Armenia

Armenia historically was a “Silicon valley” for the Soviet Union with its continuing traditions. The Armenian government announced the development of information and communication technologies (ICT) as a high priority direction for country development. In 2001, the Government approved the ICT Development Concept Paper and Action Plan prepared by the Ministry of Trade and Economic Development in accordance with the recommendations outlined in the ICT Master Strategy. Various programs have been designed by Donor organizations and their implementing agencies to make assessments and to support the development of the ICT sector. Among these are: World Bank, European Union, USAID, GTZ, OSI-AF, Eurasia Foundation, UNDP, and TACIS.

The ICT policy is now supported by the ICT Development Support Council (ITDSC) chaired by the Prime Minister. ITDSC has a permanently working Secretariat to act as a bridge between the Government, and private and public sectors. The Armenian Government, in close coordination and with support from the World Bank and USAID, developed the ICT Master Strategy and the ICT development implementation plan to establish Armenia as a regional ICT hub.

The ICT sector is comprised of both domestic and foreign companies generating approximately 100 million € annually. Today, the ICT industry is one of the most successful and fastest growing industries in Armenia. In 2006, the share of the sector in Armenia's GDP was 1.3%, which is comparable to that of India (1.4%) and Germany (1.3%). There are over 160 ICT companies in Armenia with a total workforce of over 4,690. Newly established ICT companies represent 20% of annual growth, on average.

The Armenian government has an ambitious national vision for ICT and supports the leading role of ICT. In recent years, the ICT sector has witnessed a major inflow of foreign investors who have located in Armenia to benefit from the talented and creative workforce pool and highly competitive wage rates. Around 63% of the industry’s output is exported to over 20 countries, mainly from the USA, Europe, and CIS.

The major specializations include embedded systems, semiconductor design and testing, custom software development, accounting and financial applications, security and encryption, artificial intelligence, software development outsourcing, financial applications, multimedia design, industrial automation, Internet applications, web design and development, educational software, management information systems (MIS), computer aided design (CAD), and systems integration.

The educational system of Armenia produces high quality, talented, trained specialists in different areas of computer science and information technologies. Over 6,800 students are enrolled in 26 educational institutions with ICT related specializations. The number of enrolled in and graduated students from ICT degrees is expected to increase in the coming years because of opportunities and benefits that the ICT industry offer to young professionals. According to the McKinsey study, the average annual employee increase of 340 students is required for a High ICT sector growth scenario.

Key IT R&D centers are, for example:

ø Yerevan State University (YSU) and the State Engineering University of Armenia (SEUA) specialise in various areas of CIS, Mathematics, Physics, Hardware Design, Semiconductors..

ø The European Academy and the European Regional Institute of Information and Communication Technologies in Armenia (ERIICTA), established in 2002 by the European Union, recognise the role of Armenia in the area of ICT in the region

ø The CIS department of the American University of Armenia (AUA), created in 2001 as an affiliate of the University of California

ø The Faculty of Applied Mathematics and Informatics of the Russian-Armenian (Slavonic) University specialized in mathematics and math-modelling, system programming, and math cybernetics.

Organisations supporting the development of the Armenian ICT industry:

ø Armenian High-Tech Council of America (AHTCA) which unites many US entrepreneurs and executives in high-tech areas with the goal of promoting and supporting the creation and development of technology-based businesses in Armenia.

ø Union of ICT Enterprises (UITE) which unites Armenian software, hardware, ICT training, and Internet service provider companies.

ø Enterprise Incubator Foundation (EIF) - the largest ICT development program currently implemented in Armenia with the mission of stimulating Armenia’s economic growth by assisting the local Information and High Technology enterprises in business development. The EIF’s main directions are to provide business, skills development, and facility services and to create opportunities for partnership and investment.