Cyprus’ defence cluster present challenges in competing with larger ecosystems or are there unique strengths you can leverage?

Our international cooperation as technology developers and providers has given us the ability to identify the areas that strengthen our participation in the European manufacturing supply chain and are not only based on our local small-size defence sector. Some 50% of European industrial manufacturing capacity depends on small- to medium-sized subcontractors’ activities.

Cyprus is strengthening its defence ties with nations like the US and France and aims to allocate 2% of its GDP to defence spending. Has this impacted your work? How can Cyprus become a key player in Europe’s defence ecosystem?

Cyprus’ cooperation with France and the US in the near future, expands and exposes our cooperation capability on an international level. The allocation of 2% of national GDP must not only target the acquisition of modern weaponry systems but should also be invested in the infrastructures and personnel of the local defence industry ecosystem in order to upscale our capabilities and manufacturing capacity.

Finally, as drones, robotics and AI take centre stage in the theatre of modern warfare, what do you see as the next defining innovation?

In the coming years, the combination of the previously mentioned technologies will be the major breakthrough innovation. Standalone drones or various robotics platforms interconnected with man-operated systems under advanced AI decision-support mechanisms will dominate the theatre of operations.

COLLABORATIONS

The company has participated in various projects funded by the European Defence Agency, aiming to cooperate with European industrial partners in defence and to enhance its engineers’ expertise in data management, machine learning, UAV systems, composite materials and cybersecurity. Its ultimate goal is to integrate into the European defence supply chain. Key EU projects include LYNKEUS, FIRES, FIRES 2, MARSEUS, THEMA and TICHE, while partnerships extend to companies like Saab, MBDA Missile Systems, the Naval Group, RINA, and the KNDS Group.

This interview first appeared in the February edition of GOLD magazine. Click here to view it.