This session will discuss economic adjustment during the Greek crisis focusing on both internal and external imbalances. Special focus will be on the major challenges facing the Greek economy on the way forward towards a new growth model. Progress in re-balancing the Greek economy toward export-oriented growth will be presented along with the main weaknesses of this process. Improving conditions for innovation and entrepreneurship is critical for Greece's economic recovery as a way to restore competitiveness, growth and job creation. The session will flag the weaknesses of innovation performance in Greece, address challenges at the national and European Union levels and focus on major pillars of the road map for achieving sustainable growth.